Discuss how managers use microeconomics for decision making
Prudence is part of our roster of professional writers with a regular contribution to our business strategy sample collection. As a Market Research Analyst by profession, Prudence brings her training in business analysis as well as real life expertise from the world of professional business consulting, to our case study solutions. The result is a robust collection of superb premium business strategy case studies tailored for student revision, faculty and researchers.
Latest posts by Prudence K. Magezi(see all)
The success of any business is highly dependent on good decision-making. This is because a country’s macroeconomic parameters have a notable impact on all businesses operating in the country. Be it the cost of capital, national and international demand for products and services as well as investments, acquisitions, and profitability, they are all influenced by a country’s macroeconomics. Each and every business is embedded in the general economy and cannot under any circumstances escape its fortunes and deviations. It is thus essential for managerial decisions to be made with macroeconomic parameters in mind. In fact, managers should be able to adequately analyze macroeconomic factors in order to ensure that they are making effective organizational decisions.
This report discussed why it is important for a manager to consider macroeconomics while making business decisions.
HARVARD
Citation Here
Citation Here
APA
Citation Here
MLA
Citation Here
CHICAGO
Citation Here
Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Discuss how macroeconomic constraints can decrease or increase product demand
- Discuss how microeconomic factors affect the demand for products/ services and how managers can use them to make better business decisions.
- Understand the economy as a whole and the impact of fiscal and monetary policies on individual businesses
1.0 INTRODUCTION
For a leader to be considered effective, he or she must have the ability to handle a number of challenges and threats that affect an organization’s optimal performance (Smith, et al 1997). This is mainly because many of the decisions faced by business leaders are intricate and have the potential to put the future of a company at stake. Business leaders use microeconomics in decision-making to help them understand the economy as a whole and the impact of fiscal and monetary policies on individual businesses. By understanding this information, business leaders are able to make more informed decisions about their operations. The study of microeconomics provides an analytical tool to examine the market mechanisms and helps business firms to take decisions about their production and pricing policies.
The study of microeconomics helps managers understand how best to allocate resources in the production of various goods and services especially at a time when productive resources are scarce in the economy. It helps them decide on what products to produce, how much to produce, and for who. Assessing microeconomics helps businesses to forecast demand for their products/ services. This is because the demand for a company’s products/ services is dependent on many variables; the demand for products changes in response to changes in a firm’s product prices, prices of substitutes or complementary goods, consumer income, changes in tastes and fashion, expectations about future changes in price, changes in demographics, and change in total population, among others. Considering the fact that macroeconomic constraints have the potential to decrease or increase product demand, decisions made by company managers can expand or reduce production.
The study of microeconomic theories and concepts is thus very important in managing a firm’s operations because it helps in understanding the market situations better and helps the managers or business owners to successfully operate their firms, predicts future demand, and make decisions based on different microeconomic variables.
Cancel anytime…right from your account dashboard
NOT YET READY TO SUBSCRIBE? Try our other options below
Get a personalized on-demand assignment fast **
Purchase This Assignment On Demand
100% original custom written assignment
Zero plagiarism (checked via Copyscape)
Harvard/APA/AMA referencing
1750 words-(7 pages)
Price: £ 98.00
Services We are Offering
We are more than a free study and revision tool.
We also provide
on demand research and custom writing services.
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).
