YALE SCHOOL OF MANAGEMENT
COURSES:

☆MGT 510 Data Analysis and Statistics
Edward Kaplan, Dick Wittink, Ramesh Arjunji
The objective of this course is to develop students' technical skills and intuition for extracting information from data sets. Emphasis will be placed on the use of this information for structuring managerial decisions. Methods for summarizing and presenting data, testing hypotheses, and examining relationships between variables will be covered. The course is heavily oriented toward interactive computing. (4 units)

☆MGT 520 Economic Analysis
Meghan Busse, Katherine O’Regan, Sharon Oster
This course concentrates on the role of markets and other forms of organizations in determining the opportunities facing individuals and business firms, the policy issues facing public officials, and the patterns of resource allocation in the economic system. Topics include analysis of competitive markets, firm behavior and the theory of profit, and problems of microeconomic policy design. The course is intended to be at a level accessible to students with little or no prior exposure to economics. (4 units)

☆MGT 550 Marketing Management
Ramesh Arjunji, Tina Kiesler
This course presents the basic concepts of marketing required to formulate sound marketing strategies and understand the many marketing functions in an organization. Topics include consumer behavior, market segmentation, product planning, international marketing, pricing strategies, distribution strategies, sales force management, advertising and promotion decisions, and issues of corporate responsibility and ethics in marketing. The course consists of readings, cases, lectures, class discussion, and presentations by outside speakers. Course requirements include midterm and final examinations, several written cases, and periodic written assignments. (3 units)

☆ MGT 698 Environmental Management and Strategy
Marian Chertow
This course focuses on understanding how adroit environmental management and strategy can enhance business opportunities and reduce environmental impact. The course seeks to analyze under what circumstances different competitive approaches are likely to be successful and to increase knowledge of programs, structures, and tools of environmental management. The course combines weekly lectures and class discussions on theory with sessions involving tools and applications.

☆ MGT 870 Fundamentals of Accounting
Rick Antle, Stanley Garstka
Accounting systems provide financial information useful in managing, valuing and regulating all types of organizations around the globe. Despite their many differences, all accounting systems are built on a common foundation. They use economic concepts such as assets, liabilities, and income to convey financial information. They use the double entry system of debits and credits to accumulate and organize financial data. The purpose of this course is to provide these fundamentals of accounting. Prerequisite: Robert Anthony's workbook, Essentials of Accounting. Section assignments will be made on the basis of the student's prior background in accounting and performance on a screening exam. (2 units)

☆ MGT 880 The Strategic Environment of Management
Doug Rae, Theodore Marmor, Paul Bracken
A survey of governmental, civil, and economic institutions which define the major opportunities and risks available to senior management. These include national governments, central banks, regulatory agencies, the joint stock corporation, equity markets, labor unions, non-profits, and international regimes. Particular attention to issues of conflict and stability in the political environment of business. Emphasis on major capitalist democracies and selected emerging market systems. Case materials will form the basis of group projects. (2 units)

☆ MGT 885 Foundations of Teams
Victor Vroom
As organizations adapt to rapid change, teams are replacing individuals as their basic building blocks. This course will deal with the skills and concepts relevant to team leadership and membership. Our pedagogy will be highly experiential. Teams will be created at the first meeting of class and will work together throughout the course on a range of simulations and exercises designed to illuminate critical team dynamics and help students develop skills for working effectively in teams. (2 units)

☆ MGT 890 Valuation and Investment
Geert Rouwenhorst, Matthew Spiegel
Valuation and Investment is an introduction to the basic theory and methods of Finance. Students apply the principles of Finance to decisions faced by corporate managers as well as by individual and institutional investors. The course develops the concept of Net Present Value through the discounting of future cash flows. Students use the Net Present Value rule to solve problems of capital budgeting and project selection, as well as to the valuation of financial instruments such as perpetuities, annuities, stocks and bonds. The course teaches the basics of asset allocation through an introduction to the principle of diversification. It presents the foundations of modern portfolio theory, together with new developments in capital market research, including such topics as arbitrage and the impact of information on financial markets. The material is presented in lecture format, with weekly problem sets, two cases and TA review sessions. Part one of a non-divisible sequence with MGT 891, Corporate Finance and Options; together they constitute the core course in Finance. (2 units)
Elective Courses

☆ MGT 521 Macroeconomic Analysis
Andrew Bernard
The goal of this course is to develop a framework for understanding the current state of the economy and for interpreting macroeconomic events around the world as they occur. The objective is not to produce more macroeconomists, but instead to give students the tools necessary to evaluate the opinions and forecasts of others. In particular, by the end of the semester, students should be able to successfully navigate the minefield of contemporary business reporting on macroeconomics. We will begin by defining the major macroeconomic variables and the basic national accounting identities. From there we will look one by one at the behavior of all the players in the economy: households, firms and the government. Next we will explore how these players interact in different markets and then how the markets themselves are linked. This will yield a closed and logically consistent system to examine the effects of various shocks which in turn will help us understand the dynamics of short term macroeconomic movements, or business cycles. Throughout the course we will try to match the models with historical and current evidence to gauge where it succeeds and where it fails. Examples of macroeconomic topics that have been covered in the recent past are: the causes and consequences of the low US savings rate, the "new" economy, the productivity slowdown (real or data illusion?), the importance of the ongoing current account deficit, the East Asian "miracle," and the East Asian crisis. Topics this session may be different. (4 units)

☆ MGT 525 Competitive Strategies
Meghan Busse, Fiona Scott Morton
The aim of this course is to develop students' abilities to think critically and insightfully about the strategic decisions firms face. As the semester progresses, the course will move from considering overarching decisions about competitive advantage, to major strategic moves such as entry and diversification, to specific strategies firms employ in their interactions with each other. At all levels, the emphasis will be on strategies that are responsive to the characteristics of the firm and the competitive environment in which it operates. The primary analytical framework for the course is economics. Class sessions are a mixture of case discussions and lectures. Students are expected to contribute to the intellectual exchange in class through both discussion and presentation. Assignments include written case analyses and an individual project. Prerequisite: Economic Analysis or equivalent preparation in economics and data analysis. This course is intended for second-year MGT students, and it will be assumed that students have a strong background in core curriculum subjects. (4 units)

☆ MGT 525 Competitive and Cooperative Strategies
This course analyzes the strategic choices of organizations. Case studies include nonprofit as well as for-profit organizations, with a focus on strategy at the individual business level. Though often compared to a game like chess, business strategy is different. To win at chess, someone else has to lose. In business, success doesn’t require others to fail. Furthermore, people can play chess, but they can’t change it. In business, people are free to change the players, rules, boundaries, and more. Actively shaping the game is the essence of successful business strategy. This course provides a map, method, and mindset for changing the game of business. Behind this approach is a unifying theory, namely Game Theory. Case discussions and lectures. Oral and written presentations of cases are the classroom responsibility of those taking the course. Assignments include essays, case memos, analytical exercises, and a substantial project. Readings include Porter, Oster, Hammer and Champy, Hamel and Prabhala, and the current work of Brandenburger and Nalebuff. Prerequisite: Economic Analysis or equivalent preparation in economics and data analysis. It is assumed that students have a strong background in core curriculum subjects. Preference given to second-year SOM students. Enrollment limited to 50 students. (4 units) Not offered in 1999-00.

☆ MGT 528 The Environment: Public and Private Management
This course surveys management issues related to the environment in the private, nonprofit, and public sectors. The course relies on a mixture of lectures and case studies to introduce students to topics in the areas of management programs, regulation, strategy, and public policy. Students will be expected to write papers on areas of interest to them. (4 units) Not offered in 1999-00.

☆ MGT 541 Corporate Finance II
Roger Ibbotson, Arturo Bris
This course focuses on financial management from the perspective of inside the corporation or operating entity. It builds upon the concepts from the core finance courses, using lectures to develop the theory, and cases and problem sets to provide applications. The cases cover the private sector, the public sector, and their interface, especially in regard to regulations and taxation. The major topics of the course are: (1) cash flows and value, (2) capital structure, (3) cost of capital, (4) capital budgeting and operating decisions, and (5) mergers, acquisitions, and restructuring. Prerequisites: Data Analysis and Statistics, Valuation and Investment/Corporate Finance and Options. (4 units)

☆ MGT 542 International Finance
Geert Rouwenhorst
The course provides an introduction to international financial markets and corporate decision-making in an international context. The first part of the course develops a measure of exchange rate risk, and provides an overview of international financial markets, and the principal contracts traded on these markets: spot and forward contracts on currencies, international bonds, currency swaps, and currency options. Theories about the tradeoff between risk and return (CAPM) are extended to include multiple countries and currencies, and the predictions of the theory are compared to the empirical evidence from international developed and emerging equity markets. The last part of the course focuses on three aspects of corporate financial decision-making in an international context: how to measure and hedge corporate exposure to currency risk, the rationale for currency hedging, and capital budgeting in an international context. Throughout the course, students are required to prepare written solutions to case problems and make class presentations. Prerequisites: Data Analysis and Statistics, Valuation and Investment/Corporate Finance and Options or permission of instructor. (4 units)

☆MGT 543 Financial Instruments and Contracts
Jonathan Ingersoll, Jr.
This course is designed to provide an understanding of why various financial instruments and contracts are used and an introduction to their valuation. The first part of the course will develop the tools of contingent claims analysis. Contingent claims are assets or securities whose prices depend on the values of other assets or numerical indices. Obvious examples of contingent claims are: put and call options, warrants, futures contracts, and convertible bonds. In addition, virtually every financial asset or contract, traded or not, is a contingent claim as well. The value of a firm's debt and equity depends on the value of the firm's assets. A standard mutual fund management fee contract depends on the value of the managed assets. The marketing service of investment bankers depends on the value of the assets they are trying to sell. Even the taxes that the government collects from investors can be viewed as contingent claims. The second part of the course will use the developed tools and understanding to cover as wide a variety of contingent claims as possible. We will consider existing contracts and potential new contracts. In addition to learning how to value these instruments, we will discuss the use of and the design of contracts.
The first part of the course will be primarily lecture. The second part will be lecture, discussion, and mini-cases. The course requirements are a midterm and a final exam. This course uses some calculus. Prerequisites: Data Analysis and Statistics, Valuation and Investment/Corporate Finance and Options. (4 units)

☆ MGT 544 Investment Management
Zhiwu Chen
This course applies current theory and methods to the problem of investment and portfolio management. The course is 2/3 lectures and 1/3 cases, and is designed to develop a specific set of analytical tools that can be used in a broad range of settings, including the management of for-profit and nonprofit institutional portfolios. Among the topics and methods covered will be: portfolio optimization using mean-variance methods, long-term portfolio management using bootstrapping methods, equilibrium pricing relationships (Capital Asset Pricing Model and the Arbitrage Pricing Theory) using linear programming, investment performance evaluation using constrained regression, the efficient market theory and long-term stock market forecasting using OLS regression, bond portfolio management using simulation and the basics of pricing contingent claims contracts using the binomial model. Students will have the choice of a full case load and no final, or a light case load and a final exam. Prerequisites: Data Analysis and Statistics, Valuation and Investment/Corporate Finance and Options. (4 units)

☆ MGT 546 International Financial Markets
David DeRosa
This course is about world foreign exchange, interest rates, and stock markets. The course is a balance of theoretical financial economics and practical issues of market and trading mechanics. Topics cover both the G10 economies and the emerging market countries. Analysis of important policy decisions of central banks and ministries of finance is woven through the course. Prior course work in finance, especially in derivatives, and macroeconomics would be a great help to students. There will be a midterm and a final examination. (4 units)

☆ MGT 547 Fixed Income Security Analysis
Andrew Jeffrey
This course is designed to provide a comprehensive and rigorous analysis of fixed income securities. What distinguishes fixed income analysis from ordinary equity analysis is the focus on interest rates. In equity analysis the "risk-free interest rate" is often presumed to be given whereas in fixed income analysis it is important to acknowledge that it moves randomly over time. The purpose of the course is to give a thorough grounding in fixed income security analysis as a basis for analytical or applied work. This course is mathematical and uses some calculus. Prerequisite: Valuation and Investment/Corporate Finance and Options. (4 units)

☆MGT 551 Internet Strategy and Marketing
Bruce Buchanan
This course surveys major marketing issues pertaining to business on the internet. It explores the possibilities that the net creates for marketing new goods and services, or for augmenting and promoting existing goods and services. We examine a number of new technological capabilities brought about the net, and the relationship between these capabilities and perceived value on the part of potential customers. We consider the challenge of marketing within the "net culture," where users may be reluctant to pay for the information and services they receive and where so many offerings are free or effectively so. Also, we examine strategy on the net, which is influenced by such factors as barriers to entry and exit, competitive pressures, information availability, and globalization. The central question we address in all these investigations is how to create sustainable competitive advantage within this environment. Finally, we consider some aspects of the law that have direct impact on marketing strategy and the internet. These include issues of privacy as well as intellectual property.
The major conceptual tools just described are developed in the first part of the course. We assume here that the basic concepts of marketing still hold, but that their application to the net requires some consideration of context and technology. Later, we will examine a number of specific industries with respect to these ideas and the internet. I hope to bring several guests to class to help us better understand the application of these concepts to practice. Prerequisite: Marketing Management. (4 units)

☆ MGT 555 Pricing Strategy
Subrata Sen
The course examines the pricing strategies used by profit, nonprofit, and public organizations. Topics include: pricing as a means of market segmentation, quantity discounts, product line pricing, product bundling, pricing over the experience curve and the product life cycle, pricing of durables, pricing in an oligopoly, legal aspects of pricing, and pricing in the public sector. Teaching methods include cases, lectures, and guest speakers. Course requirements: Several cases drawn from a wide variety of products and services, and a group term project. Prerequisites: Economic Analysis or permission of instructor. (4 units)

☆ MGT 556b Designing and Implementing Global Marketing Strategies
This second year elective addresses anyone who plans to work for an organization which operates outside its domestic market. The emergence of new market economies, the increasing interdependence of nations, and the changing nature of the domestic marketing environment have created tremendous opportunities and challenges for such firms. The course addresses these by focusing on the strategic integration and implementation in the global marketplace of concepts learned in Marketing Management. We will concentrate on two key aspects, the development of international market entry strategies and strategic decisions pertaining to standardizing or customizing the firm’s marketing mix (product, price, distribution and advertising) across specific regions, nations and cultures. The course will have a seminar-based format that emphasizes class discussion and student research (applied group or individual projects). We will cover both U.S. and foreign companies doing business in countries around the world. Prerequisite: Marketing Management (or permission of the instructor). (4 units) Not offered in 1999-00.

☆ MGT 558 Consumer Behavior
Tina Kiesler
This course is about how to create value, in particular by developing and managing brands. In the first part of the course, we examine both well established and cutting-edge concepts from behavioral science that are key to understanding and predicting of customer behavior and demand. We emphasize applications of these concepts to the development of marketing policy planning and strategy, and to the various decision areas within marketing. Aided by two senior strategic marketing and branding executives, we then put these concepts to work on brand development and brand management in the second part of the course. These two executives will use their own extensive experience as a sounding board for the analysis of strategic branding problems. The teaching method will be a blend of cases, presentations by and discussions with the instructor and guest lecturers, and project work. By training your sense of what makes customers tick, the course aims to provide you with a competitive advantage: the ability to predict consumer response to marketing action, and hence to create value by making more insightful marketing decisions in many different industries. Prerequisite: Marketing Management (or permission of instructor). (4 units)

☆ MGT 559 Marketing Strategy
Ravi Dhar
This course offers students the opportunity to develop skills and acquire experience in dealing with strategic marketing problems. Topics include strategic marketing planning theory and methods, with emphasis on customer, competitor, industry and environmental analysis, and its application to marketing strategy development over the product life cycle. An integral part of the course is participation in a strategic marketing computer simulation game. Enrollment limited to 50 second year SOM students. Prerequisite: Marketing Management or permission of instructor. (4 units)

☆MGT 567 Entrepreneurship: Business Planning for New Cultural Institutions
Martin Shubik, David Cromwell
This is a working seminar dealing generally with the purpose, entrepreneurship and the economics of cultural institutions. It will be linked with MGT 618a Entrepreneurship: Business Planning for New Entrepreneurial Ventures. In this seminar we will deal with the contrast between for-profit and not-for-profit institutions, along with the possibility for an intermixture of both. The roles of P.T. Barnum and Disney will be considered -–and contrasted with major museums as purveyors of middle and high culture. A theme stressed is that the domain of cultural institutions requires both good management and entrepreneurship, plus 1) a substantive understanding of the societal support of the specific cultural institutions; 2) a basic understanding of how to construct a business plan for a cultural institution; 3) the economics of management for both new and existing institutions. The general theme will be illustrated in a "hands-on" design of a detailed business plan for one or two museums. The first museum project will be a feasibility study and business plan for a new intermixed science, history and art museum devoted to money and financial institutions. In spite of the proliferation of specialized museums in the past thirty years (e.g., barrio museums, museums devoted to architecture and design, space and aeronautics, and many others) there is no major science or history museum that is devoted to finance, accounting, economics and the central role of money and financial institutions in the development of society and the impact on everyday life. We will construct a business plan for an Exploratorium of Money and Financial Institutions, exploring the similarities and the differences between the construction of a purely private enterprise business plan and one for a cultural institution. Planning involves the specification of purpose, the economic aspects of cost of real estate and buildings, exhibition and running costs, and projects of potential revenues. There are the legal aspects of incorporating as a not-for-profit. The role of games and interactive exhibits in teaching and entertainment attraction must be considered. We will consider the educational and display potentials for departments in the new museum covering: (a) money and art, (b) public finance and war; (c) the history, purpose and development of financial instruments; (d) insurance and commerce; (e) stock markets and liquidity; (f) bubbles, panics and swindles; (g) the development of accounting and commercial law and the construction of economic indices such as GNP, or cost-of-living. Enrollment limited to 12 students from the Schools of Management, Art, Architecture, and Law and graduate students in the department of Economics. Students will work in teams of 5 or 6. Those interested in taking this class should reserve the 4:00-5:20 slot on Monday, Tuesday and Wednesday. Lectures and discussion will be mostly on Tuesday afternoons, with some Monday afternoons. Wednesday class meetings will be working sessions with the professors for the teams of both this course and MGT 618. Students who attend all lectures and participate in discussion for both this course and MGT 618 may elect to receive an additional 2 units of credit, with permission of the instructors. (4 units)

☆ MGT 578 China as an Emerging Market
Nicholas Lardy
This course is designed for students with an interest in managing enterprises, financial investments, and trade in a shifting international environment. This course will explore the economic paradoxes of contemporary China: an economy that has defied the orthodox policy mix recommended for successful transition—rapid privatization, price liberalization, and opening to the outside world—but which nonetheless has grown more rapidly than any other transition economy; an economy with a fragile banking and financial system that nonetheless generates one of the highest, if not the highest, rate of savings of any emerging market; an economy more open to foreign direct investment than any other in East Asia but one which maintains a substantial degree of protection for some of its most sensitive industrial sectors. In no particular order, the course will take up the following topics: China's political economy—the institutional framework; economic performance in the reform era; foreign direct investment/joint ventures and accessing foreign capital markets; foreign trade as an engine of growth; the domestic banking system as a constraint on future growth; state-owned enterprises and weak corporate governance as constraints; issues of technology transfer/intellectual property rights protection for foreign firms; China’s prospective WTO membership, issues for foreign firms; completing China’s transition to the market. Enrollment limited to 40. (4 units)

☆ MGT 580 Business, Government, and the International Economy
People, financial capital, goods, and services are crossing national borders at an increasing rate in search of customers, suppliers, and, especially, profits. This course will look at the interdependent, international environment in which business operates, focusing on issues of international trade and foreign investment. We will ask what strategies, if any, can be successfully pursued by governments on behalf of their constituents (both citizens and corporations) and by firms on behalf of their owners and employees. The focus will be primarily on economic and political factors, organized around the behavior of governments (countries), industries, and firms. The course will consist of four broad sections: interactions between businesses and governments, analyses of individual countries and industries, regional integration and its consequences, and corporate strategies and responses. The goal of the class is to develop the ability to perform analyses of both government and business responses to international opportunities and obstacles. This is primarily a case-based course with commensurate expectations about classroom participation. Prerequisite: 521 or permission of instructor. (4 units) Not offered in 1999-00.

☆ MGT 585 Operating Systems, The Internet and The Web: Where We Were, Where We Are and Where We're Going
David Gelernter
The course has four segments. (1) The technical facts of life: what do operating systems and computer networks do, and how do they do it? (2) The historical facts of life: How did today's dominant commercial operating systems develop (where do windows come from)?; how did the internet and the Web develop? (3) What happens now? New technologies (program-building models such as Sun Microsystems' Java and Jini; information-management models such as lifestreams and mirror worlds).(4) What does it all mean? (If anything.) Cultural, educational and organizational implications (good and bad) of the cybersphere and the increasingly net-centered universe. The course is intended to introduce students to technical (and historical) material without relying on mathematics, science or engineering -- but in an intellectually rigorous way. Readings to be distributed as we go along. Enrollment limited to 30. (4 units)

☆ MGT 586/PLSC 662 Strategy, Technology and War
Paul Bracken
This course covers the interrelationship among military strategy, foreign policy, and technology since 1900. Classic and modern formulations of these relationships (Clausewitz, Sun Tzu, and modern counterparts) and their application to international and sub-national competition are examined. The course focuses on these perspectives on topics such as nuclear proliferation, intelligence bureaucracies, and coordination of complex organizations involved in defense. Both intended and unintended effects on global politics, civil-military relations, and the scale of violence in the international system are the main themes. (4 units)

☆ MGT 589 Information Technology for Management
Daniel Prober
Information technology has transformed the modern organization. Managers must not only master end-user applications, but must also understand how Information Technology can organize the complexity of the enterprise, alter relationships with customers, suppliers, and employees, and fundamentally change the structure of the firm. In this course we examine a spectrum of issues in both theory and practice including technology fundamentals (hardware and software), economic issues (such as pricing and capital budgeting), organizational issues (such as outsourcing and re-engineering), and legal and regulatory issues (such as privacy and copyright). The course will combine case study and hands-on use of end-user applications with lectures presented by both faculty and practitioners. Preference given to second year SOM students. Enrollment limited to 30. (4 units)

☆ MGT 593 Global Financial Reform
Albert Fishlow
This seminar will examine come of the many proposals for change in the international financial system that have come forward in the last few years. As a background for that discussion, there will be a number of personal appearances of key officials - from the US government, from other governments, and from a variety of international institutions, World Bank, IMF, IDB, etc., as well as from the private sector. A paper will be required of all participants. (4 units)

☆MGT 596 The Post-Communist Transition in Eastern Europe and the Former Soviet Union
Challenges for Business Strategies
This course will focus on structural adjustment policies, stabilization, privatization, liberalization and the political economy of transition to a market, with special attention given to the viewpoint of investors, financiers, managers or executives. Particular topics to be considered include the legacy from the past and inherited structural rigidities, corporate governance, development of financial markets, means of privatization, trade liberalization and strategies, implications of European integration and the EMU introduction, the EU eastbound enlargement, and foreign direct investment. (4 units) Not offered in 1999-00.

☆ MGT 611 Policy Modeling
Edward Kaplan
How can one evaluate the effectiveness of HIV prevention programs? How many drug treatment slots are required to provide treatment on demand? Does capital punishment deter homicide? And what do the above questions have in common? The answer to the last query is simple: these problems and more are considered in Policy Modeling. Building on earlier coursework in quantitative analysis and statistics, Policy Modeling provides an operational framework for exploring the costs and benefits of public policy decisions. The techniques employed include "back of the envelope" probabilistic models, Markov processes, queuing theory, and linear/integer programming. With an eye towards making better decisions, these techniques are applied to a number of important policy problems. In addition to lectures, assigned articles and text readings, and short problem sets, students will be responsible for completing a take-home midterm exam and a number of cases. In some instances, it will be possible to take a real problem from formulation to solution, and compare your own analysis to what actually happened. Prerequisites: Decision Analysis and Game Theory, Data Analysis and Statistics, or a demonstrated proficiency in quantitative methods. (4 units)

☆ MGT 618 Entrepreneurship: Business Planning for New Entrepreneurial Ventures
David Cromwell
Entrepreneurs must: (1) research and evaluate the merits of a proposed new venture; (2) conceive and write a good business plan; and (3) organize the human, financial and other needed resources. One way to acquire entrepreneurial skills is to "learn by doing." In this course students will work in teams of five or six people each; each team will do research, devise strategy and write a professional-quality business plan for an actual new venture. This course will be linked with MGT 567a Business Planning for New Cultural Institutions. The proposed new ventures will include one public interest project and two private interest ventures, all in New Haven. The professor will post a list of possible choices in mid-August. Scientists at Yale may sponsor one or more of these private ventures – in life sciences or information technology. Or the Enterprise Center of greater New Haven may sponsor projects on behalf of business people who wish to launch or expand a local private company. Students may also propose their own ventures as one of the projects (subject to the approval of the instructor during the first week of class). Each team will research market fundamentals and the competition, and devise a comprehensive business strategy. Students will write and present a professional-quality business plan, which will include financial projections, equity valuation, and the terms and conditions for any financing. In most cases, delivery and presentation of a final Plan will mark the formal end of the class. Enrollment limited to 15 second-year SOM students. Students who attend all lectures and participate in discussion for both this course and MGT 567a may elect to receive an additional 2 units of credit, with permission of the instructors. Students interested in this course should review the proposed projects before bidding. Workload will be heavy at times. (4 units)

☆ MGT 621/ECON 451 The Theory and History of Money and Financial Institutions
Martin Shubik
An approach to the theory of money and financial institutions is adopted which lays stress upon the way in which money, financial instruments, and institutions emerge naturally from the trading and production technology. The way in which the price system meshes with the financial system to provide a control system for a political economy is considered. The approach emphasizes both institutions and the underlying mathematical models (but although stress is laid upon modeling, the seminar is not heavily mathematical). A few basic concepts of game theory and the techniques for the building of process models are required and they are covered in the seminar. Both theory and implications for practice are considered. Thus, the ability to read the Wall Street Journal and Forbes as well as the Journal of Economic Theory or the Journal of Political Economy, the Federal Reserve Bulletin, and generally accepted accounting principles is regarded as desirable. (4 units)

☆ MGT 635 Venture Capital and Private Equity Investments
David Cromwell
Investing in venture capital and in the equity of private companies is an apprenticeship business. Venture investors need analytic and quantitative skills, as well as broad knowledge of a range of business and financial disciplines. Successful investors need practice and a variety of experience, as well as good judgment and people skills. Course topics include start-ups and expansion stage venture capital, leveraged buyouts, and turnaround situations. Disciplines include business research (library skills), business and financial analysis, financial projections and equity valuation, verbal and written presentations, teamwork, and negotiating techniques. The course includes both lectures and in-depth case studies, with a strong emphasis on "learning by doing." Teamwork is actively encouraged to frame and solve problems, and to handle heavy workloads. Execution of case studies requires teams of students to do research on industries, segments and niches, to evaluate business plans, and to make financial projections and value equity instruments. Teams will make written and oral presentations. Entrepreneur and investor teams negotiate and structure "deals" in a role-playing mode. Enrollment limited to 36 second-year SOM students. Heavy workload. Prerequisite: Valuation and Investment/Corporate Finance and Options. (4 units)

☆MGT 692 Business Ethics
Stephen Latham
This course explores the ethical responsibilities of managers to their firms, to their customers, to their employees and to their communities. We will begin by looking at some of the theory of markets: the rules which must be in place in order for them to function, their limits, and the conditions under which they break down. From this base, we will develop a picture of the ethical responsibilities of business managers which is tied to the proper functioning of markets. Along the way, we will review a number of famous ethical theories and consider their applicability to business-ethics problems. Because ethical responsibilities are frequently embodied in law, this course will include consideration of many of the most important basic legal constraints on managerial behavior. Readings will be a mix of ethical and economic theory, ethics cases and legal material; all readings will be accessible to students with no special background in philosophy, economics or law. (4 units)
LAW/MGT 694 Housing and Community Development
J. Pottenger, Robert Solomon
The Housing and Community Development Clinic is a two semester, multi-disciplinary workshop involving students from the Schools of Law, Management, and Architecture. Under the supervision of university faculty and members of the local bar, participants work on behalf of non-profit organizations, small businesses, and government agencies to promote job creation, neighborhood revitalization, low-income housing, and social service delivery in the New Haven Area. The Clinic emphasizes a non-adversarial, transactional approach to problem-solving. As legal, financial, and architectural advisors, participants research legal issues, facilitate negotiations, incorporate organizations, complete loan and grant applications, develop financial analyses, and draft architectural plans, among other tasks. Class topics include professional responsibility, real estate finance, low-income housing policy, comparative advantages of nonprofit and for-profit organizations, and urban economic development. (4 units)
LAW/MGT 695 Nonprofit Organizations Clinic
John Simon
This clinical workshop will serve the needs of nonprofit organizations, nascent and established, that require help in the process of organization and incorporation, in obtaining tax exemption, and in solving ongoing legal problems—organizations that cannot afford to retain private counsel. The class will meet as a group six or seven times during the term. Students will meet with clients throughout the term. (2 units)
ARCH 903/MGT 696 Introduction to Planning and Development
Alexander Garvin
This course demonstrates the ways in which financial and political feasibility determine the design of buildings and the character of the built environment. Students propose projects and then adjust them to the conflicting interests of financial institutions, real estate developers, civic organizations, community groups, public officials, and the widest variety of participants in the planning process. Subjects covered include: housing, commercial development, zoning, historic preservation, parks and public open space, suburban subdivisions, planned communities, and comprehensive plans. (4 units)

☆ MGT 985/LAW Professionalism under Pressure in Law and Medicine
Theodore Marmor, Robert Solomon
Law and medicine are among the oldest professions, traditionally defined as occupations that collectively set and enforce standards of education, apprenticeship, and the quality of ethics and practice; that grant individual members a large autonomous discretion to determine how to apply those standards in practice in caring for the interests of clients, patients, and the public interest in justice and health; and that in return for adherence to such professional standards are protected from the competition of nonprofessionals and accorded high social status and the chance to earn a comfortable living. In the last twenty years both law and medicine have been undergoing massive structural changes in the organization and financing of their services, in large part driven by intense pressures (in law, chiefly from corporate clients; in medicine, from insurers and the federal government) to cut escalating costs. In both the result of changes has been significantly to erode the authority and autonomy of professionals to control their markets and the terms on which their services will be rendered; both lawyers and doctors increasingly find that their decisions regarding service and treatment are subject to the direction, supervision and second-guessing of outside monitors, bureaucratic hierarchies and regulators. These developments (often coupled with new forms of competition from inside and outside the professions) have given rise to much protest and debate--with traditional lawyers and physicians claiming that new pressures towards standardization and regulation and increased competition are seriously compromising professional values of quality and care for clients/patients; and proponents countering that the new structures promote superior as well as more cost-effective service. This seminar aims to examine and compare the structural changes occurring in law and medicine and to assess their effects on professional values. A limited number of students who take this course in the Fall semester may elect in the Spring semester to undertake, for additional credit, individual research on a related topic under the supervision of one of the instructors. (4 units)

☆ MGT 992 Strategy and Policy in the Health Care Sector
This course examines how health care is organized, delivered, and financed. We will consider how recent and prospective changes along each of these dimensions may affect the circumstances and strategies of insurers and health plans, hospitals and physicians, purchasers, patients, and citizens. We will pay special attention to cross-national learning, horizontal and vertical integration, the forms and implications of managed care, and current policy issues. (4 units) Not offered in 1999-00.

☆ MGT 993/LAW National Innovation Systems Business Government and Technology
This course will examine international efforts by governments and other institutions to stimulate technological change and innovation in order to promote economic growth, employment, and competitiveness. The role and strategy of the private sector in this process is clearly critical. By analyzing different comparative national models, the structure and policies of U.S. public sector institutions and private firms will become more clear. Topics covered will include the global competition for capital, technology, and markets; specific industry case studies; the role of multinational corporations; the impact of the end of the cold war; and new paradigms for technology innovation. (4 units) Not offered in 1999-00.

☆ MGT 994 Strategy, Governance and Management of the Large Public Corporation
Paul MacAvoy, Ira Millstein
Strategy, governance and management are critical activities of the large corporation. This course considers the interrelationships among them that lead to success. It begins by defining measures by which a corporation ranks alternatives in the necessary course of articulating vision, mission and objectives. Strategy is the process by which a corporation may differentiate its products or services so as to obtain a competitive advantage to achieve its objectives; it is a dynamic feedback process in which methods of differentiation and objectives themselves change over time. The governance system is the method by which the board of directors, as agents for investors, incentivize and monitor management. Management must structure and organize the corporation's resources so as to implement the strategy and in the long run achieve its objectives; management also provides leadership that aligns new strategies with the corporation's opportunity set to promote the corporation’s vision and to achieve the corporation's objectives. We demonstrate these interrelationships through textual analytical studies and case studies first of one aspect and, finally, of the interactions of strategy, governance and management. Enrollment limited to 36. (4 units)

☆ MGT 996/EAS 996 SynThesis: Product Design for Entrepreneurial Teams
Robert Apfel
This is a year-long team-based product design and development course for second-year SOM students and graduate students in Engineering. Students work in interdisciplinary teams to develop a product from inception to market. Each team manages a budget, the production of prototypes, and the entire process of technological innovation. During the spring term, each team develops a business plan. A total of eight units of credit will be awarded at the end of the year; no credit given until the entire course has been completed. Limited enrollment; permission of instructor required. (4 units)
Half-Semester Courses (2 units each)

☆ MGT 805 Service Management
The course examines problems and decisions related to the design, planning, control, and improvement of service systems. Some of the topics to be discussed are market environment for service operations, design of service systems, performance measures, planning and control, quality management, capacity and technology choice, information systems, location, and distribution management. (2 units) Not offered in 1999-00.

☆ MGT 806 Supply Chain Management
Lode Li
The course focuses on improving the performance of the firm and its supply chain through coordination among multiple sites, functions and economic actors (customers and suppliers). The course is concerned with designing and implementing strategies for structure and coordination, both cross-functionally and across a value chain. These include process design, logistics, information and coordination in supply chains, and design of supply chain architecture. The theme of the course is integration, especially how managers can lead in achieving the cross-functional and cross-business integration increasingly important for business success. (2 units)

☆ MGT 808 Making Decisions with Spreadsheets: An Introduction to Operations Research
Lode Li
Operations research, also known as management science, is a discipline devoted to applying scientific methods to decision making. Operations researchers utilize statistical and mathematical modeling techniques in concert with empirical observation and occasionally experimentation to arrive at solutions to management problems in government and industry. This course introduces students to operations research through a combination of lectures and computer models using EXCEL. Model formulation and use of the computer will be emphasized in applications to a broad spectrum of management problems. Mathematical details will be kept to a minimum. Prerequisites: Data Analysis and Statistics, Decision Analysis and Game Theory. (2 units)

☆ MGT 809 Leading Strategic Change
Jeffrey Sonnenfeld
This course takes a comprehensive view of the value-adding impact of top corporate leaders and how they revolutionize their enterprises, their industries, and the world economy. The subject matter will embrace and integrate such broad key dimensions of strategic change as economic context, shifting markets, emerging technologies, corporate life stage, company culture, and corporate governance together with the character, skill-set, and life stages of individual leaders. The course mission involves three equally important goals. The first is to help students anticipate the multi-dimensional, cross-disciplinary aspects of successful planned change from strategic systems to group dynamics and individual psychology. A second is to appreciate the consequences of the unintended effects of strategic change initiatives on work communities and societies at-large. The last is to provide students with an overview of the contemporary industry-specific challenges in an effort to highlight the varied leadership values and skills that are not always apparent as corporations make acquisitions or managers select careers. The course materials used to fulfill this mission require students to be comfortable with a wide variety of learning tools including: research articles; case studies; current industry periodicals; spirited class discussion; role playing; video; and frequent prominent industry leaders as class visitors. Following an overview that builds an analytic framework for the course, the key dimensions of strategic change will be examined through a sequence of industry-by-industry settings including: professional services; financial services; retail; e-commerce; communications and media; recreation and travel; government and non-profit; industrial and consumer products. Toward the close, the course will return to cross-industry change leadership and challenges such as executive succession, life stage imperatives, and ethical dilemmas. (2 units)
MGT 810 The Global Business Environment and the Multinational Corporation
The course analyzes the types of strategic choices and organizational capacities that underlay the success (or explain the failure) of multinational firms in the global business economy. The multinational firm intrinsically has a dual anchorage in competitive structures with other firms, and with the public and governments that shape this competitive environment. The course focuses on recognizing and managing the opportunities and problems from these two sets of forces. (2 units) Not offered in 1999-00.

☆ MGT 812 Financial Statement Analysis
Sok-Hyon Kang
This course helps students learn basic tools in analyzing financial statements. We cover the following four topics: (1) financial analysis using ratios; (2) equity valuation; (3) assessment of the impact of using alternative accounting methods and how to "disentangle" it, if possible; (4) credit analysis. We proceed under the framework of a four-step process: business strategy analysis, accounting analysis, forecasting, and valuation. Business strategy analysis establishes the context of the financial reports and suggests important areas for our attention. Accounting analysis describes the extent to which the use of different accounting methods affects reported results. Forecasting combines the results of the business strategy analysis and the accounting analysis to generate predictions, usually of future earnings and cashflows. Valuation converts the forecasts into estimates of variables of interest, such as stock prices or debt ratings. While no accounting methods beyond those contained in MGT 870 and 871 are presented, we will make extensive use of the material from that course. Class time will be spent in a combination of lectures and case discussions. Prerequisite: Financial Reporting. (2 units)

☆ MGT 813 Advanced Financial Statement Analysis
Sok-Hyon Kang
This course builds on the material of MGT 812, Financial Statement Analysis. It takes the basic four step process and applies it to more complex financial aid and accounting situations. Class time will be spent in a combination of lectures, case discussions and student presentations. Students will form groups, select a company and prepare a detailed analysis--either a business valuation or an assessment of a merger or acquisition. Excellent spread-sheet skills are assumed. Prerequisite: Financial Statement Analysis. (2 units)

☆ MGT 814 Understanding and Evaluating the Financial Statements of Not-for-Profit Organizations
Herbert Folpe
The course is designed to provide the basic knowledge needed to understand and analyze the general purpose financial statements of private not-for-profit organizations (NFPs) and will cover the following topics: the historical development of accounting standards for NFPs and the current institutional framework for standard-setting for those organizations, namely the respective jurisdictions of the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB); consideration of how, if at all, the general purpose financial statements of NFPs should differ from those of for-profit entities; distinctive accounting standards applicable to private not-for-profit organizations in the areas of required financial statements, contributions, and investments as promulgated by FASB; ratios and other summary indicators used to evaluate the financial condition and performance of NFPs. To illustrate the application of the standards and ratios, the course will focus on those major groups within the not-for-profit sector—higher education, voluntary health and welfare organizations, and cultural institutions. Students will be required to review and analyze financial statements of selected NFPs. (2 units)

☆ MGT 816 Advanced Managerial Accounting
Oren Fürst
We use a combination of lectures, cases and simulations to illustrate some of the main issues confronted by managers of Multinational Corporations (MNCs) and international firms. In particular, we deal with: implementations of performance strategies in the global context; the complexities of performance measurement and evaluation of divisions of MNCs and firms going through M&As; strategic product costing and transfer pricing in the international context; corporate governance and its relation to operating performance around the world; and implementing control and performance measurement systems in former non free-market environments (Privatized companies and firms in non-capitalist countries). Prerequisite: Managerial Accounting. (2 units)

☆ MGT 831 Valuation of Technology
Peter Boer
Technology drives about 50% of the growth in the economies of developed nations, but there are important differences in how it is valued, and how transactions are structured, from other physical and financial assets. In particular, risk levels can be both exceptionally high and time-dependent, and the interdependence of technologies demands tools that go beyond conventional enterprise models. The course will begin with a review of financial statements and discounted cash flow methods as they pertain to intellectual property and technology and proceed to an in-depth pro forma analysis of a model R&D project. The course will then build on this information to value an R&D portfolio. Finally, we will explore the role of non-linear methods, including decision tree and options theory, and Monte Carlo calculations, in explaining wealth creation via technology. Enrollment limited to 30 (15 SOM and 15 Engineering). (2 units)

☆ MGT 835 Transportation Strategy and Management
This course will survey the regulatory and managerial environments facing public and private transportation decision-makers, provide an overview of the transportation industries, develop an understanding of concepts of intermodalism, and examine how both economic and noneconomic regulatory factors have affected strategic development in each of the transportation modes. Students will be expected to consider issues of public policy, regulatory theory and practice, the role of the private transportation manager, and issues of equity among transportation providers and users. Given the centrality of transportation to all other economic activity, transportation will be considered as a component in delivered cost, competitiveness, and basic production management. We will examine how the specific characteristics of the technology and regulation of transportation services create a framework within which a shipper, or a carrier, or a broker-dealer’s strategy is differentiated from the strategy of companies in energy, telecommunications, or retail and goods distribution. The class will look at the impact of public policy on representative organizations -- users, providers, and broker-dealers -- and will examine the strategic choices managers in each face in making transportation decisions that are best for their organization. We will also consider how the extensive globalization of production and related transportation options and constraints has had a significant impact on competition decisions. (2 units) Not offered in 1999-00.

☆ MGT 840 International Financial Analysis and Equity Valuation
Oren Fürst
We use a combination of lectures, real-life cases and current events to provide you with essential tools for the financial analysis and equity valuation of international firms, and of firms with multinational operations, regardless of their nationality. For example, we analyze: the impact of inflation and foreign currency exposure and transactions on firm's value; relative valuation of firms in international M&As; the impact of differences in rules and regulations on cross-country comparisons of firms' values. (2 units)

☆ MGT 841 Private Equity Investing
Michael Schmertzler
Private equity involves the investment of capital in illiquid, privately negotiated equity and equity linked securities representing majority as well as minority interests in private and public companies. This is a very broad topic but a very short seminar. The seminar should, however, offer active participants an opportunity to gauge their affinity for the business and to develop an awareness of the primary issues pertinent to generating returns on private capital. The seminar’s objective will be to familiarize students with: analytical methods relevant to evaluating and structuring private equity investments; forms of documents typically encountered in private equity; the priorities of the primary participants in the private equity business and the resulting dynamics typical of private equity transactions; several types of private equity investments. The cases will cover the following topics: sources of private equity; a leveraged buy-out; a build-up; a corporate partnership; debt; a growth capital investment. In the course of discussing these cases we should also touch on several relevant issues: the legal structure of private equity partnerships, the duties and standards of performance of directors in a corporate change of control, terms and conditions of loan agreements, terms and conditions of equity investments, and basic principles of bankruptcy. Classes will focus on the discussion of background material and cases. The background materials generally focus on legal and accounting issues relevant to the cases. They are often substantial source documents. Two cases are often assigned. One is for discussion in class and the other primarily for background. This seminar is taught in a highly interactive manner. Thus, students will need to be committed to the preparation of material prior to class and consistent attendance. Cases will often require students to submit negotiating objectives by e-mail several days before class and to negotiate among themselves prior to and during class. Grades will be determined based on class participation, two memoranda summarizing views on a case, and a final examination. Students will be expected to arrive with several fundamental tools: the ability to read and project financial statements; basic corporate finance; a framework for the strategic analysis of a business. (2 units)

☆ MGT 861 Management of Computational Assets: Intellectual Property Law, Policy and Strategy
R. Bhaskar
Computational assets (such as the electronic factory or an electronic department store), that is, property in the form of computational objects, may become the dominant species of human property in the coming century. Conventional decision techniques do not always address the problems of managing firms with such assets. This course examines how familiar managerial decision problems take on new complexities in the context of computational assets. How should a large firm value a small firm whose only asset is an innovative form of electronic property? Analogously, how should a small firm whose portfolio consists mainly of a very few electronic assets evaluate a merger offer? How should cross-licensing proposals be evaluated? Is the current public policy posture of accounting standards and legal regimes with respect to such assets adequate? Answers to these questions depend in an important way on understanding the information technology that underlies such assets. Although the course begins by covering the fundamentals of intellectual property law, the focus of the course will be on managerial decision problems. Topics include accounting, financial, strategic and legal approaches to the valuation of intellectual property; methods for deciding whether to acquire a computational asset or develop it in-house; the organization of the computational asset-based firm, and the international aspects of computational asset management. Neither computer literacy nor even computer comfort is a prerequisite, but an open-minded curiosity about the new world of virtual estate is. The course will require timely completion of homework, participation in ongoing discussions inside and outside the classroom, and a final examination. (2 units)

☆ MGT 868 Extreme Variability in Financial Prices: Multifractals' Theory and Implications
Benoit Mandelbrot
The variation of financial prices is characterized by a) the presence of frequent periods of extremely fast (often, discontinuous) change, and b) constant variability of the volatility. Modern portfolio theory is based on the coin-tossing model of price variation (also called "random walk on the street," Gaussian linear model, Brownian motion). Discontinuities and variable volatility are excluded by the coin tossing model. To the contrary, they are simply, clearly and effectively accounted for by the new multifractal model. This model will be described in successive increasingly technical stages. It will be compared to other candidates like GARCH. Its possible implications concerning policy will be discussed. (2 units)