SYLLABUS & SAP

MM5006 Business Economic

YP56A

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2017
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 Table of Contents
1. Mission of SBM ITB ............................................................................................................................... 4

2. Course Description ................................................................................................................................ 4

3. Learning Goals and Objectives of MBA Program .................................................................................. 4

4. Learning Outcomes of Business Economic ........................................................................................... 6

5. Reading Material ................................................................................................................................... 7

6. The Course Schedule/ Plan ................................................................................................................... 8

7. Assessment Summary ......................................................................................................................... 16

8. Grading Policy ..................................................................................................................................... 16

9. Course Policy ....................................................................................................................................... 16

10. Lecture Profile .................................................................................................................................... 17

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1. Mission of SBM ITB
SBM ITB has mission as follows:

To educate students to be innovative leaders with an entrepreneurial mindset and to

develop and disseminate knowledge of business and management for the betterment of
business, government, and society

2. Learning Goals and Objectives of MBA Program

MBA Program has learning goals and objectives as on Table 1 below. Fourth column shows
the LG/LO of study program attached to courses.

Table 1. Learning Goals and Objectives of MBA Program

No Learning Goal Learning Objectives Course LG/LO
(MM5006)
1 LG 1: Integrative 1. Identify and analyze central problems of a
Thinking business case
2.
Construct multiple perspectives that integrate
different factors or aspects, other related
business functions and relevant contextual
information
3. Create recommendation based on the
constructed perspectives and the companys
strategic objectives
2 LG 2: Team work 1. Understand how to collaborate with others
2. Apply the concept of managing conflict to
resolve problem in small group learning
environment
3. Demonstrate constructive feedback in small
group learning environment
3 LG 3: 1. Present information in an organized and concise
Communication manner
2. Demonstrate skill to persuade others in
Skills
persuasive manners
3. Demonstrate listening skills
4 LG 4: Ethical 1. Recognize ethical issues in business context
Responsibility 2. Assess the impact of ethical issue toward
various stakeholders
3. Systematically analyze the pro and cons of any
decisions related to ethical issues
5 LG 5: Leadership 1. Demonstrate the propensity to take initiative
2. Bring influence toward other people in her/his

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 No Learning Goal Learning Objectives Course LG/LO
(MM5006)
team
3. Inspire and empower others by evaluating,
analyzing, and providing critics on how
leadership behaviors and characteristics affect
employees and businesses outcomes
4. Demonstrate an ability to manage change
6 LG 6: Global 1. Identify global issues that may affect the
awareness industry (Global Intellectual Capital)
2. Develop understanding toward global cultural
aspects that affect business operations
3. Develop business recommendations based on
understanding about the global aspects

3. Course Description
This course aims to (1) familiarize the managers with the economics problems and issues
that confront them daily, and (2) provide them with the concepts, insights and tools to help
them to make decisions and gain competitive advantage for their organizations.

The main goal of this course is to apply the tools of economic theory to address a series of
questions that the managers faced. Using the time-tested economic theory, this course will
explore the real world applications.

This course are divided into two main issues which are Microeconomics and
Macroeconomics, the structure of the courses are explained as follows:

First half of the semester

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 Second half of the semester

4. Learning Outcomes of Business Economics

Learning outcomes of this course can be seen in Table 2 below.

Table 2. Learning Outcomes of Business Economics

No Learning Outcomes Course LG/LO
1 The students able to provide data coverage, relevant data, 1.1
clear gap between the existing and expected condition, and to
state the business issue in Business Economics
2 The students able to provide a comprehensive and relevant 1.2
conceptual framework in terms of theory and tools that may
explain and/or solve the problem in Business Economics
3 The students able to exceptionally formulate solution 1.3
systematically, coherent, and relevant in Business Economics
4 The students able to exhibit global awareness in directing 6.1
corporate problem solving and decision making related to
macro economics
5 The students able to comprehend and explain the relevance of 6.1
global changes to daily corporate or human actions at best
related to macro economics
6 The students able to assure others over the impacts of global 6.1
issues to recent and future corporate actions from which
changes shall be made and led related to macro economics

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5. Reading Material
Compulsary Materials:
1. Salvatore, D., (2012), Managerial Economics in a Global Economy, 7th Edition, Thomson
South Western. (SD)
2. Colander, Economics, 8th edition, McGrawHill International Edition (COL)

Reference Material:
3. Thomas, Christopher R., S.Charles Maurice, (2011), Managerial Economics, Foundations
of Business Analysis and Strategy, 10th Edition, Mc Graw Hill Irwin. (TM)
4. Case, K., E., Fair, R., C., (2004), Principles f Economics, 9th Edition, Prentice Hall. (CF)

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6. The Course Schedule/ Plan
Table 3 present the class activities that are required to achieve the learning objectives of this course.

Table 3. Weekly Class Activities of Business Economic

Week/ Date/ Module Activities Other Activities/Notes

Topic : Class Discussion
1. Introduction to Managerial Economic 1. Case 2-2: Changes in Demand
2. Demand, Supply, and Equilibrium and Supply and Coffee Prices
2. Case 2-4: Price Control harms the
Sub-topic/ Issue covered : Housing Market
1.1. The Scope of Managerial Economic 3. Case 2-5:The Economic of US
1.2. The Basic Process of Decision Making Farm Support Programs
1.3. The Theory of the Firm
1.4. The Nature and Function of Profits

2.1. Market Analysis

Tuesday, January 17, 2.2. Market Demand
2017 2.3. Market Supply
2.4. When is a Market in Equilibrium
2.5. Adjustment to Changes in Demand and Supply;
Comparative Static Analysis

Activity : Lecture and Class discussion

Learning Outcome : 1, 2, 3
Reading/ References :
1. Syllabus
2. 1 (Ch 1, 2)

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Week/ Date/ Module Activities Other Activities/Notes
Topic : Demand Theory Class Discussion:
1. Case 4-3: Price Elasticity of
Sub-topic/ Issue covered : Demand in Real World Case
1. The Demand for a Commodity 2. Case 4-4: Income Elasticities of
2. Price Elasticity of Demand Demand in Real World
3. Income Elasticity of Demand 3. Case 4-5: Cross Price Elasticities
Tuesday, January 24,
4. Cross- Price Elasticity of Demand
2017
5. Using Elasticities in Managerial Decision Making Class Exercise :
1. 4-2
Activity : Lecture and Class discussion 2. 4- 9
Learning Outcome : 1, 2, 3 3. 4-12
Reading/ References : 1 (Ch. 4)

Topic : Class Discussion:

1. Demand Estimation 1. Case 4-2: Demand for Sweet
2. Production Theory Potatoes
2. Why Do the Prices of Newspaper
Sub-topic/ Issue covered : Rise (CFO p.105)
1.1. The Identification Problem
1.2. Marketing Research Approaches to Demand Students should bring laptop to the
Estimation class
Tuesday, January 31,
1.3. Introduction to Regression Analysis
2017
1.4. Simple Regression Analysis
1.5. Multiple Regression Analysis
1.6. Problems in Regression Analysis
1.7. Demand Estimation by Regression Analysis
1.8. Estimating the Demand for U.S Imports and Exports

2.1. The organization of Production and the Production

Function

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 Week/ Date/ Module Activities Other Activities/Notes
2.2. The Production Function with One Variable Input
2.3. Optimal Use of the Variable Input
2.4. The Production Function with two Variable Inputs
2.5. Optimal Combination of Inputs
2.6. Returns to Scale

Activity : Using SPSS to Estimate Demand

Learning Outcome : 1, 2, 3
Reading/ References : 1 (Ch. 5,7), 4

Topic : Cost Theory and Estimation Class Discussion:

1. Case 8-1 Per Unit Cost Curve in
Sub-topic/ Issue covered : Cultivation Corn
1. The Nature of Costs 2. Case 8-2: The Long Run Average
2. Short-Run Cost Functions Cost Curve in Electricity
Tuesday, February 7, 3. Long-Run Cost Curves Generation
2017 4. Plant Size and Economies of Scale
Class Exercise:
Activity : Lecture and Class discussion 1. 8-1
Learning Outcome : 1, 2, 3 2. 8-3
3. 8- 15
Reading/ References : 1 (Ch. 8)

Topic : Market Structure Class Discussion:

1. Case 10-2: Industry
Sub-topic/ Issue covered : Concentration
Tuesday, February 14,
1.1. Perfect Competition 2. Case 10-3: OPEC Cartel
2017
1.2. Monopoly
1.3. Monopolistic Competition
1.4. Oligopoly

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 Week/ Date/ Module Activities Other Activities/Notes
Activity : Lecture and Class discussion Class Exercises:
Learning Outcome : 1, 2, 3 1. 9-3
Reading/ References : 2. 9-5
1 (Ch.9, 10) 3. 9- 14
2 (Ch. 14, 15, 16) 4. 9-15

Topic : Game Theory Game Theory Simulation

Sub-topic/ Issue covered :

1. Strategic Behavior and Game Theory
2. Dominant Strategy and Nash Equilibrium
3. The Prisoners Dilemma
Tuesday, February 21, 4. Price and Nonprice Competition, Cartel Cheating, and
2017 Prisonners Dilemma
5. Sequential Games and Decision Trees

Activity : Lecture, Class Discussion, and Role Play

Learning Outcome : 1,2,3
Reading/ References : 1 (Ch. 11)

Tuesday, February 28, LG/LO 1.1; 1.2; 1.3 assessment

Mid Exam
2017 through mid-exam
Topic : Articles (CFO):
1. Economic Growth, Business Cycle, Unemployment, and 1. Macroeconomics in Literature :
Inflation the US economy since 1970
2. Measuring Output and National Income 2. GDP : One of the greatest
Tuesday, March 7, 2017
invention of 20th century
Sub-topic/ Issue covered : 3. What does Ebay get counted?
1.1. The long-run and short-run framework 4. A quiet revolution : Women
1.2. four phases of the business cycle joining the labor force

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 Week/ Date/ Module Activities Other Activities/Notes
1.3. how unemployment measured 5. Doe Unemployment Insurance
1.4. Relate the target rate of unemployment to potential Unemployment or only Protect
income the Unemployed?
1.5. Real and nominal inflation

2.1. GDP and its components

2.2. GDP Calculation
2.3. Net and Gross GDP
2.4. GNP and GDP
2.5. Real and Nominal GDP

Activity : Lecture and Class discussion

Learning Outcome : 4,5,6
Reading/ References : 2 (Ch. 24, 25), 4

Topic : Articles (CFO):

1. The Aggregate Demand/Aggregate Supply Model, 1. John Maynard Keynes
2. The Multiplier Model 2. The Politics of Cost of Living
Adjustment
Sub-topic/ Issue covered : 3. Behaviour Biases in Saving
1.1. The shape of the aggregate demand curve and what Behaviour
factors shift the curve 4. The Paradox of Thrift
Tuesday, March 14, 2017 1.2. The shape of the short-run aggregate supply curve 5. Simple Keynesian Aggregate
and what factors shift the curve Supply Curve
1.3. The shape of the long-run aggregate supply curve
1.4. The effects of shifts of the aggregate demand and
aggregate supply curves

2.1. Induced and autonomous expenditures

2.2. Use the multiplier equation to determine

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 Week/ Date/ Module Activities Other Activities/Notes
equilibrium income
2.3. How the multiplier process amplifies shifts in
autonomous expenditures
2.4. How fiscal policy can eliminate recessionary and
inflationary gaps

Activity : Lecture and Class discussion

Learning Outcome : 4,5,6
Reading/ References : 2 (Ch. 27, 28), 4

Topic : Articles (CFO):

1. The Financial Sector and the Economy 1. Dolphin Teeth as Currency
2. Monetary Policy 2. Prof Serebryakov makes an
Economic Error
Sub-topic/ Issue covered : 3. Losing Monetary Policy Financial
1.1. The Importance of Financial Sector in the Economy Control
1.2. Determining the long-term interest rate
1.3. Definition of money
1.4. Function of money
1.5. The alternative measures of money
Tuesday, March 21, 2017
1.6. The Money Creation Process
1.7. Simple money multiplier and the money multiplier
1.8. The motives of holding money and determining short-
term interest rate.

2.1. How monetary policy works in the AS/AD model

2.2. Money supply and open market operations
2.3. The Federal funds rate

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 Week/ Date/ Module Activities Other Activities/Notes
Activity : Lecture and Class discussion
Learning Outcome : 4,5,6
Reading/ References : 2 (Ch. 30, 31), 4

Topic : Articles (CFO):

1. Financial Crises, Panics, and Macroeconomics Policy 1. Bubbles or Rational Investors?
2. Deficits and Debt 2. Small Business and the Credit
Crunch
Sub-topic/ Issue covered : 3. Financial Reform Bill
1.1. Why economists worry more about the collapse of
the financial sector than the collapse of other sectors Class Discussion:
1.2. The three stages of a financial crisis Case Study: Greek Crisis : Tragedy or
1.3. How herding and leverage can lead to a bubble Opportunity
1.4. How extrapolative expectations can lead to bubbles
and depressions
1.5. Nonsystemic and systemic risk
Tuesday, April 4, 2017 1.6. The three stages by which an economy gets out of a
financial crisis
1.7. The importance of the moral hazard problem, the law
of diminishing control, and the bad precedent
problem

2.1. Deficit, surplus, and debt

2.2. Passive and structural deficit
2.3. Real and nominal deficits and surpluses

Activity : Lecture and Class discussion

Learning Outcome : 4,5,6
Reading/ References : 2 (Ch. 32, 34), 4

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 Week/ Date/ Module Activities Other Activities/Notes
Topic : International Financial Policy Articles (CFO):
1. The Composition of Trade Gap
Sub-topic/ Issue covered : 2. The Recession takes its Toll on
1. The balance of payments and the trade balance Trade
2. Four important fundamental determinants of 3. China Increased Flexibility
exchange rates
3. How a country influences its exchange rate by using Class Discussion:
monetary and fiscal policy 1. US Current Account Deficit
4. How a country stabilizes or fixes an exchange rate 2. Singapore Inc
Tuesday, April 11, 2017 5. Purchasing power parity and the real exchange rate 3. Japan Miracle
6. Fixed, flexible, and partially flexible exchange rates
7. The advantages and disadvantages of a common
currency

Activity : Lecture and Class discussion

Learning Outcome : 4,5,6
Reading/ References : 2 (Ch. 36), 4

Topic : Review on Indonesia

Sub-topic/ Issue covered : Challenges and Opportunities in
Indonesia
Tuesday, April 18, 2017 Activity : Class discussion
Learning Outcome : 4,5,6
Reading/ References : Mc Kinsey Report on Indonesia

LG/LO 6.1 assesment through Final

Tuesday, April25, 2017 Final Exam
Exam

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7. Assessment Summary
Table 4. Assessment summary and weight of <Courses Name>
WEIGHTING/ MARKED LEARNING
ASSESSMENT TASK DUE DATE
OUT OF OUTCOMES
4 March 2017
Mid Semester Test 30%/ 100 <1,2,3>
Week 8
30 April 2017
Final Examination 30%/ 100 <4,5,6>
Week 16

8. Grading Policy
1. Grading for this course is based on whether or not a students performance meets
the module standards for completion and proficiency in the subject materials.
2. Grading weight follows Table 5

Table 5. Grading Weight

Items Weight
Individual assignment, Group assignment, 40%
quiz, class participation
Mid Test 30%
Final Test 30%
TOTAL 100%

3. Student will be fail (grade E) when the attendance rate is <80% or find cheating in
class

9. Course Policy
1. In order to succeed, students are advised to do the followings:
- Allocate sufficient time for self preparation
- Discuss concepts and cases with their syndicate
- Elaborate practical cases apart from cases given
- Have a proper notes of all lecture
- Contribute actively in the class
2. Lecturer will not accept delays in the assignment submission
3. Students should always be prepared for an-announced quiz

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 4. Student will be fail (grade E) when the attendance rate is <80% or find cheating in
class

10. Lecture Profile

Name : Taufik Faturohman, PhD
E-mail : Taufik.f@sbm-itb.ac.id
Office : SBM ITB Building Room 202
Phone : 022-2531923 ext 202 : (office); 081224456965 (mobile)

Short Profile :
Taufik Faturohman is currently lecturer at the School of
Business and Management Institute of Technology
Bandung (SBM ITB). He received a PhD in Economics and
Finance from Curtin Business School, Curtin University of
Technology Western Australia. The title of his dissertations
is An Examination of the Growth of Islamic Banking in
Indonesia from 2003-2010. Taufik obtained his MBA from
ITB, and graduated with honor (cum laude). He earned a
Bachelor degree in Materials Engineering, also from ITB.
Taufiks research interests are Islamic banking, Islamic
finance, corporate finance, business risk management and
economics.

Time and Method of Consultation : By appoinment through SMS, Whatsapp or email

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