Modern Methods in Economic Decision-making
FP-merDEAcad. year: 2020/2021
The course is focused on the following areas: properties and characteristics of successful companies (Framework "7S" factors of successful businesses, case study: Businessman S. Walton - founder of Wall Mart stores). The influence of environment on the company. Basic principles of change processes of the company. Models of planned changes in the company (Levin model, Jaguar model, model Nokia). Change and risk. Types and risk analysis. Measurement of risk. Basic statistical characteristics of risk. Methods of reducing risk in management and its analysis (methods of removing the causes of risk, methods of reducing the effect of the risk). The basis of investment mathematics and methodology of investment decision. Reducing of the risk and evaluation of the investment in personal or corporate investment (case study). The risk connected with the change of the company's strategy including the methodology of the change strategy. Forecasting - tool for reducing the risk in the economic life of the company. Forecasting - tool to reduce risk in the economic life of the company. To acquaint students with selected advanced methods of analysis and economic modeling techniques (fuzzy logic, artificial neural networks, genetic algorithms) by explaining the principles of these theories and their subsequent application to managerial practice. The goal of the course is to familiarize students with some non-standard advanced methods of analysis and modeling techniques in economics and finance in the form of an explanation of the principles of these theories, to learn with these theories and their applications. The knowledge and skills obtain in the course will help to students obtain modern approach to the analysis and modeling of the national economy and private sector organizations, businesses, companies, banks, etc.
Learning outcomes of the course unit
Written project - creating a model of optimal time management
1. Critical analysis of selected problem (eg project management of production, the project of construction of the house, management of research, etc.).
2. Modeling of the project by suitable method of network analysis (CPM, PERT, etc.).
3. Finding the critical path and its managerial interpretation
4. Extending the duration of noncritical activities to become the part of the critical path, management discussion of this problem
5. Recommendations for the management, including the project risk policy
The subject knowledge on the MSc studies is requested.
Recommended optional programme components
Recommended or required reading
Lapin,L.: Quantitative Methods for Business Decisions. Brace Harcourt College Publishers, Toronto, Canada 1994. (EN)
Planned learning activities and teaching methods
Lectures, consultations in practice
Assesment methods and criteria linked to learning outcomes
1. Clear targeted analysis with conclusions
2. Management views and interpretations of the proposed solution form with the citation conditions.
The work does not exceed 20 pages (additional information can be inserted into Annex)
Language of instruction
Outline in accordance with the stated objectives
1. Critically analyze specific situation and propose appropriate decision-making methods
2. To acquaint students with advanced methods of management decisions.
3. Presentation of case studies for strategic decision of the management
Specification of controlled education, way of implementation and compensation for absences
concentration of PhD students, oral exam added by written project
Type of course unit
20 hours, optionally
Teacher / Lecturer