Finance is the most important aspect of any organization. Any activity of the organization, no matter how meticulously planned is dependent on the funds available with the organization. If the funds available within the organization are inadequate, the firms will rethink their choices and plan according to the available funds. The funds crunch may leave […]
One of the external environmental factors that affect the decision making is economic environment of the nation. Economic environment in modern world is very dynamic .It includes various external factors as well as internal factors like employment, interest rates, which effects the business. With the growing economy, countries experience an increase in per capita income,
Provide an example of a moral or ethical hazard an organization might face relating to labor markets. How can this affect employees, an organization, and the economy? The perfect example for the moral hazard in the labor market is principle-agent relationship and the problem attached to it. An arrangement in which one entity legally appoints
Discuss the importance of analyzing competition within an industry to better appeal to potential candidates. SWOT (Strength, Weakness, Opportunity, Threat) analysis helps provide a framework to reflect on the firm’s ability to overcome barriers (or threats) and avail of the opportunities emerging in the Environment. The dimensions of internal capabilities have to be relevant because
Would an organization benefit from using direct or indirect price discrimination. Why or why not? Provide an example. Price discrimination is the practice of charging different prices from different customers for the same product. Yes, organization benefit from price discrimination. Read also Skimming Pricing Strategy In direct price discrimination, a monopolist gains maximum as he
Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today? Rational decision making can be very beneficial in both the business and personal worlds and differs from the behavioral decision making processes in several ways. Business
Computer Management You are to select 1 business that does not already have a Web site, and develop an Internet strategy for it. Most large corporations already have Web sites, so you may have to think of something on a smaller scale such as a local bike store. Sole proprietorship businesses that provide services like
According to Coase’s theory of the firm, why do firms exist? How do firms contribute to the efficiency of the market economy in ways that ‘networks of independent contractors’ do not? How are the boundaries of the firm best established? According to Coase’s theorem, with no transaction costs, the industry structure is unrelated to efficiency
How does applying econometrics to economics validate economic decisions for an organization? Support your response with an example. Econometrics is the study of economic theory in its relations to mathematics and statistics. The essential premise is that economic theory lends itself to mathematical formulations, which includes random variables. Econometrics helps to estimate the relations that
How can sample data support or inform economic decision making within an organization? Can the sample data have errors or be problematic when making decisions? Provide an example. Sample data helps in supporting or informing economic decision making, by testing for the significance of economic policies and decisions with respect to the population.The use of