Managerial Economics

301. MANAGERIAL ECONOMICS

Objective: The purpose of this course is to apply micro economic concepts and
techniques in evaluating business decisions taken by firms. The emphasis is on explaining
how tools of standard price theory can be employed to formulate a decision problem,
evaluate alternative courses of action and finally choose among alternatives. Simple
geometry and basic concepts of mathematics will be used in the course of teaching.

Course content
Unit I: Demand, Supply and Market equilibrium: individual demand, market demand,
Individual supply, market supply, market equilibrium; Elasticities of demand and supply:
Price elasticity of demand, income elasticity of demand, cross price elasticity of demand,
Elasticity of supply; Theory of consumer behaviour: cardinal utility theory, ordinal utility
theory (indifference curves, budget line, consumer choice, price effect, substitution effect,
income effect for normal, inferior and giffen goods), revealed preference theory.

Unit II: Producer and optimal production choice: optimizing behavior in short run (geometry
of product curves, law of diminishing margin productivity, three stages of production),
optimizing behavior in long run (isoquants, isocost line, optimal combination of resources)
Costs and scale: traditional theory of cost (short run and long run, geometry of cot curves,
envelope curves), modern theory of cost (short run and long run), economies of scale,
economies of scope.

Unit III: Theory of firm and market organization: perfect competition (basic features,
Short run equilibrium of firm/industry, long run equilibrium of firm/industry, effect of
Changes in demand, cost and imposition of taxes); monopoly (basic features, short run
Equilibrium, long run equilibrium, effect of changes in demand, cost and imposition of
Taxes, comparison with perfect competition, welfare cost of monopoly), price discrimination,
multiplant monopoly ; monopolistic competition (basic features, demand and cost, short run
equilibrium, long run equilibrium, excess capacity) ; oligopoly (Cournot’s model, kinked
demand curve model, dominant price leadership model, prisoner’s dilemma)

Unit IV: Factor market: demand for a factor by a firm under marginal productivity theory
(perfect competition in the product market, monopoly in the product market), market
demand for a factor, supply of labour, market supply of labour, factor market equilibrium.

Unit V:
Factors of Production, Production Function, Laws of Returns- Law of Variable Proportions
and Laws of Returns to Scale, Economics of large scale and small scale production

Readings:
1. Dominick Salvatore (2009). Principles of Microeconomics (5th ed.) Oxford
University Press
2. Lipsey and Chrystal. (2008). Economics. (11th ed.) Oxford University Press
3. Koutosyannis (1979). Modern Micro Economics. Palgrave Macmillan
4. Pindyck, Rubinfeld and Mehta. (2009). Micro Economics. (7th ed. ). Pearson.
301. MACROECONOMICS
Objective: This course deals with the principles of Macroeconomics. The coverage
includes determination of and linkages between major economic variables ; level of
output and prices, inflation, interest rates and exchange rates. The course is designed to
study the impact of monetary and fiscal policy on the aggregate behavior of individuals.
Course Content
Unit I: Measurement of macroeconomic variables: National Income Accounts, Gross
Domestic Product, National Income, Personal and Personal disposable income; Classical
theory of income and employment: Quantity Theory of Money – Cambridge version,
Classical aggregate demand curve, Classical theory of interest rate, effect of fiscal and
monetary policy.

Unit II: Keynesian theory of Income and employment: simple Keynesian model,
components of aggregate demand, equilibrium income, changes in equilibrium, multiplier
(investment, Government expenditure, lump sum tax, foreign trade), effect of fiscal and
monetary policy, crowding out, composition of output and policy mix, policy mix in
action; ISLM model : properties of ISLM curves, factors affecting the position and slope
of ISLM curves, determination of equilibrium income and interest rates, effect of
monetary and fiscal policy, relative effectiveness of monetary and fiscal policy.

Unit III: Money: functions of money, quantity theory of money, determination of money
supply and demand, H theory of money multiplier, indicators and instruments of
monetary control; Inflation: meaning, demand and supply side factors, consequences of
inflation, anti-inflationary policies, natural rate theory, monetary policy-output and inflation,
Phillips curve (short run and long run)

Unit IV: Open Economy: brief introduction to BOP account, market for foreign exchange
and exchange rate, monetary and fiscal policy in open economy, Mundell Fleming model
(perfect capital mobility and imperfect capital mobility under fixed and flexible exchange
rate)
Unit V: Analysis of business cycles: Phases of business cycles, Features of business cycles,
Theories of business cycles: Hawtrey theory of business cycles; under-consumption theory,
Keynes theory of business cycles, Samuelson’s model of business cycles.

Readings:
1. Froyen, R.P. (2011): Macroeconomics-theories and policies (8th ed.) . Pearson:
2. Dornbusch and Fischer (2010). Macroeconomics (9thed.). Tata McGraw Hill
3. N Gregory Mankiw (2010). Macroeconomics (7thed.). Worth Publishers
4. Olivier Blanchard, Macroeconomics (2009). (5thed.) Pearson

302. PRINCIPLES OF MARKETING

Objective: This course aims to familiarize students with the marketing function in
organizations. It will equip the students with understanding of the Marketing Mix
elements and sensitize them to certain emerging issues in Marketing. The course will
use and focus on Indian experiences, approaches and cases
Course Content:

Unit I: Introduction: Nature, Scope and Importance of Marketing, Evolution of

Marketing; Core marketing concepts; Company orientation - Production concept,
Product concept, Selling concept, Marketing concept, Holistic marketing concept.
Marketing Environment: Demographic, economic, political, legal, socio cultural,
technological environment (Indian context); Portfolio approach – Boston
Consultative Group (BCG) matrix

Unit II: Segmentation, Targeting and Positioning: Levels of Market Segmentation,

Basis for Segmenting Consumer Markets, Difference between Segmentation,
Targeting and Positioning;

Unit III: Product & Pricing Decisions: Concept of Product Life Cycle (PLC), PLC
marketing strategies, Product Classification, Product Line Decision, Product Mix
Decision, Branding Decisions, Packaging & Labelling, New Product Development.
Pricing Decisions: Determinants of Price, Pricing Methods (Non-mathematical
treatment), Adapting Price (Geographical Pricing, Promotional Pricing and Differential
Pricing).

Unit IV: Promotion Mix: Factors determining promotion mix, Promotional Tools –
basics of Advertisement, Sales Promotion, Public Relations & Publicity and Personal
Selling; Place (Marketing Channels): Channel functions, Channel Levels, Types of
Intermediaries: Types of Retailers, Types of Wholesalers. Marketing of Services - Unique
Characteristics of Services, Marketing strategies for service firms – 7Ps.

Unit V: Recent Trends in Marketing: Introduction, E-commerce, E-marketing, E-

Retailing, Relationship marketing, Mobile marketing, Green marketing

Readings:
1. Kotler, P. & Keller, K. L.: Marketing Management, Pearson.
2. Kotler, P., Armstrong, G., Agnihotri, P. Y., & Ul Haq, E.: Principles of Marketing:
A South Asian Perspective, Pearson.
3. Ramaswamy, V.S. & Namakumari, S.: Marketing Management: Global
Perspective-Indian Context, Macmillan Publishers India Limited.
4. Zikmund, W.G. & D’ Amico, M.: Marketing, Ohio: South-Western College
Publishing.

401. BUSINESS RESEARCH

Objective: To provide an exposure to the students pertaining to the nature and extent of
research orientation, which they are expected to possess when they enter the industry as
practitioners. To give them an understanding of the basic techniques and tools of business
marketing research.

Course Content:
Unit I: Nature and Scope of Marketing Research – Role of Marketing Research in
Decision making. Applications of Marketing Research – marketing research; The
Research process – Steps in the research process; the research proposal; Problem
Formulation: Management decision problem Vs. Marketing Research problem.
Unit II: Research Design: Exploratory, Descriptive, Causal. Secondary Data Research:
Advantages & Disadvantages of Secondary Data, Criteria for evaluating secondary
sources, secondary sources of data in Indian Context, Syndicated Research (in India)

Unit III: Primary Data Collection: Survey Vs. Observations. Comparison of self
administered, telephone, mail, emails techniques. Qualitative Research Tools: Depth
Interviews focus groups and projective techniques; Measurement & Scaling: Primary
scales of Measurement-Nominal, Ordinal, Interval & Ratio. Scaling techniques paired
comparison, rank order, constant sum, semantic differential, itemized ratings,
Likert Scale; Questionnaire-form & design.

Unit IV: Sampling: Sampling techniques, determination of sample size; Data Analysis:
Z test (mean, diff. of mean, diff. of proportion) t test (mean), paired t test, Chi square test,
Introduction to theoretical concept of ANOVA, Factor Analysis and Discriminant
Analysis.

Unit V:Types of research reports – Brief reports and Detailed reports; Report writing:
Structure of the research report- Preliminary section, Main report, Interpretations of Results
and Suggested Recommendations; Report writing: Formulation rules for writing the report:
Guidelines for presenting tabular data, Guidelines for visual Representations.

Readings:
1. Zikmund, Babin & Carr: Business Research Methods, South-Western.
2. Cooper & Schindler: Business Research Methods McGraw-Hill Education,
3. Churchill: Marketing Research: Methodological Foundations, Cengage Learning.
4. Aaker, Kumar, Day - Marketing Research. Wiley.
5. Naresh Malhotra – Marketing Research, Pearson.

DSE II (Marketing)
RETAIL MANAGEMENT
Objective: The primary objective of the course is to have students develop marketing
competencies in retailing and retail consulting. The course is designed to prepare students
for positions in the retail sector or positions in the retail divisions of consulting
companies. Besides learning more about retailing and retail consulting, the course is
designed to foster the development of the student’s critical and creative thinking skills.
Course Contents
Unit I:
Introduction to Retailing, Definition, Characteristics, Evolution of Retailing in India,
Retailing in India, Emerging Trends in Retailing, Factors Behind the change of Indian
Retail Industry. Retail Formats: Retail Sales by ownership, On the basis of Merchandise
offered, non-store Based retail mix &Non traditional selling.
Unit II:
Store Planning: Design & Layout, Location Planning and its importance, retailing image
mix, Effective Retail Space Management, Floor Space Management.
Retail Marketing: Advertising & Sales Promotion, Store Positioning, Retail Marketing.
Mix, CRM, Advertising in Retailing.
Unit III:
Retail Merchandising: Buying function, Markups & Markdown in merchandise
management, shrinkage in Retail merchandise management. Merchandise Pricing: Concept of
Merchandise Pricing, Pricing Options, Pricing Strategies, Pricing Objectives, Types of
Pricing.
Unit VI:
Retail Operation: Elements/Components of Retail Store Operation, Store Administration,
Store Manager –Responsibilities, Inventory Management, Management of Receipts,
Customer Service, Management of Retail Outlet/Store, Store Maintenance, Store
Security.
Unit V: Emerging trends in retailing: Changing nature of retailing, Organized retailing,
Modern retail formats, E-tailing, Challenges faced by the retail sector

Readings
1. Cullen & Newman: Retailing – Environment & Operations, Cengage Learning
EMEA
2. Berman & Evarv: Retail Management, Perntice Hall.
3. Bajaj, Tuli & Srivastava: Retail Management- Oxford University Publications
4. Gibson G Vedamani: Retail Management: Functional principles & practices, Jaico
Publishing House.
5. Harjit Singh: Retail Management, S. Chand Publication.

DISTRIBUTION AND SUPPLY CHAIN MANAGEMENT

Objective: This course would help students develop an understanding about the role of
marketing channels, distribution and supply chain, key issues of supply chain and the
drivers of supply chain performance. The course would acquaint the students with various
concepts.
Course Contents
Unit I: The channel system: Rationale for marketing channel structures, Composition of
marketing channels, Channel Environment.
Unit II: Distribution – Basic concept, Transportations, Inventory, Warehousing,
Managing logistics.
Unit III: Concepts and importance of a Supply Chain (SC), Key issues of Supply Chain
Management, Competitive and SC strategies, Achieving strategic fit.
Unit IV: Dynamics of supply chain: Supply Chain Integration, Push-based, Pull-based
and Push-Pull based supply chain, Demand Forecasting in a Supply Chain, Managing
inventory in SC environment: Transportation in SC environment.
Unit V: Strategic Alliances, Third party and fourth party logistics, Retailer- Supplier
partnerships (RSP), Supplier evaluation and selection, Use of best practices and
Information Technology (IT) in Supply Chain Management.
Readings
1. Ayers, J. B. (2006). Handbook of supply chain management (2nd ed.). Florida:
Auerbach Publication.
2. Ballou, R. H., & Srivastava, S. K. (2008). Business logistics/ supply chain management
(5th ed.). New Delhi: Pearson Education.
3. Chopra, S., & Meindl, P. (2007). Supply chain management: Strategy, planning and
operation (3rd ed.). New Delhi: Pearson Education.
4. Coyle, J. J., Bardi, L. J., & Langley, C. J. (2008). The management of business logistics
(7th ed.). USA: South-Western.
5. Dornier, P. P., Ernst, R., Fender, M., & Kouvelis, P. (1998). Global Operations
Management and Logistics: Text and Cases. New York: John Wiley & Sons.
6. Mentzer, J. T. (2001). Supply chain management. New Delhi: Sage Publications.
7. Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Petterson, J. L. (2009).
Purchasing and supply chain management (4th ed.). USA: Cengage Learning.
8. Raghuram, G., &Rangaraj, N. (2000). Logistics and supply chain management: cases
and concepts. New Delhi: Macmillan.
9. Shah, J. (2009). Supply chain management: Text and cases. New Delhi: Pearson
Education.
10. Simchi-Levi, D., Kaminsky, P, Simchi-Levi, E., & Shankar, R. (2008). Designing and
managing the supply chain (3rd ed.). New Delhi: Tata McGraw Hill.
11. Coughlan, Anderson, Stern, Marketing Channels, Prentice Hall.

ENTREPRENEURSHIP DEVELOPMENT
Objective:This course provides students with a solid introduction to the entrepreneurial
process of creating new businesses , role of Creativity and innovationin Entrepreneurial
start-ups,manage family-owned companies ,context of social innovation and social
entrepreneurship and issues and practices of financing entrepreneurial businesses.

UNIT-1 ENTREPRENEURIAL MANAGEMENT

The evolution of the concept of entrepreneurship, John Kao’s Model on Entrepreneurship,
Idea Generation, Identifying opportunities and Evaluation; Building the Team /
Leadership; Strategic planning for business; Steps in strategic planning, Forms of
ownership – Sole proprietorship; partnership; limited liability partnership and corporation
form of ownership; advantages/disadvantages, Franchising; advantages/disadvantages of
franchising; types of franchise arrangements; franchise contracts; franchise evaluation
checklist, Financing entrepreneurial ventures; Managing growth; Valuation of a new
company; Harvesting and Exit Strategies; Corporate Entrepreneurship

UNIT-2 ENTREPRENEURSHIP, CREATIVITY AND INNOVATION

Stimulating Creativity; Organisational actions that enhance/hinder creativity, Managerial
responsibilities, Creative Teams; Sources of Innovation in Business; Managing
Organizations for Innovation and Positive Creativity.

UNIT-3 SOCIAL ENTREPRENEURSHIP

Introduction to Social Entrepreneurship; Characteristics and Role of Social
Entrepreneurs; Innovation and Entrepreneurship in a Social Context; Start-Up and Early
Stage Venture Issues in creating and Sustaining a Non-profits Organization; Financing
and Risks; Business Strategies and Scaling up.

UNIT-4 FAMILY BUSINESS AND ENTREPRENEURSHIP

The Entrepreneur; Role and personality; Family Business: Concept, structure and kinds of
family firms ; Culture and evolution of family firm; Managing Business, family and
shareholder relationships ; Conflict and conflict resolution in family firms ; Managing
Leadership ,succession and continuity ; women's issues in the family business
;Encouraging change in the family business system.
UNIT-5 FINANCING THE ENTREPRENEURIAL BUSINESS
Arrangement of funds; Traditional sources of financing, Loan syndication, Consortium
finance, role played by commercial banks, appraisal of loan applications by financial
institutions, Venture capital.

Readings
1. Burns, P. (2001). Entrepreneurship and small business. New Jersey:Palgrave.
2. Drucker, P. F. (2006). Innovation and entrepreneurship: Practice and principles.
USA: Elsevier.
3. Gersick, K. E., Davis, J. A., Hampton, M. M., &Lansberg, I. (1997). Generation to
generation: Life cycles of the family business. Boston: Harvard Business School
Press.
4. Hisrich, R., & Peters, M. (2002). Entrepreneurship. New Delhi: Tata McGraw
Hill.
5. Holt, D. H. (2004). Entrepreneurship new venture creation. New Delhi: Prentice
Hall of India.
6. Kaplan, J. (2004). Patterns of entrepreneurship. Wiley.
7. Khandwalla, P. (2003). Corporate creativity. New Delhi: Tata Mc.Graw Hill.
8. Mullins, J. (2004). New business road test. New Delhi: Prentice Hall.
9. Nicholls, A. (Ed.). (2006). Social entrepreneurship new models of sustainable
social change. Oxford University Press.
10. Prahalad, C. K. (2006). Fortune at the bottom of the pyramid ,eradicating poverty
through profits. Wharton school Publishing.
11. Scarborough &Zimmerer, Effective Small Business Management
12. Stevenson, H. (Ed.). (2007). Perspective on entrepreneurship. Boston:Harvard
Business Press.