LEARNING OUTCOMES

The main learning outcomes of the course is the acquisition by the students of the fundamental concepts of economics and business organization, through which they can use in the future professional life the scientific knowledge obtained, applying it in the context of industrial production system.

AIMS AND LEARNING OUTCOMES

The aim of the course is to provide students with a general overview of the structure of enterprises in the manufacturing sector and with the basic financial issues that affect their business activities, with emphasis on investment projects and environmental compatibility.

Expected learning outcomes:
1. Evaluation of a company's economic and financial information
2. Evaluation of investment projects
3. Monitoring and management of industrial projects

PREREQUISITES

no prerequisite required

TEACHING METHODS

The entire program will be carried out during the lessons.

The notes relating to each lesson will be available on AulaWeb in collections of slides prior to the lesson itself.

SYLLABUS/CONTENT

A) The Enterprise system

1. Legal and technological-organizational structure

• Shareholders, Board of Directors, Management, Governance
• Analysis of the activities of a company

2. Business purposes

• Maximization of economic value
• The social responsibility policy

B) Determination of the production level

1. Elements of evaluation of the demand

2. Cost analysis

• Standardization, normalization and modularity
• Economies of scale and learning economies
• Fixed, variable and total costs
• Determination of the break-even point and elasticity analysis
• Cost estimation in the process industry

C) The logic of choices in production companies

1. Funding criteria and constraints

• The financial documents of the companies
• Growth strategies

2. Theory of investments and technological innovation

• Definition of Net Present Value, Discounted Cash Flow and Return on Investment
• Risk and uncertainty assessment

D) The business-environment relationship

1. Environmental externalities

• Examples of allocation of scarce natural goods
• Constraints on the level of pollution: command-and-control legislation and negotiable emission rights

2. Cost-Benefit Analysis

E) Project management

1. Techniques for monitoring results and budget

2. Quantitative tools

• Linear programming: simplex method
• Quadratic programming
• Mathematical programming with equality and inequality constraints
• Branch & Bound method for integer problems

Additional module for students with 6 credits

F) Elements of Theory of Value (2 credits)

• Valuation of bonds. Nominal, spot and forward rates.
• Value of the shares. Gordon model
• Financial analysis, financial documents, profitability, efficiency, risk, liquidity ratios.
• Risk analysis, efficient portfolios, optimal market portfolio, beta coefficient, CAPM.
• Role of corporate debt. Costs of financial distress and bankruptcy.
• Financial concepts of derivative products: futures, options, swaps.

RECOMMENDED READING/BIBLIOGRAPHY

G. Azzone e U. Bertelé – L’impresa- Sistemi di governo, valutazione e controllo- 5a Ed. –Rizzoli Etas, 2011

M. Peters, K. Timmerhaus and Ronald West - Plant Design and Economics for Chemical Engineers- 5a Ed. –McGraw-Hill Education, 2003

Notes of the lessons