Faculty of Management
The Faculty of Management (FOM), Tribhuvan University has its ultimate objective of educating students for professional pursuits in business, industry, and government. It is further dedicated to contributing to an increase in the knowledge and understanding of business and public administration. FOM aims to develop networking with management institutes in the country and abroad to exchange new knowledge, technology, and methods of achieving higher level efficiency in the management of a business and public entities. It also aims to continuously innovate and promote cost-effective, socially relevant, modern technology-based educational programs in Nepal.
The FOM offers dynamic and cutting edge multidisciplinary disciplines such as Bachelor of Business
Administration (BBA), Bachelor of Information Management (BIM), Bachelor of Business Management (BBM),
Bachelor of Public Administration (BPA), Bachelor of Hotel Management (BHM), Bachelor of Travel and
Tourism Management (BTTM), Bachelor of Business Administration in Finance (BBA-F), Bachelor of Business Studies (BBS - 4 year annual system) , Post Graduate Diploma in Police Sciences (PGDPS), Master of Business Administration (MBA), Master of Business Administration in Information (MBA-IT), Master of Business Management (MBM), Master of Public Administration (MPA), Master of Hospitality Management (MHM, Master of Travel and Tourism Management (MTTM), Master of Business Administration in Global Leadership and Management (MBA-GLM), Master of Finance and Control (MFC), Master of Business Studies (MBS) and The FOM also offers Master of Philosophy in Management (M. Phil.) and doctoral program in management leading to a Degree of Doctor of Philosophy (Ph.D.)
FOM’s GOALS
- Prepare professional managers capable of handling business in a dynamic global environment.
- Produce socially responsible and creative entrepreneurs capable of promoting business and industry for the socio-economic development of Nepal.
- Conduct research and management development programs for updating the knowledge and skill base of academics and practicing managers.
- Innovate and promote management programs catering to the various social and economic sectors of Nepal.
- Establish linkages with leading universities and management institutes abroad and collaborate with them in program development and implementation.
Bachelor of Business Studies (BBS)
Programme Objective
The objective of the BBS program at the FOM is to develop students into competent managers for any sector of organized activity. The programme is based on the principle that graduates will spend a major portion of their life in a constantly changing environment. Therefore, the student should have an opportunity to obtain a broad knowledge of the concepts and reality-based skills underlying the operation and management of organizations. Upon graduation, students should be equipped to function as a manager in business, industry, and government. The graduate should also have a variety of career opportunities in different sectors of business including entrepreneurship and create much-needed jobs for others.
The BBS programme especially attempts to:
1. Equip the students with the required conceptual knowledge of business and administration to develop a general management perspective in them.
2. Develop required attitudes, abilities and practical skills in students, which constitute a foundation for their growth into competent and responsible business managers.
3. Encourage entrepreneurial capabilities in students to make them effective change agents in the Nepalese society.
4. Develop a necessary foundation for higher studies in management and thereafter take up careers in teaching, research, and consultancy.
Curricular Structure
The FOM recognizes the need for both breadth and depth in the total academic pattern. Therefore, the curriculum for BBS degree comprises four separate and distinct course components:
A strong foundation allied areas of business such as language, economic analysis, legal environment and quantitative method o prepare graduates to understand, analyze and comprehend the management concepts, theories and practices.
Core business studies encompassing and integrating all functional areas to provide graduates with an appreciation of the diversity and inter-relationship of business and management issues.
The opportunity to concentrate in one area of specialization such as accounting, finance, human resources management, and marketing in order to provide graduates with some degree of functional expertise.
Course Composition Compulsory Courses
MGT 201: Business English
MGT 202: Business Statistics
MGT 207: Microeconomics for Business
MGT 204: Business Law
MGT 205: Business Communication
MGT 209: Macroeconomics for Business
Core Courses:
MGT 211: Financial Accounting and Analysis
MGT 212: Cost and Management Accounting
MGT 213: Principles of Management
MGT 214: Fundamentals of Marketing
MGT 215: Fundamentals of Financial Management
MGT 223: Organizational Behavior & Human Resource Management
MGT 217: Business Environment and Strategy
MGT 224: Taxation in Nepal
MGT 225: Entrepreneurship
MGT 221: Business Research Methods
MGT 226: Foundation of Financial Systems
Concentration Area:
(Three courses from any one of the following five functional areas)
Accounting:
ACC 250: Accounting for Banking
ACC 251: Accounting for Business
ACC 252: Advanced Financial Accounting
ACC 255: Auditing
ACC 256: Advance Cost and Management Accounting
Finance:
FIN 250: Fundamentals of Corporate Finance
FIN 251: Commercial Bank Management
FIN 255: Management of Financial Institutions
FIN 253: Fundamentals of Investment
FIN 254: Insurance and Risk Management
Marketing:
MKT 250: Fundamentals of Selling
MKT 251: Customer Relationship Management
MKT 252: Foreign Trade and Export Management in Nepal
MKT 253: Fundamentals of Advertising
MKT 254: Fundamentals of Services Marketing
Management:
MGT 251: International Business
MGT 256: Small and Medium Enterprises
MGT 257: Event Management
MGT 258: Project Management
MGT 259: Technology & Information Management
The First Year Programme
The purpose of the first-year programme is to build a strong foundation in students to prepare them to comprehend the business concepts, theories, and practices. The first-year programme is organized into the following compulsory and core courses:
First Year (500):
| Subject Code and Subject | Full Marks |
| MGT 201: Business English | 100 |
| MGT 202: Business Statistics | 100 |
| MGT 207: Microeconomics for Business | 100 |
| MGT 211: Financial Accounting and Analysis | 100 |
| MGT 213: Principles of Management | 100 |
The Second Year Programme:
The purpose of the second-year programme is to provide basic concepts, tools, and understanding of the foundation and core courses. The foundation's courses are required to develop understand business practices. The core courses provide essentials of learning which are basic in the broad area of business studies. The second-year programme is therefore organized into the following core and compulsory courses:
Second Year (500):
| Subject Code and Subject | Full Marks |
| MGT 205: Business Communication | 100 |
| MGT 209: Macroeconomics for Business | 100 |
| MGT 212: Cost and Management Accounting | 100 |
| MGT 223: Organizational Behavior & Human Resource Management | 100 |
| MGT 215: Fundamentals of Financial Management | 100 |
The Third Year programme:
The purpose of the third-year programme is to provide basic concepts, tools, and understanding of the fundamentals of business studies. The core courses provide essentials of learning which are basic to understand the broader areas of business studies. The third programme is therefore organized into the following core and compulsory courses:
Third Year (500):
| Subject Code and Subject | Full Marks |
| MGT 204: Business Law | 100 |
| MGT 226: Foundation of Financial Systems | 100 |
| MGT 217: Business Environment and Strategy | 100 |
| MGT 224: Taxation in Nepal | 100 |
| MGT 214: Fundamentals of Marketing | 100 |
The Fourth Year Programme:
In the fourth year, the students are encouraged to focus on a particular function and concentration area of business studies. Building on the foundation laid in the first, second and third years, the principal mission of the fourth year twofold:
i) To enable the students to concentrate on one functional area of business. FOM offers four-stream of concentration courses: a) Accounting
a) Finance
b) Management
c) Marketing
ii) To provide an opportunity for students to engage in research and final project presentation.
Fourth Year (500):
| Subject Code and Subject | Full Marks |
| MGT 225: Entrepreneurship | 100 |
| Concentration I | 100 |
| Concentration II | 100 |
| Concentration III | 100 |
| MGT 221: Business Research Methods | 50 |
| MGT 401: Final Project | 50 |
Eligibility Conditions for Admission:
The candidate applying for admission to the BBS programme:
1. Must have successfully completed the 10+2 in business/ commerce or an equivalent course from a Higher Secondary School Board or from Tribhuvan University or from other University/ Board recognized by T.U
2. Must satisfy any other entry requirements or criteria as prescribed by the Faculty Board or the campus.
Final Project Work:
The education of future managers will be incomplete without exposure to organizational reality. Therefore, the final project work is made an essential academic requirement for the fourth year students in all concentration courses. To write project work students will undergo fieldwork and spend four weeks studying and learning from the organization during the time fixed by the campus/college. After the fieldwork, the student will write a project report on the format prescribed by the FOM and submit it to the college/campus for evaluation. The student may also be asked to present the report to the general class and/ or faculty members. The evaluation of the report will be made by a team of external and internal examiners appointed by the Research Committee of the respective campus/ college. The final viva-voce examination will be conducted by the Research Committee of the concerned campus/ college. After the completion of the project report will be submitted to the Office of Controller of examinations (Balkhu) for final scrutiny.
A student will have to pass the theoretical, practical and project work examinations separately in all the courses having theoretical, project work and or practical components.
Minimum General Requirements:
The minimum general requirement for the 4 - year BBS programme are as follows:
1. An academic year will consist of a minimum of 150 teaching days excluding the days taken for admission and annual examinations.
2. The total instructional hours in an academic year will be 615 (150 days *4:10 hours a day.
3. A paper of 100 marks will have 150 lectures each of 50 minutes. However, for practical works, extra class hours will be required as fixed by the Faculty Board.
4. There will be a minimum of five periods (i.e class hours) each teaching day. The campus/college running morning or evening shifts will also be required to meet this minimum class requirement.
Attendance, Evaluation and Grading System:
The final evaluation of students is done through the annual examination conducted by the office of the Controller of Examinations, Tribhuvan University. However, for qualifying to appear in the annual examinations, students must meet the following requirements:
1. The student must have a minimum of 70 percent attendance of the classes actually held.
2. No student will be allowed to appear in the second year final examinations without first appearing in the first year final examinations.
The grading system in the annual examinations is as follows:
|
Third Division |
35 percent |
|
Second Division |
45 percent |
|
First Division |
60 percent |
|
Distinction Division |
75 percent |
Methods of Instruction:
The campuses offering the BBS programme should use the methods of instruction which help prepare the student for the realities of Nepalese business, industry, and government in which he/she has to work. A combination of lecture, group discussions, problem- solving exercises, guest lectures, practical work, and project work will be used as approaches to learning. The campuses are also encouraged to use the case method of instruction whenever required and wherever possible.
Graduation Requirements:
The BBS programme extends over four academic years and the BBS degree is awarded on its successful completion. All candidates for a BBS degree must fulfill the following requirements:
1. The successful completion of 19 courses of 1950 marks and submit a final project report of 50 marks as prescribed with passing grades in all the courses.
2. The passing scores obtained in all theory and practical components of the courses separately.
3. Completion of courses for the fulfillment of the BBS programme must occur within the time limit as prescribed by Tribhuvan University.
MGT 213: Principles of Management
Level: Bachelor of Business Studies
Year: First
Nature of the Course: Core
Full Marks: 100
Pass Marks: 35
Lecture hours: 150 Course Objectives
This course aims to impart the basic management knowledge and skills to the students so as to enhance their managerial capabilities and enable them to apply in the practical field. The course provides comprehensive knowledge to students about the organization and helps them understand the major functions, principles, and techniques of management.
Learning Outcomes
Upon successful completion of this course, students will be able to:
- Understand what management is and why it is important
- Have developed a working knowledge of fundamental terminology and frameworks in the functions of management
- Be able to identify and apply appropriate management techniques for managing contemporary organizations
- Have an understanding of the skills, abilities, and tools needed to obtain a job on a management track in an organization of their choice.
- Understand the changes in theories about how managers should behave to motivate and control employees
Course Description
This course contains the Nature of Organizations, Introduction to Management, Management History and Current Thinking, Environmental Context of Management, Planning and Decision Making, Fundamentals of Organizing, Leadership and Motivation, Fundamentals of Influencing and Communication, Control and Quality Management, Managing in Global Arena, Management Trends and Scenario in Nepal.
Course Details
Unit 1: The Nature of Organizations - 15 Hrs.
Concept of the organization; Organizational goals: concept, purposes, and types; Features of effective organizational goals; Goal formulation: processes and approaches; Goal succession and displacement; Problems of goal formulation; Changing perspectives of the organization.
Unit 2: Introduction to Management - 10 Hrs.
Management: definition, characteristics, functions, principles; Managerial hierarchy; Types of managers; Managerial skills and roles; Management Careers; Emerging challenges for management.
Unit 3: Management: History and Current Thinking - 15 Hrs.
Classical Theory: introduction, contribution, and limitation; Human relations and Behavioral science theories; System Theory; Decision Theory; Management Science Theory; Contingency Theory; Emerging Management Concepts: workforce diversity, outsourcing, knowledge management, learning organization.
Unit 4: Environmental Context of Management - 16 Hrs.
Concept of Business Environment; Types of Business Environment: internal and external. Basic Components of External Environment: economic, socio-cultural, political, and technological; Environmental Scanning: concept and methods; SWOT analysis; Social Responsibility of Business: concept and approaches; Areas of Social Responsibility. Business Ethics: meaning and significance; Emerging Business Environment in Nepal.
Unit 5: Planning and Making Decisions -20 Hrs.
Planning: concept, types, process and importance; Strategic Planning: fundamentals of strategic planning; Tactical Planning: comparing and coordinating strategic and tactical planning; The Planning and Levels of Management; Decision Making: meaning, types, approaches and process; Decision making under conditions of certainty, risk and uncertainty; Group Decision Making: advantages and process; Elements of Decision Situation; Management by Objectives (MBO): factors necessary for a successful MBO program.
Unit 6: Fundamentals of Organizing -18 Hrs
Organizing: concept, principles, and process; Approaches to Organizing: classical, behavioral, contingency. Departmentalization: meaning and types; Delegation of Authority: meaning, steps, obstacles; Eliminating Obstacles to the Delegation Process; Centralization and Decentralization: meaning, advantages, and disadvantages; Concept of Organic and Mechanistic Views of Organization;
Organization Architectures: vertical differentiation (tall versus flat hierarchies), horizontal differentiation (functional structure, multidivisional structure, geographic structure, and matrix structure); Modern Organizational Structures: team, network, and 360-degree structure.
Unit 7: Leadership and Motivation - 22 Hrs.
Leadership: Concept, functions, styles; Approaches to Leadership: trait, behavioral, and situational; Leadership Today: transformational, coaching, entrepreneurial leadership; Leadership Situations and
Decisions; Team Management; Conflict: meaning and types; Managing Conflicts in Organization;
Motivation: concept and process; Theories of Motivation: need hierarchy and motivation-hygiene; Strategies for Motivating Employees;
Unit 8: Fundamental of Influencing and Communication -8 Hrs.
Influencing: concept and fundamentals; Influencing people; Influencing subsystem; Communication: concept, structure, and process; Types of Communication: formal and informal, Interpersonal and nonverbal communication in an organization; Barriers to Effective Communication; Enhancing Effective Communication.
Unit 9: Control and Quality Management - 11Hrs
Control Systems: concept, process, types, and characteristics of an effective control system; Potential Barriers to Successful Controlling; Quality Control Systems; Total Quality Management (TQM): concept and tools; Deming Management: principles and techniques; The Quality Improvement Process;
Unit 10: Managing in the Global Arena - 8 Hrs
Globalization: concept, effects; Fundamentals of International Management; Multinational Companies: meaning, types, advantages, and disadvantages; Digital dimensioning and Planning, Organizing, Influencing, and Controlling.
Unit 11: Management Trends and Scenario in Nepal -7 Hrs
Growth of Business Sector in Nepal; Major Industries in Nepal: manufacturing, export-oriented, import-substitution, and service sector; Existing Management Practices and Business Culture in Nepalese Organization; Major Problems of Businesses in Nepal.
Suggested Reading:
Griffin, Ricky W., Management, AITBS Publishers and Distributors, Delhi.
Samuel C. Certo, Modern Management, Prentice Hall of India, Delhi
Charles W.L. Hill and Steven L. McShane, Principles of Management, Tata Mc-Graw-Hill Company, New Delhi
Robins, Stephen P., and Coulter, Mary, Management, Prentice Hall of India.
James, Stoner, AF, Freeman, Edward, R. and Gillbert, R., Jr. Daniel, Management¸Pearson, India.
Pant, P.R., Principles of Management, Buddha Publication Pvt. Ltd., Nepal
Chalise, M. and Gautam, P. K., Principles of Management, KEC Publication and Distribution Pvt. Ltd., Nepal
Business English-I
Level: BBS First Year
Course No.: MGT: 201
Nature of the Course: Compulsory English
Lecture hours: 150
Full Marks: 100
Pass Marks: 35
Course Description
This course, through a spotlight on building business language competence and improving reading and writing skills, helps students become successful communicators in business situations. It makes use of the three-pronged approach to enable them to hone their grammar and mechanics, and critical reading and writing skills.
Objective:
The objective of this course is to help students use their general English skills in interdisciplinary contexts with lessons covering vocabulary and grammar exercises. It also aims to broaden students' literary readings in order to enrich their linguistic competence, comprehension ability, writing, and presentational skills in a business domain.
Course Outcome:
The following objectives specify that the business students, at the conclusion of the course, should be able to:
- improve linguistic competence at lexical, structural/ grammatical levels
- comprehend literary texts and writing modes
- produce correct sentences, cohesive paragraphs, and organized texts
- respond to the literary and business readings critically and analytically
- boost competence towards global understanding thereby strengthening their confidence in using English in professional and social scenarios
Unit 1: Grammar and Writing Mechanics -15 marks (22 Hrs.)
Sentences: Elements, Varieties, Patterns, Types, Faults; Nouns, Pronouns, and Antecedents; Verbs, Tenses, Subject-Verb Agreement; Modifier and Connector: Modifiers, Prepositions, Conjunctions; Mechanics: Punctuation, Capitalization, Numbers
Unit 2: Using the Business language - 5 marks (7 Hrs.)
Fundamentals of language; Language and Meaning; Language, Society, and Culture; Stylistic Features; Functions of Language Using Language Effectively; Strong Words; Coherent Paragraphs; Commonly Confused Words
Unit 3: Business Vocabulary - 5 marks (7 Hrs.)
Importance of Business vocabulary; Vocabulary in Use; Business Specific Terminologies, Idioms, and Expressions; Vocabulary in Communication Situations; Vocabularies in Writing Situation; Vocabularies in Speaking Situation; Ways to Improve Business Vocabulary
Unit 4: Business Communication Messages - 5marks (7 Hrs.)
Written; Oral; Visual Messages; Electronic Messages; Nonverbal messages
Unit 5: Business Writing - 15 marks (22 Hrs.)
Brochures: Guidelines and Instructions; Media Stories, Releases, and Advertisements: Media Stories, News Reports; Articles and Stories; Broadcasting Stories; Press Releases; Effective Media Relations; Advertisements
Unit 6: Reading Strategies and Writing Process - 25 marks (40 hrs.)
Reading to Write: Becoming a Critical Reader; Brent Staples. “Cutting and Pasting: A Senior Thesis”; Note-Making; Summarizing; Invention; Arrangement; Drafting and Revising; Editing and Proof Reading; Paragraph Writing.
Unit 7: Patterns of Writing - 30 marks (45 Hrs.)
Narration: Sandra Cisneros: “Only Daughter”; Bonnie Smith-Yackel: “My Mother never Worked”; Description: Jhumpa Lahiri: “Rice”; Heather Rogers: “The Hidden Life of Garbage”; Cause and Effect: Stan Cox: “The Case against Air Conditioning”; Lawrence Otis Graham: “The ‘Black Table’ is Still There” Comparison and Contrast: Bharati Mukherjee: “Two Ways to Belong in America”; Amy Chau: “Why Chinese Mothers are Superior” Definition: Judy Brandy: “I want a Wife”; Gayle Rosenwald Smith: “The Wife-Beater”; Argumentation: Alex Tabarrok: “The Meat Market”; Daniel Engber. “Let them Drink Water!”
Prescribed Books:
Kirszner, Laurie G. & Stephen R. Mandell (2012). Patterns for College Writing: A Rhetorical Reader and Guide. Boston: Bedford/St. Martin’s, Holmes, H.I. (2019). English for Business Studies. Kathmandu: Buddha Publications
Suggested:
Tickoo, Champa & Jaya Sasikumar (1979). Writing with a Purpose. New Delhi: Oxford.
Guffey, Mary Ellen & Carolyn M. Seefer (2011). Business English. Ohio: Cengage Learning. Oxford Business English Dictionary for Learners of English. Oxford: OUP.
MGT 202: Business Statistics
Nature of Course: Compulsory
Full Marks:100
Level: Bachelor BBS
Pass Marks:35
Year: First
Lecture Hours:150
Course objective:
The basic objective of this course is to provide students an understanding of concepts of business statistics and to acquaint the students with necessary statistical and mathematical tools and techniques to be used in business decision-making processes.
Course Description:
This course comprises an introduction to statistics, classification, and presentation of data, measures of central tendency, measures of dispersion, Skewness, kurtosis and moments, simple correlation and regression analysis, analysis of time series, index numbers, probability, sampling and estimation, quantitative analysis, determinant, and matrix.
Learning outcomes:
On the completion of this course, students will be able to:
- classify, present and analyze the business and management-related data.
- interpret the data from the management perspectives.
- apply forecasting techniques in business and management.
- use quantitative techniques in different decision-making environments.
- apply the tool for cause and effect relationship in managerial decisions.
Course Details Unit 1: Introduction to Statistics - 5 LHs
Meaning, scope, and limitation of statistics; Importance of statistics in business and management; Types and sources of data; Methods of collection of primary and secondary data; Precautions in using secondary data; and Problems of data collection.
Unit 2: Classification and Presentation of Data - 5 LHs
Data classification: meaning, need, objectives and types of classification; Construction of frequency distribution and its principles; Presentation of data: tabular presentation, diagrammatic presentation: bar diagram, Pie diagram, graphic presentation: histogram, frequency polygon, frequency curve, and ogive.
(Illustrations related to Business and Management).
Unit 3: Measures of Central Tendency - 15 LHs
Mean: simple and weighted (Arithmetic Mean, Geometric Mean, and Harmonic Mean); Median; Partition values; Mode; Properties of averages; and Choice and general limitations of an average.
Unit 4: Measures of Dispersion - 15 LHs
Absolute and Relative measures; Range; Quartile deviation; Standard deviation; Coefficient of variation; and Lorenz curve.
Unit 5: Skewness, Kurtosis, and Moments - 15 LHs
Meaning, objective and measurement of Skewness; Karl Pearson’s and Bowley’s methods; Five number summary; Box-Whisker Plot; Kurtosis and its measurement by Percentile method; Meaning of moments; Central and raw moments and their relationship; and Measurement of Skewness and Kurtosis by the method of the moment.
Unit 6: Simple Correlation and Regression Analysis -15 LHs
Karl Pearson’s correlation coefficient including bi-variate frequency distribution; Coefficient of determination; Probable Error(P.E.); Spearman’s rank correlation coefficient; Concept of linear and non-linear regression; Simple linear regression equations including bi-variate frequency distribution; and Properties of regression coefficients.
Unit 7: Analysis of Time Series -15 LHs
Meaning, need and components of time series; Measurement of the trend: semi average, moving average, method of least squares; Measurement of seasonal variation: method of simple average and ratio to moving average (only quarters).
Unit 8: Index Numbers -15 LHs
Meaning and types of Index Number; General rule and problems in the construction of index number; Methods of constructing index numbers: simple and weighted (aggregative and an average of price relative method), Laspeyre’s index number, Paasche’s index number, Fisher’s ideal index number; and Time and factor reversal tests.
Cost of living index number (or Consumer’s price index number): aggregative expenditure method and family budget method; and Base shifting and deflating.
Unit 9: Probability -15 LHs
Definition of probability; Addition and multiplication theorem; Application of combination rule in probability; and Conditional probability.
Unit 10: Sampling and Estimation - 5 LHs
Meaning of sample and population; Census versus sampling; Sampling techniques; Concept of sampling distribution; Standard error; Estimation: estimator, the concept of types of estimates: Point and Interval estimates.
Unit 11: Quantitative Analysis - 15 LHs
Introduction to Quantitative Analysis; Application of management science: a scientific approach to decision making; Decision making under the condition of uncertainty: maximax (optimism), maximin(pessimism), minimax regret;
Decision making under risk: Expected Profit (EP) Or Expected Monetary value (EMV), Expected Profit with perfect Information (EPPI), Expected Value of Perfect Information (EVPI); Linear Programming Problem (LPP): Problem formulation with two decision variables, graphical solution of maximization and minimization problems.
Unit 12: Determinant - 10 LHs
Definition of determinant; Methods of finding the numerical values of determinant up to three orders; Properties of determinant and its use to find the numerical values of determinants; and Cramer’s rule to solve simultaneous equations up to three variables.
Unit 13: Matrix 10 LHs
Definition and types of Matrix; Addition, subtraction, and multiplication of matrices; Cofactors; Transpose; Adjoint and inverse of a matrix; Matrix method to solve simultaneous equations up to three unknown variables.
Note: Illustrations and applications in all chapters should be based on the Business and Management situation as far as possible.
Suggested Readings:
Gupta, S.C., Fundamentals of Statistics for Management, Mumbai: Himalayan Publishing House.
Tulsian, P.C. & Pandey, Vishal, Quantitative Techniques: Theory and Problems, New Delhi: Pearson Education.
David, M.. Levine, Timothy, C. Krehbiel, & Mark, L. Berenson, Business Statistics A first course, USA: Prentice-Hall.
Gupta, S.P., Statistical Methods, New Delhi: Sultan Chand and Sons.
Levine, Richard I, and Dabid S. Rubin, Statistics for Management, New Delhi: Prentice-Hall of India Pvt. Ltd.
Aitken ,A.C. , Determinant and Matrices, UK: Amazon.
MGT 203: Microeconomics for Business
Level: Bachelor's: Full Marks:100
Nature of the Course: Compulsory
Pass Marks: 35
Program: BBS
Lecture Hours: 150
Course Objectives:
This course aims to enhance the understanding of microeconomic theories and their practical applications by developing students’ skills in the application of theories in business decisions making.
Course Description:
This course comprises an introduction to microeconomics, market equilibrium and efficiency, the elasticity of demand and supply, analysis of consumer behavior, a theory of production, cost and revenue curves, product pricing theories and practices and factor pricing.
Learning Outcomes:
By the completion of the course students will be able to:
- Explain the nature and scope of microeconomics and business economics.
- Explain the concept of market equilibrium and efficiency and to analyze the effect of change in market demand market supply to the market equilibrium and efficiency.
- Define and measure the elasticity of demand and supply, their applications and uses in business decision making.
- Analyze the consumer's behavior, derivation of the demand curve for normal goods by using both cardinal and ordinal approach.
- Explain the single variable and the multi-variable production functions and determination of the optimal combination of two inputs.
- Acquire knowledge about the concept and nature of cost and revenue and to derive costs and revenue curves.
- Explain the pricing of the products and the inputs under different market structures.
Course Details:
Unit 1: Introduction - 15LHs
Microeconomics: meaning, scope, uses and limitations of microeconomics; Business economics: nature and scope; Basic concepts: production possibility curve, marginal analysis, incremental analysis, static and dynamic equilibrium analysis in microeconomics; and Ten principles of economics.
Unit 2: Market Equilibrium and Efficiency - 20 LHs
Demand function: types, determinants of demand, movement and shift in demand curve; Supply function: types, determinants of supply, movement and shift in supply curve; Market equilibrium; Effect of changes in demand and supply on market equilibrium; Effect of government policy (Tax, subsidy and price control) in market equilibrium; Concept of market efficiency; and Measuring market efficiency by consumer's surplus and producer's surplus.
Unit 3: Elasticity of Demand and Supply - 20 LHs
Price elasticity of demand: concept, degree and calculation (percentage/proportionate and average method); Point price elasticity of demand; Price elasticity and total expenditure; Income elasticity of demand: concept, degree and calculation (percentage/proportionate and average method); Cross elasticity of demand: concept, degree and calculation (percentage/proportionate and average method);; Concept of advertisement elasticity of demand; and Uses of price, income, cross and advertisement elasticity of demand; and Price elasticity of supply: concept, degree and calculation (percentage/proportionate and average method)
Unit 4: Analysis of Consumer's Behavior -20 LHs
Cardinal approach: assumptions, consumer's equilibrium, criticisms and derivation of demand curve; Ordinal approach: assumptions and properties of Indifference curve; Marginal rate of substitution; Price line; Consumer's equilibrium; Price effect and derivation of price consumption curve (normal goods and Giffen goods); Income effect and derivation of income consumption curve (normal and inferior goods); Substitution effect; Decomposition of price effect into income and substitution effect; and Derivation of demand curve for normal goods.
Unit 5: Theory of Production -15 LHs
Production function: Short-run and Long-run production functions; the concept of Cobb-Douglas production function; Law of variable proportions; Isoquant: assumptions, the marginal rate of technical substitution and properties; Iso-cost curve; Optimal employment of inputs; and Laws of return to scale.
Unit 6: Cost and Revenue Curves -20 LHs
Cost function; Concept of costs: Implicit cost and explicit cost, accounting cost and economic cost, historical cost and replacement cost, separable cost and common cost, opportunity cost; Short-run costs: cost-output relationship; derivation of short-run total cost curves and their relationship; derivation of short-run average and marginal cost curves and their relationship; Reason for the U-shaped of short-run average cost curve; Relationship between AC and MC curves; Long-run costs: derivation of long-run average and marginal cost curves; Reason for the U- shaped, L- shaped and continuously falling long-run average cost curve; Economies of scale; and Concept of economies of scope. Revenue: revenue function; Revenue curves under perfect and imperfect competition market; Relation between average and marginal revenue curves; and Relationship between price elasticity of demand and revenue.
Unit 7: Product Pricing Theories and Practices - 25 LHs
Market structure: concept and characteristics; Profit maximization goal of a firm; Price and output determination under perfect competition: short-run and long-run equilibrium; Derivation of the short-run supply curve of a firm and industry; Price and output determination under monopoly: short-run and long-run equilibrium; economic effects of monopoly. Price and output determination under monopolistic competition: short-run and long-run equilibrium, monopolistic firm's equilibrium under product variation and selling expenses. Concept and types of the cartel; Pricing under joint profit maximization cartel; and Pricing practices: price discrimination, cost-plus pricing, incremental cost pricing, administered pricing, export pricing, predatory pricing, skimming pricing and penetration pricing.
