...Assignment no: 509 Answer Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organization can achieve it aims or objectives most efficiently. Importance of managerial economics Managerial Decision Problems Economic theory Microeconomics Macroeconomics Decision Sciences Mathematical Economics Econometrics MANAGERIAL ECONOMICS Application of economic theory and decision science tools to solve managerial decision problems OPTIMAL SOLUTIONS TO MANAGERIAL DECISION PROBLEMS Managerial Decision Problems Economic theory Microeconomics Macroeconomics Decision Sciences Mathematical Economics Econometrics MANAGERIAL ECONOMICS Application of economic theory and decision science tools to solve managerial decision problems OPTIMAL SOLUTIONS TO MANAGERIAL DECISION PROBLEMS Managerial enables the use of economic logic and principles to aid management decision-making. Managers are decision-makers and economics should be relevant to give practical guidance in arriving at right decisions. Every manager has to take important decisions about using his limited resources like land, capital, labour, finance etc. to get the maximum returns, therefore, managerial economics, concentrates on those practical aspects of micro-economics which help in decision-making. Managerial economics focuses on the most profitable use of scarce resources rather than on the achievement of equilibrium prices...
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...F.Y.B.A. Paper – I Economic Theory (Micro Economics-I) SECTION – I Module 1 : Introduction Meaning, nature, scope, significance and limitations of micro economics. Ceteris Paribus – use and significance. Concept and types of equilibrium : stable, unstable, static and dynamic equilibrium – partial equilibrium and general equilibrium, positive economics and normative economics, managerial economics. Basic concepts – wealth, welfare and scarcity. Basic tools of economics analysis (equations and functions, graphs and diagrams, slope and intercepts) Module 2 : Consumers Behaviour and Demand Marishallian Approach : Equi-marginal utility, Law of demand – Determinants of demand. Elasticity of demand and its measurement. Price – Income – Cross and Promotional elasticity of demand. Consumer’s Surplus. Hicksian Approach : Indifference curves – properties of Indifference Curve, Consumer’s Equilibrium, Price effect, Income effect and substitution effect – Derivation of demand from Price Consumption Curve (PCC) – Giffen’s paradox. Samuelson Approach : Revealed Preference Theory. Module 3 : Production and Cost Analysis Concept of production function : short run and long run – Cobb – Douglass production function. isoquants – iso-cost line – producer’s equilibrium. Law of variable proportion and Law of returns to scale – Economies of scale – Economies of scope. Concepts of costs : Money and real cost, Opportunity cost, Social cost, Private cost – Derivation of short run and long run cost curves–...
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...Is empowerment a valuable tool for increasing efficiency and effectiveness in today’s organisations? In recent years, the degree of competition in the business world has increase dramatically, business has to be able to adapt with the change of the environment, law, and technology. Many managerial practices have been developed to enable the organisation to increase its efficiency and effectiveness. Empowerment as a tool that focusing on increasing employee motivation to contribute on the organisation has been discussed in widely for years, many scholars have conducted a large number of study on this regard. From various journal articles, this paper will define and discuss the benefit of the concept of empowerment on the organisation in three different aspects, first, the individual empowerment which personal perception on the workplace. Second, empowerment climate which is directly related to firm’s code of conducts as well as structures. Lastly, the relationship across two level or multi-level empowerment will be explained and discussed. The question that is the empowerment a valuable tool for increasing organisation’s efficiency and effectiveness will also be answered There are arguments on the definition of empowerment since this concept is complex and can be explained on multiple dimensions, levels, and disciplines. Definition of empowerment in general was explicitly given by Conger and Kanungo (1988) as “ a process of enhancing feeling of self-efficacy among organisational...
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...industry is almost the same. In such case, response to these firms to their micro environment may differ as each firm will seek to achieve a different success level. The most important factors of micro environment of business consist of competitors, suppliers, customers, public, marketing intermediaries and employees. On the other hand, macro environment is defined as the as major external factors that can influence an organization’s decision and affect its performance and strategies, (Business dictionary). These factors include political, economic, legal, technological, social, cultural and demographic. Managerial decisions are influenced by events that occur in the larger economic environment in which a Company operates. Changes in the overall level of economic activity, interest rate, unemployment rate, exchange rate, political situation, and change in consumer taste both home and abroad creates opportunities and challenges for a firm’s competitive strategy, Paul Farham (economics for managers 3rd edition, page 9). To continue, we going to look at some linkage between the microeconomic decisions and the macro environment. “There is only one definition of a business purpose, that is to...
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...Willoughby BUS620 Managerial Marketing Instructor: Dr. Mary Wright July 2, 2012 Industry Forecasting An organizational environment is composed of “the actors and forces” outside marketing that affect marketing management’s power to develop and sustain successful transactions with its target consumers. Macro-forecasting in industrial settings is basically concerned with the forecasting of markets in total. This concerns the existing level of market demand, while also considering the market’s future. New homes are a product offered within an industry (construction), in which macro-trends could have a major impact over the next five (5) years. An organization’s macro-environment relates to the larger forces having a direct impression on society as a whole. An organization has little, if any ability to sway these said forces, and thus can only adapt its marketing mix to provide a reason for the resulting opportunities and threats. (Weigand, Robert A. 2012) There are many features of an industry that may determine the degree of competition, as well as the relative position of profitability in an organization. Several macro-trends encompass industry forecasting and can impact either negatively or positively within an organization. The macro-trends include: Economic trends: In this particular macro-trend the macro environment analysis...
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...Willoughby BUS620 Managerial Marketing Instructor: Dr. Mary Wright July 2, 2012 Industry Forecasting An organizational environment is composed of “the actors and forces” outside marketing that affect marketing management’s power to develop and sustain successful transactions with its target consumers. Macro-forecasting in industrial settings is basically concerned with the forecasting of markets in total. This concerns the existing level of market demand, while also considering the market’s future. New homes are a product offered within an industry (construction), in which macro-trends could have a major impact over the next five (5) years. An organization’s macro-environment relates to the larger forces having a direct impression on society as a whole. An organization has little, if any ability to sway these said forces, and thus can only adapt its marketing mix to provide a reason for the resulting opportunities and threats. (Weigand, Robert A. 2012) There are many features of an industry that may determine the degree of competition, as well as the relative position of profitability in an organization. Several macro-trends encompass industry forecasting and can impact either negatively or positively within an organization. The macro-trends include: Economic trends: In this particular macro-trend the macro environment analysis...
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...Name: MBA (IB)/3C MBA Course Code: MIB 106 Semester: I Classroom contact hours: 40 hours Faculty: Prof. Ajit K Pandey Prof. Kshamta Chauhan Credit Units: 04 Prof. Harendra K Pandey Self Study hours: 80 hours Course Objective This course aims to integrate various principles and concepts from different fields of economics with typical problems of managerial decision-making and policy formulation in business organizations whether in a local or global context. Understanding the application of economic principles to key management decisions will provide guidance to increase value creation within organizations, and allows a better understanding of the external business environment in which organizations operate. Learning Outcomes At the end of this course the student will be able to • − Use the theory of the firm to model business organizations • − Apply demand theory to establish the elasticity of demand • − Use demand estimation to forecast demand trends and change • − Apply production theory to manage production • − Use cost theory to establish short and long run behavior • − Describe market structures to establish market equilibrium • − Use pricing strategies to enable organizational coherence • − Use macroeconomic principles to address market failures |MODULE |Session no. |Topic |Reference ...
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...Macro and Specific Environment Macro and Specific Environment 2011 Mohd Haizam Bin Idris (ZP00942) Masters of Business Administration 5/1/2011 2011 Mohd Haizam Bin Idris (ZP00942) Masters of Business Administration 5/1/2011 1.0 Introduction In today’s organisation, responding accurately to the factors that may affect the organisational performance. In this case, analysis on macro and specific environment has been analysed to identify the elements of the macro and specific environment that may have an impact to the organisations. Examples of how an organisation responding to the environment has been put together to distinguished from the two environmental factors. Literature review have been made through text book, online portal and journals as well account of company’s experience in responding to such environments. 2.0 Specific Environment Specific Environment refers to forces or institutions outside the organisation in which that the organisation interfaces in the course of conducting its business. In other words, specific environment refers to elements outside the organisation that have direct impact to an organisation. Such forces or institutions are directly relevant to the organisational goals because they have direct and immediate impact to the decision and actions of the managers. The specific environment in each organisation is unique and changes with conditions. The common elements are customers, suppliers, competitors and pressure groups. ...
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... Student ID: 12449 INTRODUCTION: That assignment consists of two parts. In first part, we will discuss the macro environmental factors that will affect BP (British Petroleum), when they have to consider their future strategic decision in order to regain their market position in the USA. In second part, we will suggest a marketing plan for BP to consider to recover from this ‘‘marketing disaster’’. The disaster is the Gulf of Mexico oil platform (which is the Deepwater Horizon) explosion occurred, millions barrels of oil have been leaked in the region for a few months. That infiltration is the largest environmental disaster in U.S. history. The goal of macro environment analyse is to see that marketing opportunity and threats were given by changes and trends in macro environment. Focusing on them for marketers helps to take decision and modifies their strategies and plans. The marketers wish to know which elements of macro environment affect their planning and how they influence future strategies. We will see the strong point and factors of macro environment which are the social and cultural environment, political and legal environment, economic environment, technology environment and demographic environment. And we will consider the “how these factors influence the decisions.” That assignment begins with the definition of the company which is BP. The company is active in the field of fuel all over the world...
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... | | | |Courses offered are subject to changes. | | |Updated information on the courses will be sent to successful candidates by Aalto | | |University, School Of Economics. | | | | | |*The same course can be transferred only as 1 course. | |First Level Modules | | |ACC1006 Accounting Information Systems |International Technology Venturing | |BSP1005 Managerial Economics |TU91.2010 Managerial Economics | |MKT1003 Principles of Marketing |23A00210 Introduction to Marketing (6 ECTS)...
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... Hospitality Management Whittemore School of Business and Economics UNIVERSITY OF NEW HAMPSHIRE, USA and Udo Schlentrich, Ph.D. Associate Professor, Hospitality Management Whittemore School of Business and Economics UNIVERSITY OF NEW HAMPSHIRE, USA ABSTRACT: Departing from the explanatory and descriptive approaches common in many of the academic studies of international expansion, this paper uses a managerial approach to develop and illustrate a process that can assist managers in the formulation of their international expansion strategies and plans. A comprehensive model of international expansion is outlined and applied to determine the optimal country to be targeted for entry by a US hotel firm and the optimal entry mode to be used. The model consists of three sections. Section One (macro assessment) identifies the major external macroenvironmental variables that determine the risks and opportunities of international expansion: market size, market growth and purchasing power; political, economic, legal and regulatory risks; and cultural and geographic distances. Through macro assessment, countries with the optimal risk/opportunity profiles are identified and ranked. Section Two (micro assessment) is applied to the optimal countries identified in Section One to estimate the potential profitability and financial value created (as measured by net present value) of expanding a firm’s operations into these countries. Micro-environmental variables capturing the countries’ local...
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...outside the organisation which affect the organisation’s performance (Robbins, Bergman, Stagg, Coulter, 2009). The business environment is comprised of a set of relationships between agents or stakeholders in the environment – relationships that are changed by individual decisions taken (Mason, 2007). As HSBC operates internationally, its external environment is complex and due to the nature of the industry, the environment is turbulent and instable. The specific environment is the external factors that directly impact on manager’s decisions and relevant to the organisation. The general environment is the broader external factors that influence an organisation, but less influential and direct than specific environment (Robbins et al., 2009). To illustrate, macro factors are economic conditions and technological changes whereas operating factors are unions and competitors. It is important for managers to realize and react to these factors because they can be opportunities or threats to the organisation. Managers should accept the fact that the world is rapidly changing and they have to work towards these changes as there are direct impacts on their managerial roles. External Environment Analysis External environment refers to forces and institutions outside the organisation that can potentially affect its performance (Robbins et al., 2009). A common method to scan the...
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...develop learners’ ability to evaluate the elements of the macro environment and its relation to an organisation. Select an organisation which you are familiar with. Explain the elements of its macro environment and discuss how these element(s) affect your selected organisation. Recommend improvements that can be made by the organisation in managing the macro environment effectively. Criteria Description on the selected organisation Description on the general macro environment elements Identification and discussion on element(s) of macro environment that affects the selected organisation Recommendations to improve management of the macro environment in the selected organization 1.0 Introduction A macro environment comprises the external factors that can significantly impact its performance and ability to compete in its marketplace. These factors are often out of the control or management ability of a company. Factors typically include economic, demographic, political, and technological forces in business. Business owners and managers often spend copious amount of time and effort to assess the overall economic environment in order to determine the number and strength of each factor. Strategies and performance reviews can help owners and managers use the macro environment factors to create a competitive advantage for their respective companies. For companies with a global foot-print, their exposure to macro environment elements is magnified. The Coca-Cola...
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...Macro Context Of Management And Organisations Stream 18: Postcolonial Stream Proposal Pedro Castellano-Masias Universidad Peruana de Ciencias Aplicadas – UPC Escuela de Postgrado en Dirección de Negocios Universidad Peruana de Ciencias Aplicadas - UPC (Postgraduate Business School – UPC) Av. Salaverry #2255, San Isidro, Lima 27, Peru, Sud America Telephone: 511 419 2800 Fax: 511 419 2828 pedrocastellano@hotmail.com pcastell@upc.edu.pe Macro context of management at organisations Prof. Pedro Castellano-Masias Introduction Management literature is frequently involved with the practicalities of bearing organisational control in order to achieve the shareholders interests (Daft, R.; 2000), (Hodge, Anthony and Gales, 1998), (Kotter, J.; 1997). It seems to be assumed that in so doing the organisations ensure their profitability and survival. Main focus is then placed on technologies of control and efficiency while criteria regarding other stakeholders’ interests are not considered. There is little or none awareness whatsoever of the situation that it is imposed to the workers and their families, there is little account of the organisational impact on the community, there is a very limited awareness and attention regarded to the environmental implications of managerial and organisational activities. In addition, not enough is being said regarding the ways in which the past is shaping the future while preserving a system of privileges and exclusion. A social system of domination...
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...Course Title Diploma in Business Administration Module Title Management Project Title The Stress of Caring Group Members Nazima Binte Shiek Rahim Jeevasankari D/o Vararaja Felicia Chua Min Yi Kelvin Teo Meng Hwee Derrick Wang Hua Kai Dilini Kanchana Munasinghe Batch No. DBA (AF) 5/13, DBA (HRM) 5/13 Table of Contents Page 1. Introduction 1 2. Purpose of Plan 1 3. Background Information 1 4. Management Environment 1 - 3 5. Managerial Issues 3 - 5 6. Organizational Behaviour 5 - 7 7. Conflict and Stress 7 - 9 8. Recommendations 9 - 10 9. Conclusions 10 10. References 10 - 11 1. Introduction Management is guiding human and human physical resources into dynamic organization units that attain their objective to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering the service. 2. Purpose of Plan This swot aims to review the management problem faced by Parkway Nursing Care and recommend possible solutions. The objectives of this swot are: * To categorize through various theories the issues faced by the management. * To recommend ways to improve the management system. 3. Background Information Parkway Nursing Care, founded in 1972 in Phoenix, Arizona is a nursing...
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