Economics is the study of manufacture, distribution and the consumption of goods in a market structure. Economics is a social science that revolves around people’s life starting when they are born till when one dies…
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The government is the referee in making sure that there is fairness in the business. Economics being a social science it revolves the behavioral aspect of the human life which is imposed by the scarcity of resources in a person life. In a market the interaction between the sellers result what is called economic equilibrium which results the issue of competitiveness in the market. The term economics is a broad discipline that consists of microeconomics and macroeconomics. Microeconomics Microeconomics is a branch of economics that mainly deals with the decision that the agents of the market make while conducting business. The agents of the market are the people and businesses. In essence the study of microeconomics deals with basics of the market. It is more of specific than general. Microeconomics tries to bring the relevance of the small agents in the market that could be neglected but are very important in the study of economics. The consumers provide the market while the suppliers and the businesses provide with the goods and services. The major dwelling of microeconomics is in the supply and demand forces that operate in the market. The supply forces refers to the availability of goods and services to the market while the demand refers to the availability of customers of various products and services in the market. These forces are crucial in the determination of the price of various commodities in the market. The higher the demand it would mean that the goods and services are in short supply while the lower the demand it means the goods and services are in high supply. Thus in high demand the prices are in sky rocketing while in low demand the price are very low than normal (Zhang, 2005) Macroeconomics This is a branch of economics that mainly the whole industry in the market rather than a specific entity like a company. It tries to look an economy at a wide view e.g. the general economy of the country. In macroeconomics, issues such as the GDP are keenly followed and how they are affected by factors such as price levels, unemployment and the rate of growth. The two terms lead to a better understanding of economics. There could be some differences between them but they still deal with study of production, distribution and consumption of goods. In our module we have greatly dealt with microeconomics which entails eh study of the behavioral aspects and factors affecting the agents of economy. There are various theories that try to explain the term economics. These are the supply and demand theory and the classical theory. The supply and demand theory of economics mainly entails looking at the two forces in the market that entirely explains the relationship between the buyers and sellers. The other theory is the classical theory which entirely concentrates on the equilibrium in the market which operates in the market when the market is not interrupted. The theory mainly stresses on the factor that the market should operate freely without any interference (Adams, 2008). Analytical tools in making decisions concerning increasing commodity price The price of any product affects the sales of any company, which exponentially affects the profits acquired by the company. In any decision making process of any profitable company coming up with price rise is usually a tricky situation as it directly touches on the customers’ feelings. At the price level is where the company directly interacts with the customers. Price increase cannot be done overnight but it is usually as a result of many factors that contribute to this course. It is mainly as a result of
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This report is being carried out to look at some of the techniques available for managers to aid them in making the ever increasing complex decisions that they encounter on a day to day basis. The report begins with looking at project planning and analysing its importance to the implementation of any project.
By taking into consideration all the aforementioned theories and concepts, the discussion in this paper will intend to demonstrate and analyze the managerial decisions taken by Hyundai Sonata (i.e. a particular brand by Hyundai Motor Company) being into competition with Toyota Camry in the international automobile industry.
During the course of this research, the following takeaways are expected to be obtained: (1) understanding of consumer behavior in relation to incremental price changes in selected models of Toyota; (2) determining the extent of impact that price movement has on car owners and potential car buyers; (3) improving future price strategies.
Firstly, identify the problem; then identify different alternative solutions or criteria; thirdly, select the most appropriate action; finally, implement the action and assess its outcome. Simon’s normative model is based on decision maker’s bounded rationality, which means decision makers restrict themselves to certain constraints that guide the decisions or actions.
According to Yates (2003, p. 4), management decision making can be informed by a body of knowledge consisting of principles generated through research and practical experience. This study seeks to discuss the importance of analytical skills in management decision making.
The Pareto Analysis makes use of the Pareto Principle that uses the idea that 80% of the advantages of doing any work are derived from doing just 20% of the work. When put in the context of quality improvement, the Pareto Principle argues that key causes (20%) bring about the majority of problems (80%).
can be improved 9 6.0 Conclusion 11 7.0 Bibliography 12 Title “Select three decision making tools studied in the Managing Decisions Modules and evaluate their advantages and disadvantages. Discuss how you may use these methods to improve decision making in business.” (2860 words) 1.0 Introduction Basically, decision making is regarded as one of the most- if not the most important aspect of all managerial activities (Schultz et al 2004, p.163).
The intervals are shown on the X-axis, and the number of scores in each interval is represented by the height of a rectangle located above the interval.
The cumulative frequency is the running total of the frequencies. On a graph, it can be represented by a cumulative
“The political system of Ukraine, which is to much larger extent dominated by personal decision-making than by institutions, is not only a source of instability, but also a structural problem for the integration of
Fundamentals of the particular safety management are actually the reporting of investigation based date on the safety related events. Once the event is reported, an airline has the obligation to investigate the event and provide the
2 Pages(500 words)Case Study
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