This course provides students with knowledge and tools to understand the relationships between production cost, market demand and revenue management. These are the key determinants to business profit and thus the sustainable development of any business. Modern leaders are expected to understand a business process designed to optimize the financial performance of the operation through all market conditions. They are expected to anticipate and react to market demand to maximise the businesses’ revenues while controlling costs.
The course has the following primary learning objectives:
To understand the key cost elements in a standard financial statement of any business.
To stimulate demand from different customers and thus to gain the maximum revenue in the service sector where supply capacity is often fixed and perishable. The essence of this discipline is to understand the customers’ value perceptions and to align the right products to each customer segment accurately.
To review the economic principles of pricing and understand the importance of price differentiation for different market segments and dynamic pricing following time-varying demand in the service sector.
To understand how different pricing and revenue strategies may affect revenue and cost simultaneously and thus how to balance revenue and cost to optimize profit.
After completing the course, the students should have the following complete learningsoutcome defined in knowledge, skills, and general competence:
Understand the key indicators to measure the economic performance of a business
Understand the key cost elements in a business
Understand the market complexity and perishable and constrained inventory in the service sector.
Understand the various customer needs and willingness to pay in different market segments.
Understand the main pricing theories and strategies including price discrimination, dynamic pricing, and package price.
Understand how different product development and price strategies may affect total revenue.
Understand how different market and revenue strategies may affect costs and how to balance revenue and cost.
Can read and understand a standard financial statement
Can have basic business analytical skills
Can exchange views and experiences with others in the field of revenue management and cost control.
Can contribute to the development of good practices in revenue management.
Are capable to present their findings and business insights to diverse audience.
Can write a business analysis report in the field of cost and revenue management.
Required prerequisite knowledge
Some previous background in economics, markting and analytical skills are recommended.
Master students in Service leadership in International Business program. Master students on incoming exchange, and other master students from UiS when vacant places.
There must be an early dialogue between the course coordinator, the student representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital course evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.