Meaning and Scope of Managerial Economics - 2130 Words

MEANING SCOPE AND METHODS OF MANAGERIAL ECONOMICS INTRODUCTION Emergence of managerial economics as a separate course of management studies can be attributed to at least three factors.: (a) growing complexity of business decision making process due to changing market conditions and business environment (b) consequent upon, the increasing use of economic logic , concepts theories and tools o economic analysis in the process of business decision making (c) Rapid increase in demand for professionally trained managerial manpower The growing complexity of business decision- masking has inevitably increased the application of economic concepts, theories and tools of economic analysis in this area. The reason is that making an†¦show more content†¦Example Footwear Industry: Shoes may became outdated because fashions change very rapidly Dressmaking Industry : As fashion changes very often, the manager of a dress making industry will have to keep abreast of changing fashions. The Problem of forward planning When a manager has to plan for the future he has to make an accurate forecast of the position of raw materials, the prices of factors of production, the market prices of his products , the demand for then ,etc. SCOPE OF MANAGERIAL ECONOMICS In general, the scope of managerial economics comprises all those economic concepts, theories and tools of analysis related to demand prospects, production and cost, market structure, level of competition and general business environment to find solutions to practical business problems. In other words, managerial economics is economics applied to analysis of business problems and decision making. The areas of business issues to which economic theories can be directly applied can be broadly divided into two categories : 1. Microeconomics app The scope of managerial economics emanates from the solutions it offers to the manager who is confronted with problems such as : CHOICE OF COMMODITY what to produce CHOICE OF SIZE OF THE FIRM how much to produce CHOICE OF TECHNOLOGY choosing the factor combination CHOICE OFShow MoreRelatedWeek 4 Best Buy Case Study Homework Assignment904 Words   |  4 Pages09/03/2016. Through the course of the history of Best Buy as a firm, during and over the years, managerial changes have occurred, having being infrequent (meanings, rare, as uncommon, not occurring often, being exceptional) through internal leadership, had some-to-little impact about Best Buy’s overall strategy, because of promotions and managerial succession or managerial failure(s). Why did managerial have any succession or failure(s) have little impact? It seems to me; little impactions may escalateRead MoreObjectives of an Accounting and Finance Manager1143 Words   |  5 PagesObjectives of an accounting and finance manager In a more and more competitive and dynamic market place and industry, economic agents have to continually devise and implement strategic courses of action that ensure their long term success and stability. In this equation, the role of the organizational managers suffers some notable changes, in the meaning that they are no longer simply expected to carry out executive decisions and continually seek profitability, but as they become more responsibleRead More Aristotle Essay777 Words   |  4 Pageswere collected and arranged by later editors. Among the texts are dissertations on: logic, called Organon; natural sciences, called Physics; nature, scope and properties of being, called Metaphysics; and ethics, called Nicomachean Ethics (dedicated to his son Nicomachus). Some other works include his Rhetoric, his Poetics, his Politics, and his Economics. Methods Aristotles philosophy laid its principal stress on biology. Aristotle regarded the world as made up of individuals (substances)Read MoreAdvantages And Disadvantages Of International Expansion1019 Words   |  5 Pagesis FINCA in Central Asian country with good income on loan interest turnover to local entrepreneurs. Depending on type of balance sheet (geographically separated or not) it is also risk management tool. Santander operates under multiple licences, meaning that balance sheets are separated and insolvency in HQ or any other country where bank operates. Lloyds on the other hand operates under the single licence which is cheaper (banking licence costs around $100kk/year,  £15mln Mondo startup bank) howeverRead MoreCase Analysis : Operations Decision1560 Words   |  7 Pagesdemanded for the firm when there is an increase in price, decrease in price or generally a change of prices by of its product. This is the ideal representation of a firm in an oligopoly market structure. Stackelberg et al. (2011), argued that the scope for individual action is known to be far greater in this case than in the case where the product is differentiated. In other words, one individual seller in this market would not stand to lose in the event that he or she decides to charge a higherRead MoreFactors Fav oring Managerial Effectiveness : A Study Of Select Public And Private Sector Organizations Essay1509 Words   |  7 PagesAbdul-Azeem, M. and Fatima, S. (2012) ‘Factors favoring managerial effectiveness: a study of select public and private sector organizations’, International Journal of Business Economics and Management Research, 2(1), Pp. 1-27. Adewuyi, D. (2002) ‘Comparison between school effectiveness characteristics and classroom instruction strategies in the United States and Nigeria’, Council for the Development of Social Science Research in Africa, XXVI, Pp. 263-287. Agarwal, V. (1983) ‘A study of stress pronenessRead MoreWeek 4 Best Buy Case Study Homework Assignment1164 Words   |  5 PagesJackson Sr. 09/03/2016. Through the course of the history of Best Buy as a firm, during and over the years, managerial changes have occurred, having being infrequent, like rare, uncommon, not occurring often, nor being exceptional, through internal leadership. For this purpose, had little to some impact about Best Buy’s overall strategy, because of promotions and managerial succession or managerial failure(s). In contrast, management does have either succession, or failure(s). Failures are consideredRead MoreA Comparative Analysis Between Aboriginal and Chinese Cultural Differences1504 Words   |  7 Pagesglobalisation and internationalisation of trade in resources, especially human capital, has made managerial of culture differences ever so important as to understanding the different variables (Hofstede G, 2010). In this paper, the Power Distance Index (PDI) of both Chinese and aboriginal traditional cultural value and belief in family, social life and workplace is going to be examined under the scope of Hofstede’s dimensions. To a truthful stereotype, both culture heavily emphasis upon power distanceRead MoreManagerial Questions On Managerial Economics1736 Words   |  7 Pages MANAGERIAL ECONOMICS MANDIP SINGH SETHI K1300050 TABLE OF CONTENTS INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 TYPES OF DISECONOMIES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 DECENTRALIZATION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 CONCLUSION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..7 REFERENCE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.8 What are managerial diseconomies of scale and what, if anything, can be done about this phenomenon? DecreasingRead MoreStrategic Fit1574 Words   |  7 Pagesits resources and capabilities with the opportunities in the external environment. The matching takes place through strategy and it is therefore vital that the company have the actual resources and capabilities to execute and support the strategy. Meaning of Strategic Fit The contingency theorist’s argument that performance outcomes are maximized when a firm achieves an alignment or â€Å"fit† between a firm’s external environment, its internal factors and its strategy has been well established in the literature