BUSINESS ECONOMICS FOR CULTURAL ORGANIZATION

The course [FT0505] is part of the Department of Philosophy and Cultural Heritage (DFCB) within the Bachelor's Degree in Conservation and Management of Cultural Heritage and Activities.

Given that the objective of the degree program is:

to train professionals in the fields of: a) protection, valorization, and management of historical-artistic, archaeological, and archival heritage; b) operational and organizational management of museums, foundations, archaeological parks, public bodies, and Third Sector entities; c) organization and promotion of cultural and artistic events (exhibitions, festivals, etc.) and management of valorization services across cultural enterprises.

The course provides students with the analytical tools to understand:

The principles of economics and the specific nature of merit goods and public goods;
What an enterprise is, conceived as an open socio-technical system;
The managerial modes and forms of business enterprises and cultural institutions;
How an organization is structured and interacts with the market and the public;
How business administration concepts are applied to the cultural heritage market and to protection/valorization activities.

The learning objectives of the course are:

Provide the foundational concepts of general economics and cultural demand analysis;
Illustrate business management forms, governance, and organizational structures;
Identify the distinctive operational characteristics and economic-financial equilibria of organizations operating in the cultural heritage sector.
Specifically, the study of managerial aspects will be introduced and supported by the foundational principles of business administration.

Through active attendance of lectures and individual study, students will achieve:

Knowledge and understanding:

1.1. Fundamental concepts and principles of economics and business administration to understand firm dynamics in delivering cultural services and experience goods;
1.2. Corporate reporting (analytical, environmental, social, and mission-based reporting) to assess cultural operations across this fourfold perspective;
1.3. Identify determinants of organizational design (from elementary setups to project-based and matrix structures);
1.4. Understand organizational and managerial strategies framed by heritage protection laws (Leg. Decree 42/2004);
1.5. Understand models adopted by enterprises and organizational typologies in culture (public institutions, participation foundations, Third Sector entities, private concessionaires).

2. Applying knowledge and understanding:

2.1 Apply core economic and managerial disciplines (economics, environmental economics, management, organizational design, marketing) to cultural venues and heritage institutions;
2.2. Identify key features making an organization sustainable through the principle of economic viability (economicità) and the Triple Bottom Line (TBL) framework.

3. Making judgements:

3.1. Understand economic systems and organizational roles, analyzing the "cost disease" and hybrid financing needs;
3.2. Identify governance models in cultural organizations, reconciling scientific-curatorial requirements with managerial efficiency;
3.3. Structure business units effectively, evaluating allocative/productive efficiency and social impact;
3.4. Analyze market integration and design marketing mix strategies aimed at audience development.

There are no prerequisites required for this course.

Note: the syllabus outlined below may undergo minor modifications during the academic term.

Economics:

The economic system and the allocation problem (scarcity and Maslow's hierarchy of needs);
Market structures and economic models;
Microeconomics vs Macroeconomics;
Resource allocation;
Cultural heritage as merit goods, positive externalities, and cultivated taste (learning-by-consuming);
Demand, supply, and price elasticity (εp): microeconomic rationale for price discrimination.

Environmental Economics:

Traditional vs circular economy;
Characteristics of circular economic systems;
Environmental functions and ethics;
Sustainable development and indicators: the Triple Bottom Line (TBL) framework;
Contextual preservation and carrying capacity against overtourism.

Business Administration:

Core definitions (the firm as an open socio-technical system, entrepreneurship, economic activity);
Production, consumption, outputs, and economic sectors;
Classification criteria; economic vs legal subject; legal forms;
Corporate functions and market structures;
The principle of economic viability (economicità): economic balance (three-tier revenue model) and financial liquidity;
Performance measurement: allocative and productive efficiency vs internal and social/external effectiveness;
Taxonomy and governance in cultural heritage: Public institutions, Participation Foundations, Third Sector Entities (ETS), and Private Concessionaires (Art. 117 Leg. Decree 42/2004).

Law and Institutional Framework:

Hierarchy of legal sources;
National legal instruments (Acts, Legislative Decrees) and EU law (Directives, Regulations, Decisions);
Legal provisions of the Cultural Heritage and Landscape Code (Leg. Decree 42/2004: Art. 9 Const., protection vs valorization, public domain status of collections).

Corporate Reporting:

Financial accounting: Balance Sheet, Multi-step Income Statement, Cash Flow Statement;
Social reporting and Mission Report for stakeholders;
Environmental reporting.
Business Management Functions:
Strategic: capital investments and inalienability of public collections (prohibition of deaccessioning);
Operational: preventive conservation standards, microclimate monitoring, and security;
Human Resources: integrating curatorial profiles with managerial skills;
Financial: cash flow planning and managing disbursement delays in public subsidies;
Asset management;
Commercial: ancillary services, concessions, licensing, and Art Bonus tax credits;
Extraordinary: emergency management and disaster response (Art. 27 Leg. Decree 42/2004).

Organizational Design:

Organizational variables: contingency and structural factors;
Information and coordination mechanisms;
Applied models: Elementary model (local civic museums), Functional model, Network model (territorial museum systems), and Matrix/Project-based model.

Cultural Marketing:

Strategic: PEST diagnosis, segmentation, targeting, positioning, and Ansoff Matrix applied to heritage;
Operational: the 4Ps in culture (experiential Product, social Price, physical/digital Place, relational Promotion and storytelling);
Audience development and reducing access barriers for non-audiences.

Principi di economia e gestione delle imprese - circolare e sostenibile - S. Sassone - Amazon Kindle Publishing, 4th Edition – October 2026 (integrated with lecture notes, case studies, and reading materials on business administration applied to cultural institutions provided by the instructor).

The final exam is in written form, with an optional written mid-term test.
Mid-term Test:
Date: announced in class and published on Moodle;
Format: 2 open questions and 5 multiple-choice questions (three options, only 1 correct);
Duration: 1 hour;
Format: written;
Syllabus: topics covered up to the mid-term test.
Final exam (for students who passed the mid-term with grade >= 18/30):
Date: scheduled exam sessions published on Moodle;
Format: 1 open question and 2 multiple-choice questions (three options, only 1 correct);
Duration: 1 hour;
Format: written;
Syllabus: topics covered after the mid-term test;
Final grade: arithmetic average of the mid-term grade and the final test grade.
Final exam (for students who did not take or did not pass the mid-term test, grade < 18/30):
Date: scheduled exam sessions published on Moodle;
Format: 3 open questions and 7 multiple-choice questions (three options, only 1 correct);
Duration: 1 hour;
Format: written;
Syllabus: comprehensive examination covering the entire course syllabus;
Final grade: based exclusively on the result of this full written examination.
The instructor monitors exam authenticity: in case of irregularities, an oral assessment may be required during the examination session.

written

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

Assessment is graded on a scale of 30:
Passing grade is 18/30;
Maximum grade is 30/30, with honors (lode) awarded for outstanding performance;
The evaluation will assess conceptual understanding, ability to apply economic models to cultural organizations, precision of specialized vocabulary, and analytical clarity.

The course consists of in-person classroom lectures complemented by case study discussions, professional insights, and quantitative analyses of the cultural sector. Supplementary materials will be provided via the Moodle platform.

For any further inquiries:
info@stefanosassone.it (note: for technical reasons, students are requested to write to this email address and cc the institutional address below)
stefano.sassone@unive.it

This subject deals with topics related to the macro-area "Circular economy, innovation, work" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development