We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

ECON 3551: Managerial Econ & Bus Strategy - Essay Example

Comments (0)
Name Professor Class Date Managerial Economics and Business Strategy The interviewed person is a department manager who has a decision making capacity as well as accountability for the performance of his department. The first question that was asked was to determine if economics is useful in his job and if it is, how does economics relate to his performance in his job…
Download full paper
ECON 3551: Managerial Econ & Bus Strategy
Read TextPreview

Extract of sample
ECON 3551: Managerial Econ & Bus Strategy

Download file to see previous pages... He said that even if he is a manager, he also has a boss and his boss has a boss and ultimately, it will redound to the various stakeholders and society in general who are the ultimate boss of the company. As a manager, he is given metrices that he has to meet in what they call KRA or Key Results Area. Part of such metrices are economic indicators such as increased productivity, low turnover rate, etch. For me, he likened it to my grade which I have to meet or exceed in order pass a subject. Concretely, he said that if 75 is a passing mark, in his job, that would mean an X number increase in productivity. If he meets and exceeds it, then he could get a raise and his employment is secure in the same manner that if I will get a grade of 75 or above, I will pass the subject. Inversely, if he fails to met his metrices, he will be in trouble in the same manner that a student will be in trouble if he or she will not be able to met the required grade. To achieve such metrices, he is given a budget to work of which he has to plan on how spend and allocate it to met if not exceed his targets. The respondent said that this is where economics comes in his department. He has a limited resources to achieve a certain objective and he has to plan it carefully to achieve the optimum output in accordance with the target in mind. For example, to achieve an additional 10,000 units in production, that could mean hiring an additional personnel and procuring new equipment. But it does not mean that more employees and machine would automatically equate to higher productivity. At some point, productivity will decline because there will be people and more machine doing the same thing in what he call in economics as the principle of marginal diminishing return (The Law Of Diminishing Marginal Returns). In instances where he has to ask for additional personnel or equipment, he has to justify it in economic terms. For example, in proposing the additional employee, he would have to mention that there is an unmet production requirement because of the lack of personnel. He could use terms such as “under capacity” indicating that the equipment or the plant in general is not performing at its optimum. In a company, this could mean an expense in the form of opportunity cost where income that could have been earned by those units manufactured was not realized because the plant is not performing at its optimum. There are also other factors that has to be considered internally such as overhead cost that should be considered when hiring additional personnel and equipment. It will not only be the salary that will be added as one of its cost but also added electricity, office equipment and maintenance in the case of the additional equipment. The manager also explained that to be effective, one does not only look inside the company because outside factors such as our general economic condition can affect the business. When I was asked him how, he explained that this is important in procurement and the principle of law of supply and demand. He said that if economic condition is bad and manufacturers of the materials you need became conservative in their production to protect themselves from risk, you might want to hold off your purchase because most likely the materials will be expensive. When asked why, he explained that ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Econ 336
India has been measured to witness population explosion presently and therefore calls for the immediate requirement of putting a check on its population growth. It has been assessed in this regard that although China recorded the highest population but it has been competent enough to effectively check its population.
10 Pages(2500 words)Essay
Competition on the other hand however, deals with the removal of any restrictions on the trade in order to ensure that the competition between different players in the market works in healthy and constructive manner. Anti-trust laws are therefore formulated in order to ensure that no one in the free markets can actually dominate the market by creating any kind of barriers or restrictions in order to control the market.
6 Pages(1500 words)Essay
True to the fact supported by economics, people have only limited resources which they use in order to satisfy their never ending needs and wants. Thus, they use these resources in order to make choices which will provide them with the highest level of utility and satisfaction.
3 Pages(750 words)Essay
Transaction cost economics has had a commanding influence on the discipline of strategic management. Undoubtedly, of all the sophisticated current subfields of economics, transaction cost economics has the highest resemblance to strategic
7 Pages(1750 words)Essay
Econ Essay
Grant, T. “Ontario needs to pull up its socks: task force”. November 23, 2010. The Globe and Mail. November 26, 2010.
5 Pages(1250 words)Essay
Mainly, this is evident both in the developing and in third world states, which have adopted the free trade despite their economies experiencing some diverse challenges (Bhagwati 25). For
1 Pages(250 words)Essay
Econ 1
Apple is Smartphone Company founded and deals in phone technology around the globe. Decision is made from the top to the bottom (Klaiber, Ben, 2013). Management generates the ideas and passes them on to the
1 Pages(250 words)Essay
Wk2 econ
Brazil should specialize on producing clothing, because the country has lower opportunity costs, compared to production of soda. Marginal Rate of Transformation represents the slope of Production Possibility Frontier in a certain
3 Pages(750 words)Essay
Edit application
I moved to Canada in 2007 and spent three years finishing Grade 10 to 12 inclusive of English Second Language. In Grade 12, I scored an average grade of 92 and was offered a scholarship to high school. After high school, I was accepted at the
3 Pages(750 words)Essay
A grand cinema is the prime venue that enriches lives by the use of art of films offered at prime venues along the central business districts or in major residential places1. In most cases, it is a live streaming event that
9 Pages(2250 words)Essay
Let us find you another Essay on topic ECON 3551: Managerial Econ & Bus Strategy for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us