Economics of the Business Environment

In this module you will develop your understanding of basic economic concepts and their application to business and management. You will cover both micro and macroeconomics and will employ a variety of examples from across the world.

In looking at the energy industry, you will consider three aspects in particular:

Vulnerability: Explore the internal economics of the energy business especially its costs in the short run.

Exposure: Study external economic forces with emphasis on both the energy market and the broader macroeconomic context. This will include the impact of government interventions in the wider global economy.

Mediation and Protection:Examine the energy market structure, market power, and strategic interaction between players including governments. Consider how market power mediates the impact on the firm of external market and macro forces.

By the end of this module you will have an:

Increased knowledge of the global economy and of key current events
Understanding of some core elements of economic analysis and the ability to use them
Appreciation of the internal economics of an energy business and the contextual constraint on business decisions from the economic environment
Awareness of what managers can and cannot do or control in their strategy-making
Understanding of the effects of public economic policy on the energy industry
Increased understanding of why managers must cope with uncertainty and risk.