|Politecnico di Torino|
|Academic Year 2015/16|
Economics and business organization
Master of science-level of the Bologna process in Mechanical Engineering - Torino
The subject provides the basic information needed to understand the macroeconomic and market background in which the companies act, the instruments used for economic assessment and for production activities planning, the techniques of economic analysis and of control of industrial processes, the knowledge of industrial organisation principles and the various forms of organizational structure.
The subject draws at different economic and law disciplines, to endow the student with different instruments to understand the firm behaviour and to establish good strategic choices. In particular:
- To understand firm objectives and the criteria to assess whether the economic initiative is profitable
- To define the nature and characteristics of the firm in an economic view and from a law and organisational perspective.
- Understand the accountancy system and the methods to analyse it
- Use accountancy data and economic criteria to take strategic decisions.
Expected learning outcomes
Expected learning outcomes
Knowledge of basic economic information to use in the life of the enterprise and in the external background.
Knowledge of economic and financial dynamics of the industrial enterprise and legal-contract forms for the exercise of economic activities.
Knowledge of the industrial organization principles, the organizational structure, patterns of division of work, the fundamental functions in the enterprise.
Knowledge of the techniques and methodologies for the monitoring and analysis of processes and financial results of a company.
Knowledge of methods for the determination of industrial costs and techniques of investment appraisal.
Ability to understand the economic and financial reports.
Ability to assess the profitability of a proposed investment.
Ability to make decisions and corrective actions on the basis of economic considerations.
Ability to connect the typical processes of a company with its industrial dynamics and economic and financial performances.
Ability to perform production planning based on economic considerations.
Ability to understand, interpret and correctly use accountancy data.
Ability to correctly settle the problem set to come to correct economic decisions, including investment evaluation.
Prerequisites / Assumed knowledge
Elements of mathematical analysis.
First part: The firm in the economic, law and organisational perspective
- The economic definition of firm
- The firm as a node of economic and financial flows
- Scheme of the production cycle starting from the entrepreneurial idea
- The production factors
- Profit, added value and the assessment of firm viability
- The definition of firm in the Italian law
- The types of societies
- Elements of firm organisation
- Business functions
Second part: Accountancy and balance sheets
- Information limits in accountancy data
- Ordinary accountancy
- Final revisions and balance sheet closure
- Balance sheet reclassification
- Accountancy indexes
- The monetary cycle
- The cash flow prospect
Third part: managerial economics
- Cost functions sales and profit functions in strategic decisions
- Investment evaluation
All arguments will be accompanied by exercises, simulating business cases.
At the end of the courses a detailed programmed will be published on this web-site, with the list of all subjects included in the examination, the reference to the official text for every argument, and relevant exercises.
• OVERVIEW OF THE ECONOMIC SYSTEM THROUGH THE NATIONAL ACCOUNTS AND MACROECONOMICS
Introduction to National Income.
Small and Big business.
Legal structure of a business
Consumption, saving, investment, depreciation.
Business accounting and national accounting: value added.
Public Administration and the National Income.
GDP and GNP in an open economy.
GDP, GNP and DGNP.
Introduction to Keynesian macroeconomic analysis.
The income-expense model
The IS-LM model
Fiscal and monetary policy.
• COMPANIES AND EXTERNAL BACKGROUND
Physical & Natural Background
Social and Cultural Background
Technological & Economic Background
Political & Legislative Background
Specific Background: the productive sector
Specific Background: the forms of market
The imperfect markets and barriers to entry
• ORGANIZATIONAL STRUCTURES of COMPANIES
The organizational thinking’s evolution
The organizations’ life cycle.
The design of the organizational structure.
Traditional models of organizational structures.
The new models of organizational structures.
• Economic and Financial Statement
The objective of Accounting. The stakeholders
The main Economic and Financial documents.
The companies listed on the Stock Exchange. The disclosure requirements.
The construction of the budget and the reporting
The double-entry bookkeeping.
Brief analysis of the economic and financial budget.
Reclassification of the Balance Sheet.
Reclassification of the income statement.
The main economic and financial indicators.
• BUSINESS COSTS AND MANAGEMENT CONTROL
Costs as a decision tool.
Monetary and non-monetary costs.
The distinction between fixed costs and variable costs.
Cost functions and their reliability
Costs and production planning. Mix.
Overview on the management control. The cost centers and the price formation.
• INVESTMENT DECISIONS
Nature and motivations of industrial investments.
Classification of industrial investments.
Valuation of investments. The cash flows and discounting them.
Selection criteria and evaluation methods for industrial investment.
The problem of the cost of capital.
Payback, NPV, IRR.
Evaluation and uncertainty. Probabilistic methods and development of scenarios
• ELEMENTS OF BUSINESS MANAGEMENT
Policies and measurement of customer satisfaction.
Principles, rules and types of benchmarking.
Continuous Improvement and Re - Engineering.
Lean production and Lean Management.
Principles, control, advantages and disadvantages of Outsourcing.
The subject is based on theory lessons and exercises carried out by the lecturer.
The lessons will be delivered by three teachers.
Elena Ragazzi (professor of the course) will carry out the following parts:
- Economic introduction to the firm,
- Managerial economics
Greta Falavigna will carry out the following parts:
- Industrial accountancy
- Accountancy analysis.
Marco Gallea will carry out the following parts:
- Law introduction to the firm
- Discussion of some financial case study.
The argument of the following lessons will be indicated by a notice on the web-site. Please provide to carry at classes the relevant texts, above all the texts of the exercises.
Lectures and exercises of the lecturer.
In particular, the tutorials will cover statistical data analysis of the economy and industry, exercises of national accounts and macroeconomics, costs and accounting, reading of the Balance Sheet and Income Statement of a company, methods of investments valuation, cases study on company organization and strategies.
Texts, readings, handouts and other learning resources
There are two main texts for the subject:
- The book "Il bilancio per i manager" G. Fraquelli, Casa Editrice Ambrosiana. It covers the parts on societies, organisation, accountancy, indexes.
- A notes text that is downloadable on this website on all the remaining parts. It also contains some reference schemes and the text of the exercises that will be done at the classes.
The students may also find on the website:
- The texts and the solutions of last year exams
- A glossary
- A list of FAQ which the student should consult before asking a question to the teacher.
The precise references on the various parts are reported hereafter.
FIRM AND PROFITABILITY
Notes text; part one "Impresa e profitto"
G. Fraquelli "Il bilancio per i Manager" Parr. 1.4-1.6. Notes text; part two: "le forme giuridiche dell'impresa".
G. Fraquelli "Il bilancio per i Manager" Le funzioni aziendali (Solo par. 1 .7). Notes text, part three: "Organizzazione dell'impresa"
G. Fraquelli "Il bilancio per i Manager", chapter 2 and 3. Chapter 4 only for cash-flows (par. 4.7). Chapter 5 includes exercises. Note tecxt; part four: "Contabilità e bilancio"
Notes text; part five ("Funzioni di costo") and part six ("Investimenti")
Students wishing to find more guidance on exercises on managerial economics may use: G. Fraquelli, E. Ragazzi "Economia manageriale - Problemi e casi pratici", copies of the relevant parts are available at the "centro stampa".
1. Il bilancio per i Manager, G. Fraquelli (a cura di), Casa Editrice Ambrosiana
2. Economia manageriale - Problemi e casi pratici, G. Fraquelli, E. Ragazzi, UTET
The final programme, which will be the reference for the exam, will be made available at the end of the course in the section "Materiale didattico", folder "Varie/programmi".
Material prepared by the lecturer and uploaded to the portal is considered fundamental. It can be integrated with the partial or total reading of texts, which presents an overview of example:
A. LA BELLA, E. BATTISTONI: "Economia e organizzazione aziendale", MILANO, APOGEO 2008.
O. CASTELLINO, "Introduzione alla Contabilità Nazionale", X edizione, Torino, Giappichelli 2007.
G. PELLICELLI : "Economia e direzione delle imprese" TORINO, GIAPPICHELLI 2000.
G. FRAQUELLI: "Elementi di Economia manageriale" TORINO UTET 1997.
AA.VV. : "Economia dell’impresa, casi e problemi", TORINO, GIAPPICHELLI 1989.
Assessment and grading criteria
Assessment and grading criteria
There will be only a written examination.
It will include open and close theoretical questions and exercises. Examples concerning the previous academic year can be download by the site. At the examination it won’t be allowed to possess or consult any kind of text or note. It is strongly suggested to possess a calculator at the exams.
It is compulsory to enrol at the examination.
The student must also take the paper and the pen. Remember that texts written by pencil are not accepted and won’t be evaluated.
ELECTRONIC REGISTRATION OF THE NOTES
Notes will be registered on an electronic platform. Only notes of students enrolling at the exam through the platform may be registered.
When the examinations have been corrected, the teacher publishes the results :
- On a file on this web-site (folder "results"), with the detail of the notes assigned to every part of the exam
- And on the platform.
Students receive an automatic communication warning that there are news concerning the exam.
At that point students whose note is 18 or over have to communicate if they accept or refuse the note within a term that is indicated on the notice.
When the term is reached the notes (except the notes of students who said that they want to try the exam again) are fixed in the system and may no longer be modified.
The notes will be available on the "carico didattica" within a short time, as soon as the signature of the second component of the commission is available.
The examination is designed to assess the level of skills acquired by students in the various fields of Economics and Business Organization The test is written, takes about 2 hours and a quarter, and consists of three applications numerical and three theoretical short answer questions.
Programma definitivo per l'A.A.2015/16