BUS401E Strategic Profitability Analysis

• Topics

  What is the profit potential of a firm, and how can we assess whether a firm is reaching its potential?

  This course is designed to equip students with essential managerial decision-making skills to address these core questions. Throughout the course, we will explore why the competitive environment is crucial for assessing the profit potential of both industries and individual firms. To this end, we examine methods for measuring and evaluating firm profitability using a combination of strategic, costing, and pricing analyses.

  After building a strong theory foundation, we will invite real companies to present real-life cases. For example, for this year's group assignment, we are collaborating with Fløibanen AS to analyze a real-world profitability case. A select number of groups will have the opportunity to present their findings at the top of Mount Fløyen. As the content of this course is highly applicable to practice, we focus on bridging the theory-practice gap by collaborating with firms from different industries.

  Although our focus is on profitability, we take sustainability considerations seriously in this course. We integrate ethics and sustainability into all aspects of our strategic profitability analyses and explore to what extent firms can "do well while doing good." By working on practical applications of profitability analysis, this course provides students with the opportunity to better understand the impact of ethical and sustainability considerations on managerial decision-making.

• Learning outcome

  Knowledge 

  Upon completion of the course, the student will

  • Understand why the competitive environment is crucial in assessing the profit potential of both industries and individual firms.
  • Understand which frameworks and analyses are appropriate for providing decision-makers with an accurate representation of profitability.
  • Understand how accounting and pricing analyses can be used to facilitate better managerial decision-making.
  • Know how ethical considerations influence a firm's profit potential. 

  Skills 

  Upon completion of the course, the student will be able to

  • Analyze the competitive environment to assess the profit potential of both industries and individual firms.
  • Apply theories for measuring and evaluating firms' profitability in light of their strategic positioning.
  • Identify and analyze relevant information to solve business problems
  • Integrate insights from behavioral research into the decision-making process in a business setting.
  • Assess the impact of ethical and sustainability considerations on managerial decision-making and profitability, and apply this understanding to real-world business scenarios.

  General competence  

  Upon completion of the course, the student will be able to

  • Exhibit critical thinking to analyze and evaluate complex business scenarios. 
  • Apply an interdisciplinary approach to decision-making, incorporating knowledge from multiple fields such as accounting, economics, and psychology.
  • Assess and weigh multiple considerations in a decision-making situations, including financial, ethical, and sustainability factors.

• Teaching

  The course is designed to provide a comprehensive understanding of managerial decision-making through a combination of lectures, case-based discussions, and practical skill development sessions.

  To facilitate such a learning environment, the lectures will generally not be recorded. However, students will have access to pre-recorded videos covering the more technical material of the course to ensure that students can fully engage with the course content. 

• Credit reduction due to overlap

  The course cannot be combined with the course BUS401N.

• Compulsory Activity

  Two approved course assignments: 

  • One individual assignment (written report) 
  • One group assignment (written report and selected groups present their work (2 to 4 candidates in each group)

  Compulsory activities (work requirements) in BUS401N are valid for BUS401E.

• Assessment

  5-hour individual digital school exam (English or Norwegian), with access to R/Excel.

• Grading Scale

  A-F

• Computer tools

  Some use of standard computer tools (e.g., Excel and Stata/R).

• Literature

  To be announced on Canvas

• Permitted Support Material

  All written support material permitted (category III), including course curriculum, other books, notes etc.

  Calculator.

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support materialhttps://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/