18-602: Business Fundamentals

Category	Difficulty (out of 5)
Homework Assignments	2
Exams	3
Business Simulation Project	2
Product Launch Project	3

The course introduces a basic business management concepts and various business decision making frameworks, which will help in solving complex business problems. The areas of management covered are:

Area	Topics
Economics	Microeconomics, Macroeconomics
Accounting	Financial Accounting, Financial Statement analysis
Finance	Corporate finance
Marketing	Buyer Behavior models, Marketing Communications
Operations Management	Quality Management, Supply chain integration, Lean Manufacturing Techniques
Strategy	Strategy formulation and implementation fundamentals

• Two lectures per week.
• Both exams are take home.
• Grading will be based on assignments, exams, team's performance in simulation business challenge, final presentations and peer evaluation.
• This class is traditionally offered in Spring.

Course structure

1. Simulation Exercise:

• The simulation closely mirrors real-world business scenarios, allowing students to apply theoretical concepts in a dynamic and challenging environment.
• Encourage teams to collaborate and make decisions collectively, fostering teamwork and communication skills.
• Provides adequate resources and support for each team, ensuring they have the tools and guidance needed to navigate the complexities of running a simulated multinational manufacturing company.

2. Guidance:

• Regular check-ins with each team and coaching as needed helps ensure that students are on the right track and understanding the implications of their decisions.

3. New Product Launch Project:

• The self-formed teams for the new product launch project offer an opportunity for students to explore their interests and strengths.
• Emphasize the importance of market research, customer validation, and the iterative nature of product development.
• Professor guides students through the entire process, from problem definition to product launch, providing insights into the challenges and opportunities associated with bringing a new product to market.

4. Integration of Theory and Practice:

• Ensure that the theoretical concepts taught in lectures are directly applicable to the challenges presented in both the simulation and the new product launch project.
• Encourage students to reflect on how their theoretical knowledge informs their practical decision-making processes.

5. Real-world Relevance:

• Emphasize how the skills and experiences gained through the simulation and new product launch project are directly transferable to real-world business scenarios.
• Illustrates examples from industry to connect the classroom experience with practical business challenges.

Lectures

Taking into consideration the different backgrounds of the students in the lecture, the course is organized to start each topic with a gradual and accommodating introduction.

Overview of topics covered are:

1. Economics Topics

• Microeconomics – Text: Microeconomics and Behavior, Robert H Frank, 9th Edition, McGraw Hill
• Macroeconomics – No Text. Notes provided

2. Accounting Topics Text: Financial Accounting for MBA’s, Easton, Wild,Halsey, McAnally, 7th Edition CambridgeBusiness Publishers.

• Financial Accounting
• Financial Statement analysis

3. Finance Topics Text: Brealey and Myers, Principles of Corporate Finance 6th Edition; Ch 2,3,7,8.

• The time value of money and the Capital Asset Pricing Model
• Risk and portfolio theory
• Corporate finance - controller and treasury functions - Capital budgeting and capital structure.

4. Marketing Topics Text: Phil Cotler Principles of Marketing – Chapters 1,6,13.

• Buyer Behavior models
• Marketing Communications

5. Operations Management Topics Text: Chase, Jacobs, Aquilano; Operations Management For Competitive Advantage 10th Edition; Chapters 1,7,9,11

• Quality Management
• Supply chain integration
• Lean Manufacturing Techniques

6. Strategy Topics Text: Hill Jones; Strategic Management An Integrated Approach 8th Edition; Ch 5,6,7

• Strategy formulation fundamentals
• Strategy implementation fundamental

How to do well

• Pay attention to lectures and ask questions. Commonly, instructors in CMU take great interest in providing thorough responses and finds pleasure in engaging with the class.
• Have time to time group discussions about business strategies based on your simulation business performance and things taught in class.
• Have a lot of fun! I really enjoyed this course.