Understanding Significant External Forces. The management has to identify all the important factors that influence a firm. These factors can broadly be divided into two categories. Managerial Economics plays an important role by assisting management in understanding these factors. a.
Economics is about logic and reasoning. Many professionals deal with economics on a daily basis and must make decisions in situations where resources are scarce. It is used in many fields of employment such as government, finance, business, administration, law and many others. Through the study of economics, we can learn from situations such as the Great Depression, poverty, and wealth, to figure out how to avoid such situations in the future. We need to know economics in order to understand how to live and exist in our world today.
Explain how the influences of globalisation and costed based competition can impact on the operations process and valuate the importance of operations strategies in managing those A business has four main areas that are interdependent on each other to run the business smoothly and successfully. These areas are: Finance, Human Resources, Marketing and Operations. The one we are concentrating on today is operations. Operations is all about production. It is the process involving the transformation of inputs into outputs that is; turning resources and raw materials into final products ready for consumers.
“Economic data and the signals they contain are central to business conditions analysis.” Economists spend much of their time gathering, interpreting, and manipulating macroeconomic data. This is important because the data they obtain provides signals which are used to predict what will happen in the trade over a set period of time. Signals are divided into two categories that economists focus on, and they are direct and indirect signals. There is a difference between direct and indirect signals. Direct signals are signals that are measurable in terms of validity and reliability.
In this chapter, candidates should be able to: • Define the nature of the economic problem (finite resources and unlimited wants) • Define the factors of production (land, labour, capital, enterprise) • Define opportunity cost and analyse particular circumstances to illustrate the concept • Demonstrate how production possibility curves can be used to illustrate choice and resource allocation • Evaluate the implications of particular courses of action in terms of opportunity cost. 1. SCARCITY, CHOICE AND OPPORTUNITY COST 1. Unlimited Wants Human beings, in order to survive need a lot of things. Some of these things are very important for our existence.
The economic system is a combination of regulations put into practiced by the firm and consumers in a country. The classification of the system also can be identified by the use of economic resources to overcome the economic problems. However, how to solve the fundamental problems of the economy is depends on the economic system that have been practiced. Economic systems exist to provide goods that can satisfy the needs of the individual are not limited to the use of scarce resources. Economics system functions is to determine who among the decision maker will make effective decision for the economy.
Therefore, any organization must constantly invest in human resource development even during periods of recession. However, the determination of the extent to which an organization can invest in terms of human resources development depends on the financial capabilities of the company or organization (Mathis, 2006). Finances will also be carefully considered in determining the target for training and development, because it should jive with the basic
The critical components and subassemblies that make a major difference in the performance and cost of the finished product are currently outsourced to external suppliers. 1.3 The desired outcome After conclusion of this business case it should be clear how to link insourcing/outsourcing decisions to strategic corporate requirements, including the need to define core competencies. Furthermore the qualitative and quantitative considerations associated with
For example, the main objective is to find out the causes of unemployment.”(Schaeffer & Presser, 2006) The sub objectives will cover to find out the factors affecting it, like age group, geographical, cultural. The main and sub objectives must be well defined and precise so the research process is smooth and fast. The third step is developing the research design. One has to decide apt design depending on the time constraints, financial constraints and the skill set available. It is very important to calculate and be aware of the cost of research and the available facilities and resources.
Budgetary control is described as the process of planning, controlling, coordinating and motivation through money values and departments within an organization (Ryan, 2006), and has lately taken a greater importance in performance management. Today, many issues has since been raised due to the increasingly relation between corporations and the capital market. This essay will analyze and define the advantages of budgetary control and simultaneously examine its limitations pertaining to the capital market. Organizations are a composed of many segments covering a diversity of functions and programs. Budget is a translation of an organization strategic plan into actions that used to direct, coordinate and providing more structure to an organization and at the same time it is also a motivation for the employees in attaining the organization goals (Biznik, 2008).