Business economics is a field in applied economics which uses economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital and product markets. It is worth quoting him. *Response times vary by subject and question complexity. Role and Responsibilities of Business Economists. In advanced countries, large companies employ Business Economist or Managerial Economist to assist the management. One way is in so far as the social efforts are confined to inducements in the form of suitable fiscal and monetary measures such as taxes, subsidies, concessional rates of interest, these measures can be easily incorporated in the value-maximisation model of the firm. Small and medium size enterprises have various advantages which include but not limited to the following: they provide a source of revenue to the government, they provide employment to citizens, and also they utilize the small resources available in a country. Also, the increasing rate of inflation has had adverse effects on companies. Copyright © TaxGuru. Also merging with other companies is important because Telecoms world plc will be able to share part of the other company benefits like a stable market, large clientele base and huge profits. IvyPanda. They look at changes in macroeconomic indicators, such as national income, population and business cycles, and their impacts on the functioning of a business. Business Economics is concern with economic issues & problems related to business organization, business management, and business strategy. Is it ebbing or showing signs of recession? The company lacks enough capital that it can invest in various telecommunications sectors including provision of internet connectivity services, data bundles, and provision of high edge telecommunications infrastructure systems like fiber optics technology. Find answers to questions asked by student like you. On the other hand, if the business economics analysis is professionally done, the company is likely to prosper and make a lot of profits. "The Role of Business Economics in Business Process." The factors which influence the business over a period may lie within the firm or outside the firm. August 12, 2019. https://ivypanda.com/essays/business-economics/. Business economics is, thus, an applied economics. The research paper will also examine the various strategies that the company can adopt in order to overcome the micro economic challenges. Business Environment helps to study the all factors and forces and beyond the control of individual business enterprises and its management which will help to maintained the business as stable. For example, economies of large-scale production and distribution are such that only one electricity producing and distributing company, only one company providing telephone service can efficiently serve a city. These acts are designed to prevent collusion among firms and creation of monopolies through mergers. A business is essentially involved in the process of decision making as well as forward planning. In order for Telecoms world plc to compete with its major competitors, the company needs to perform a market analysis. Content Guidelines 2. The scope of Business Economics in various areas of operations, are described below. The assumption from the company is that consumers prefer cheap products and services that they can afford. Such collusion among the firms or formation of a cartel leads to higher monopoly price being charged and restriction of output. Telecoms world plc faces a major financial constraint. From the analysis conducted, most consumers preferred other companies like orange, Vodafone and T- mobiles because they are offering high quality products and services. Marketing will create a good brand name for the company’s products and services. Their services are of high quality, and most consumers are able to afford most of their services and products. Such growth cannot be merely achieved through maintaining the status quo, but through embracing continuous improvement in a business. By promoting competition these laws work for social betterment of the people and ensure social responsibility of business. The Role of Business Economics in Business Process, Prime Telecoms Company Termination Approach, An Economic and Business Analysis of Vodafone, Mobile Money Transfer as an alternative product for Vodafone Group Plc, E-Business, Telecom & Technology Industries in Brazil, Review of Journal: China’s Floating Population, Current Macro Economic Situation in the U.S, The company is winning a large number of customers through provision of cheap call rates and cheap services. Provisions of 3G internet connection services. It is the primary duty of Business Economists to make extensive study of the business environment and the external factors affecting the firm’s interest, viz., general prices, national income and output, volume of trade, etc. Business economics clarifies the role business firms play in a society and also suggests ways of improving the benefits which firms provide to the society. (2019, August 12). Benefits of this economic growth have been widely shared. One way to undertake such a market analysis is through the use of data mining technique. Incorporated as a not-for-profit foundation in 1971, and headquartered in Geneva, Switzerland, the Forum is tied to no political, partisan or national interests. Is competition likely to increase or decrease with reference to the materials produced by the company? Business decision is an integral part of management. Burkett, J 2006, Microeconomics: optimization, experiments, and behavior, Oxford University Press, New York. He has a significant role to play in assisting the management of the firm in decision-making and forward planning by using specialized skills and techniques. Share Your PPT File, Market Coordination and Managerial Coordination. The Beskope solutions include the services like call queuing, voice recognition and data capture. Economics is the study of human beings (e.g., consumers, firms) in producing and consuming goods and services in the midst of scarcity of resources. The major small and medium enterprise competitors for telecoms Plc include the following: SIM only choices, business phone systems, business telephone systems, and Nextiva Company. A: The market is in equilibrium at the point where the demand is equal to supply. This will also reduce the operating costs of the business (Pfeifer 2002). What should be the appropriate price and wage policies? Also, marketing will increase the company’s product awareness, and also increase the company’s sources of revenue (Frank 1964). Employers even do not make arrangements for their housing which have resulted in slums in the cities. 4. Carson, R, Hecht, J & Thomas, W 2002, Microeconomic issues today: alternative Approaches, Sharpe, Armonk. They are also involved in various promotions for their customers, hence posing a threat to Telecoms world plc. 2. The assumption of the company is that, consumers prefer quality services as opposed to cheap products and services.
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