How Managerial Economics prepares MBA students for global leadership.
Álvaro Almeida, Professor of Economics at Porto Business School, combines his expertise in macroeconomics with management experience. With a PhD from the London School of Economics and roles at the IMF and the Healthcare Regulatory Authority, he discusses how the Managerial Economics course prepares future leaders to navigate a rapidly changing world.
Can you tell us a bit about your background and how you became involved in teaching Managerial Economics in Porto Business School’s MBA programs?
I have been teaching economics since I graduated at FEP, many, many, years ago. After I got my PhD in Economics from the London School of Economics, I worked for the International Monetary Fund for three years, where I developed my expertise in macroeconomics. A few years after returning to Portugal to be a professor of economics at FEP, I was appointed President of the Authority of Healthcare Regulation, where I had some management experience. I guess that it was this combination of management experience, teaching experience and macroeconomics expertise that led to the invitation to teach Introductory Economics in the PBS MBA program in 2009.
What do you find most rewarding about teaching Managerial Economics to MBA students?
Teaching economics to MBA students is challenging but very rewarding. The background of the students is very diverse, with some students with a degree in economics and other students that never had an economics course before. This diversity challenges me to teach classes that are interesting and new for the former, yet simple enough for the latter to follow, which usually involves using many recent examples of business applications. It is very rewarding when I realize that the Managerial Economics course is able to bring a new way of analyzing problems for the latter and also brings something new for the former.
What are the key economic challenges that MBA students and business leaders face today, and how can they address them?
MBA students and business leaders today are facing significant changes to the old world order. The international economic relations are changing, and so are the economic policies, at a pace that we have not witnessed in many decades. In this fast changing world, economic “truths” are being overthrown every day. The only way to address these changes is going back to the basics, to the fundamental economic principles that are unchangeable, and that will persist under whatever institutional arrangements will emerge after this turbulence is over.
In your opinion, how does a solid understanding of Managerial Economics contribute to leadership effectiveness and business growth?
This is the main contribution of Managerial Economics to the future leaders that are PBS MBA students. Knowing the foundations of the business environment, the key points that will endure whatever the world order that emerges from this chaos is, allows leaders to better carve a strategy that best fits the path to business growth. Managerial Economics is essential for managers that wish to develop a business strategy that is consistent with the new business environment that will emerge after this turbulent period.