...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
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...Strategy Simulation Game Name: University: Course: Section: Instructor: Date: Table of Contents Introduction 2 Pure Monopoly 2 Oligopoly 3 Monopolistic Competition 4 Perfect Competition 4 Relation with Porter's Five Force Model 4 Conclusion 6 References 7 Strategy Simulation Game Introduction This paper explains the use of economics in managerial decision making based on the simulation. It describes decision making process of management in different market structures. The main objective of an organization is to maximize the profits in each type of market structure. Quasar Computers has done extensive research for the development of optical notebook. In the Year 2003, the company launched the first all-optical notebook computer branded as 'Neutron'. Neutron uses energy saving optical technology that established it as the market pioneer (Tata Interactive Systems, n.d.). The following pricing and other decisions are taken for this product in the different market structures. Pure Monopoly Quasar was the sole seller for the new and unique computer technology that established monopoly market structure for it. In the monopoly, profit maximization occurs at the point where marginal cost and marginal revenue equate to each other (Baumol & Blinder, 2005). In this scenario, Quasar objective was to maximize the profits because of its monopolistic situation caused by the patent rights on all-optical technology valid for three years from 2003. Quasar was able to control...
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...based on short-term software leasing. The company leased clients a CD containing a risk management application priced at $30000 annually per user and was password protected, after that clients paid by the month for the new password. Organizational Structure Since RiskMetrics Group was a new company, that formerly was a subsidiary of J.P Morgan, Berman used FLAT organizational structure. There were pro’s and con’s by using this kind of organizational structure: Competitive Advantage One of the major competitive advantage of RMG is its payment method. They use leasing payment method to attract costumer and make the costumer financial burden lighter. II. TIME LINE Early 90’s The RiskMetrics Group started as an in-house division of J.P. Morgan, the institutional investment bank. Dennis Weatherstone, chair of Morgan in the early 1990s, wanted a simple, concise daily report that measured the company’s proprietary risk at the end of each day. Why? Because the needs for accurate and clear measure of exposure to market volatilities. In the wake of such financial disasters such as Orange County, Barings, Daiwa and Showa Shell, banks and financial service firms recognized the need for accurate, clear measures of exposure to market volatility. The risk management tool known as value-at-risk, or VaR, grew out of this daily report. VaR attempted to answer the question of “how much can I lose with a 95% confidence” using simple mathematical concepts of variance and probability. ...
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...Business » Encyclopedia of Business, 2nd ed. » Man-Mix » Managerial Economics MANAGERIAL ECONOMICS Ads by Google 1 year diploma courses - Info on Courses, Scholarships & Admissions from IDP Experts. -india.idp.com/18001022233 SWOT Analysis Tool - Get a free 30 day trial of Mindjet the leading Mindmapping Tool! -www.Mindjet.com online gcp courses - Online, Classroom & Blended Courses Certification Programs & More! -www.cfpie.com CAT Scholarships-T.I.M.E. - Must for all cat and mba aspirants Register Now-Upto 100% scholarships - www.time4education.com/ttse Photo by: nyul Ads by Google MBA - Supply Chain Mgmt. 100% Online backed by Textbooks Academic support,E-Library.Join Now utsglobal.edu.in Rapid eLearning Train your employees with Rapid eLearning, cut your business costs www.niidtech.com MBA Distance Education Online 1 Yr MBA @ 29000. Approved from AIMA India & IAD UK. Enrol Now www.iibmindia.in Papermaking Technology Download white papers on new papermaking machines and processes www.risiinfo.com/whitepapers Decisions made by managers are crucial to the success or failure of a business. Roles played by business managers are becoming increasingly more challenging as complexity in the business world grows. Business decisions are increasingly dependent on constraints imposed from outside the economy in which a particular business is based—both in terms of production of goods as well as the markets for the goods produced. The impact of rapid technological...
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...PROGRAMME STRUCTURE FOR ISBE (PG) |S No |Subject |Credit | |1. |Business Statistics |3 | |2. |Operations & Optimization Research |3 | |3. |Economics for Managerial Decision Making – II |2 | |4. |Management Information System & KM |2 | |5. |Human Resource Management |2 | |6. |Financial Management |2 | |7. |Executive Communication |6 | |8. |National Economic Planning – I (Presentation Only) |2 | |9. |National Economic Planning - II |2 | BUSINESS STATISTICS (As per University...
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...Managerial Economics Case Studies Institutional Affiliation Managerial Economics Case Studies #1. Three aspects of organizational architecture The three vital components of organizational architecture are: a) assignment of decision rights; b) methods of rewarding individuals; and c) structure of systems to evaluate the performance of both individuals and business units. First, assignment of decision rights involves giving the responsibility of decision-making to top-level executives. It is imperative that an organization is able to delegate the duty of making a decision to a manager who has relevant information and knowledge on the internal and external factors that affects the operations and goals of the organization. The architecture of an organization and its environment will determine who will be the decision-maker for the company. In some organizations, the top-level executive may have them most relevant information and thus, a centralized decision-making process can be adopted. There are instances when the lower-level employees may have the most relevant information, thus, decision-making rights become decentralized. Second, methods of rewarding individuals determine how the organization will provide incentives to its employees. Organizational goals and employee’s productivity play great roles in determining a scheme of remuneration. Some organizations repay their employees through financial rewards such as the monthly wage, and cost of living allowance, and other benefits...
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...Introduction This review paper shines a light on how vital the use of economic tools is in making managerial decisions as reflected in the simulation. Decision making process of management is described in different market structures. Just as it pertains to any for-profit business organization, the goal is to cut and maximize profits in each type of market structure. Based on the information provided in the simulation, Quasar Computers were involved in an extensive research in developing a pioneer product “the Optical Notebook.” In 2003, the company launched the first all-optical notebook computer and branded it the “Neutron”. This product is described as an energy saving optical technology with its rechargeable batteries capable of lasting up to three days; hence, transcending it into a leading technological product in its unique class. With the assistance of senior executives in the company, the decisions on operational and business strategies relative to a variety of market conditions are taken and discussed. Monopoly Quasar emerged as the only player in the market for its unique optical notebook computer; therefore, establishing a monopoly market structure. Within this monopolist market structure, maximizing profit tends to occur at the point where marginal cost equals marginal revenue based on the result shown by toggling the demand curve. In the initial scenario, it was presented that Quasar had the patent rights on all-optical technology for three years from the launch...
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...Managerial Economics: Bridging the gap between economic theory and business practice Introduction 3 Definition 3 Economic Theory Vs. Managerial Theory 4 Decision-making 6 Scope of Managerial Economics 6 Positive versus Normative Economics 7 Positive Economics 7 Normative Economics 7 Examples Demonstrating How Managerial Economics Translates Economic Theory into Business Practice 9 Demand Analysis and Forecasting 9 Cost and Production Analysis 10 Inventory Management 10 Advertising 11 Pricing Decision, Policies and Practices 11 Profit Management 11 Capital Management 12 Responsibilities of a Managerial Economist 13 Conclusion 15 Gadgets International: A Case Study Nature of the Case Study 16 About Gadgets International (GI) 16 Market/Industry Structure 17 Firm’s Objectives 19 Using Economic Theory to Attain Gadgets International’s Organizational Goals & Objectives 19 Optimal Output Level & Pricing Strategy 19 Inputs and Costs 22 Accommodating Change 24 Promoting Growth 25 Conclusion 26 Managerial Economics Bridging the gap between economic theory and business practice Introduction The science of Managerial Economics has emerged only recently. With the growing variability and unpredictability of the business environment, business managers have become increasingly concerned with finding rational and ways of adjusting to an exploiting environmental change. Managerial economics generally refers to the integration of economic theory...
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... Syllabus School of Business ECO/561 Version 7 Economics | Copyright © 2012, 2011, 2010, 2009, 2008 by University of Phoenix. All rights reserved. Course Description This course applies economic concepts to make management decisions. Students employ the concepts of scarce resources and opportunity costs to perform economic analysis. Other topics include supply and demand, profit maximization, market structure, macroeconomic measurement, money, trade, and foreign exchange. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. The discussion question points are now combined with the participation points for each week. You, as the instructor, may create a separate line item for discussion question points if you choose. Please note that some assignment points may have changed. Course Materials Ball, L. M. (2009). Money, banking, and financial markets. New York, NY: Worth Publishers. McConnell, C...
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...What is economics? What role does economics play in your personal and organizational decisions? Provide an example of the role of economics in decision making. Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. In my personal like economics plays a good role in our finances. At the moment we deal with only one income and with it comes the decision making of food, clothing and bills. Things like how much is available for eating our verses cooking a hot meal at home. In regards to the organization I work for I have to say that with my pregnancy the decision making of taking days off is the example. If I don’t go into work I will be losing leave time from that day and with it some of my maternity leave, but some rest will be gained. In the other hand staying home may cause me more in electricity bills. It can be an economic gamble. Identify a recent purchase of an important capital item by an organization with which you are familiar. What factors affected the decision to purchase this capital item? How important was the productivity associated with other inputs and their prices? How did the addition of this capital item affect the productivity of the existing workforce and the wages they earned? My article is actually of an item that has been taken from an organization that I’m familiar with, CVS Has Ended Sales of Tobacco. Even though the production...
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...Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) By and large, managerial decisions are not affected by either microeconomic or macroeconomic forces. B) Managerial decisions are affected primarily by macroeconomic forces. C) Managerial decisions are affected by both microeconomic and macroeconomic forces. D) Managerial decisions are affected primarily by microeconomic forces. 1) 2) Walmartʹs decision in 1994 to continue operating stores in specific cities in Mexico when other firms were pulling out would be best classified as: A) a microeconomic decision. B) a macroeconomic decision. C) both a microeconomic and a macroeconomic decision. D) neither a microeconomic nor a macroeconomic decision. 2) 3) Which of the following would be considered an example of a macroeconomic problem? A) Should Microsoft reduce the price of its Windows operating system? B) Should JP Morgan Chase increase the interest rate it charges its credit card customers? C) Should Mitsubishi eliminate one of its production shifts? D) Should the federal government extend the eligibility period for unemployment benefits? 3) 4) Walmartʹs entry into the market in Mexico had the effect of: A) reducing competition and raising the prices of many of the goods it sells. B) increasing competition and raising the prices of many of the goods it sells. C) increasi...
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...return on the investment and costs they have input. The diagram below shows how firms produce at the profit maximisation point (MC=MR) and what costs they incur (point C). It also shows that most firms that follow a profit maximizing strategy incur a profit (price is greater than cost) . Figure 1 From Wikipedia.org Figure 1 From Wikipedia.org Although profit maximization looks like the most viable business objective that a firm can adopt, the majority of firms tend not to follow it. Research done by economist Shipley in 1981 states that “of 728 firms studied only 15.9% are true profit maximizers” (Sloman, Wride (2009). Economics. 7th ed. London: Pearson Education. p7.). Baumol in 1959 and Williamson in 1963 stated that this was because managers were more focused on sales revenue since their salaries were matched with how much was actually sold. (“Economics” John Sloman, Alison Wride). The Baumol theory states that firms will look to maximize its total revenue in the long run subject to its profit constraint (the minimum acceptable profit range). This aspect is shown in the diagram below. Figure 2 Graph taken from slideshare.ne . Even though this graph deals mainly with profits, its purpose is to illustrate the main...
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...Market Structure is defined by the number of firms who are competing in that market, the factors that differentiate the firms from each other, the similarities between the firms, and any obstacles that would exist to any firm that wanted to enter the market. The level of competition exerts significant influence over the type of market structure that emerges and leads to what payoffs, if any, would result from entering that market. This paper will go into detail on the many distinctions between the different market structures, the obstacles to entering these markets, and how each type of structure maximizes profits. Markets are broken down into a few various categories. These categories are perfect competition, monopolies, monopolistic competition and oligopolies. An economist, citing economic theory, may express a preference to one type of structure based on the outcomes they can yield. The structure of each structure type is based on the traits of its business types. The attributes a business will display changes with the number of companies in that particular market. Management of prices, product types and entry barriers for new companies and market competition that do not depend on price are the attributes of a market. The capacity to control the prices of a company’s goods is price management. This is a critical element in market structure. Any company that can enjoy the benefits of a monopoly structure has ultimate price control for its goods. Those...
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...costs theory and the imperfect markets. Williamson’s successful complementation of the Coases approach of the firm as an alternative to reduce the cost of using the price mechanism, with Herbert Simon’s organizational theory, gave birth to the Transaction Costs Theory (TCT)1. This meant a big step, which evolved the theory of the firm, from its obsolete neoclassical toots and assumptions -of a perfect competitive market and a perfect rationality-, by adding the issues of bounded rationality and opportunism to Coases work2. Williamson opened the path to new ways of conceiving and complementing the theory of the firm in general, and the transactions costs theory in particular. By enabling to the economic theory the enhancing and the building of new connections between cognitive psychology and economics. Connections that have allowed, among other things, the development of a larger view in the roll of the firm, no only as an avoider of costs, but also as a creator of knowledge. All in better accordance with the modern firms logic of making business. In order to understand the transaction costs theory, one has to comprehend that the competitive market structure, is only a reference to be taken into account, when one analyses the observed structure of markets, which are called “imperfect competitive”, For the market is not given under a homogenous form to all economic agents, but is continuously changing under agents decisions and behaviours 3 . Further more...
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...The South African Competition Act of 1998, implemented on 1 September 1999, establishes a range of criteria for evaluating mergers and company practices that are deemed to harm economic efficiency, among other objectives. In particular, the Act prohibits a range of practices if the firm is ‘dominant’, including charging an ‘excessive price’, engaging in an ‘exclusionary act’, or price discrimination (Sections 8 and 9). ‘Dominance’ is defined as having at least a 45 percent market share, or less than 45 percent if the firm has market power (Section 7). A range of horizontal and vertical restrictive practices are also prohibited (Sections 4 and 5). For the implementation of the Act the links between structure and behaviour are therefore extremely important. This paper seeks to explore these relationships in a particular industrial sector, that of plastics, and in so doing to highlight issues in the implementation of competition policy. Plastics manufacture covers a supply chain or filière which runs from polymers to finished plastic products. a range of industries such as motor vehicles, packaging, textiles and clothing, construction and furniture. This implies that plastic products are more important in the development of manufacturing than their share of manufacturing production of 2.8 percent would suggest. The levels in the supply chain differ...
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