Marist Brothers

NOTRE DAME OF DADIANGAS UNIVERSITY

Marist Ave. General Santos City

Journal in MANAGERIAL SCIENCE

Submitted by: Doctora, Kianna Angel BSA 1

Submitted to:

Maam Charmaine Klaire Alonzo

 Jan 26, 2022

Managerial decision-making is a
process aimed at resolving identified
problems and enabling effective and
efficient performance of business
It is a cognitive process of
activities. It is a cognitive process of making choice between
making choice between more options,
based on available information, more options, based on
knowledge, experience and beliefs of
decision-makers.
available information,
knowledge, experience and
beliefs of decision-makers.

Decision making is choosing

among alternative courses of
action, including inaction.
There are different types of
decisions, ranging from
automatic, programmed Structured decision-
decisions to more intensive making processes
nonprogrammed decisions. include rational
decision making,
bounded rationality,
intuitive, and creative
decision making.

Each of these can be

useful, depending on
the circumstances
and the problem that
needs to be solved.
 Jan 26, 2022

First thing that we had

discussed is about the Managerial economics is a stream of
Managerial Economics management studies that emphasizes
primarily solving business problems and
decision-making by applying the theories
and principles of microeconomics and
macroeconomics.

It is a specialized stream
dealing with an
organization’s internal
issues by using various All the business
economic theories. assumptions,
forecasting, and
investments are
derived from this single
concept. This is
managerial economics
meaning in a nutshell.
Economics is
an
indispensable
part of any
business.
 Jan 26, 2022
Jan 28, 2022

Company and then the labour

Theory of derived Demand with the was employed by the
help of an example: a Consumer entrepreneur using the
Demands a piece of clothing, let’s say Company’s Capital. The Demand
a shirt, which is a finished product for all these resources (factors of
that came into existence after production) was indirectly
undergoing various processes. First, created when the Consumer
the land for building the plant was posed a Demand for the shirt.
acquired by the manufacturing. This is called the Theory of
derived Demand.

The application of Demand

The Theory of Demand is
useful in determining the
force of various
determinants or factors
that affect the quantity
Demanded.
Theory for estimating the
ups and downs in the
equilibrium prices of
various commodities is
important for investors and
entrepreneurs.
Demand is the quantity of a good
or service the consumer is willing
to purchase at specific prices
during a time period. The demand
for a good at a certain price
generally reflects the consumer’s
willingness to pay and expectation
for consuming that product. The
goods indeed range in price, from
necessities to luxuries.

For example, regarding necessities,
people need food, healthcare, clothing,
entertainment, shelter, and water
across all welfares. The price of the
goods tends to be fairly affordable for
most individuals. Whereas, designer
bags, for example, tend to be priced at
a premium, as such goods are
considered wants and are not required
to continue to live a healthy life.
This is also a principle
that emphasizes the
relationship between
consumer demand and the
price for goods and
services within a market.
Jan 28, 2022
Demand theory describes the way that
changes in the quantity of a good or
service demanded by consumers affects
its price in the market, The theory
states that the higher the price of a
product is, all else equal, the less of it
will be demanded, inferring a
downward sloping demand curve.
The better you understand
the law of demand, the
better you will understand
why you pay different
prices for different goods.
February 2, 2022

Supply is the quantity which a

producer is willing and able to
supply or sell at different levels
of prices in a given period of
time.

Supply is the amount of

the good that is being
sold onto the market by
producers. At higher
prices, it is more Demand is the
profitable for firms to
quantity of the good
increase supply, so
supply curve slopes that consumers wish
upward. to buy at different
prices. At higher
prices, less will be
demanded

The supply function

describes the describes the effect that
total amount of a changes in one variable
specific good or have on another. It shows
service that is the relationship between
available to price and quantity
consumers supplied at a given point
in time.
 February 7, 2022

It allows us to analyze supply and demand with greater

precision. Elasticity is a measure of how much buyers and
sellers respond to changes in market conditions. Price
elasticity of demand is a measure of how much the quantity
demanded of a good respond to a change in the price of that
good. Price elasticity of demand is the percentage change in
quantity demanded given a
percent change in the price.

Demand tends to be more elastic:

• the larger the number of close substitutes.
• if the good is a luxury.
• the more narrowly defined the market.
• the longer the time period.
Price elasticity of demand is calculated as the percentage
change in quantity demanded divided by the percentage
change in price. If a demand curve is elastic, total revenue
falls when the price rises. If it is inelastic, total revenue rises
as the price. The tools of supply and demand can be applied in
many different types of markets.
 February 9, 2022

Consumer choice refers to the decisions that consumers make with regard to
products and services. When we study consumer choice behavior, we
examine how consumers decide which products to purchase or consume
over time. The purpose in understanding the consumer choice theory is a
way of analyzing how consumers may achieve equilibrium between
preferences and expenditures by maximizing utility or satisfaction in terms
of their consumer budget limits. Consumer choice theory considers how the
consumer will make their consumption decisions based on their behavior.
So, considering Coca Cola and Pepsi, a consumer could either say that they
prefer Coca Cola to Pepsi, Pepsi to Coca Cola, or are indifferent between
the two.
Consumer Choice Theory is important because it study of how people decide
to spend their money based on their individual preferences and budget
constraints. Building a better understanding of individuals' tastes and
incomes is important because these factors impact the shape of the overall
economy.
Let us consider an agent who makes choices under certainty. Choices in a
certain environment can be analyzed through two instruments:
- set of choices X,
- weak preference relation R representing agent's preferences over couples
of
elements of X.
 February 14, 2022

Demand forecasting, as the name already tells, is the process for

obtaining estimates of a future demand of products and services.
This is done with existing data that’s been collected and stored.
Forecasts can be generated through mathematical models, which
use historical data; by qualitative methods, such as management
experience or expert opinion; or even a combination of both. Some
of the questions we seek to answer when making such predictions
are “when”, “where”, and “how much”. It is important to note
that predictions are not targets, but rather estimates of what will
happen. Forecasting results aid businesses in planning their
decision making. Therefore, a good demand forecasting process
needs to produce good estimates.
Demand Forecasting is an important activity that influences
companies from different segments, such as: retail, consumer
goods, pharmaceutical industry, automotive electronics, heavy
machinery among others.
Forecasting future demands is a challenge that companies have to
face in order to be able to make decisions that allow them to
compete by generating better supply chain results. Demand
forecasting is an essential activity for business planning, as it
results in several benefits, such as: reduced waste, better
allocation of resources, increased sales and revenue. This way, it
helps organizations to be in the right place, at the right time, with
the right product.