BSAIS-3

How can an
understanding of
managerial economics
help managers in global
environments?
 HOW DOES MANAGERIAL
ECONOMICS HELP MANAGERS IN
THE GLOBAL ENVIRONMENT?

It guides the managers in taking decisions

relating to the firm's customers, competitors,
suppliers as well as relating to the internal
functioning of a firm. It makes use of
statistical and analytical tools to assess
economic theories in solving practical
business problems.
 IMPORTANCE OF MANAGERIAL
ECONOMICS FOR MANAGERS

•It focuses on the efficient utilization of scarce

resources. It is a discipline that brings together
the concepts of business and economics. It
enables leaders and managers with relevant data
—demand projections, capital management,
pricing decisions, profit management, cost
analysis, and production analysis
 Why is it important for managers to
understand the forces in the global
environment?

•It focuses on the efficient utilization of scarce resources.

It is a discipline that brings together the concepts of
business and economics. It enables leaders and managers
with relevant data—demand projections, capital
management, pricing decisions, profit management, cost
analysis, and production analysis.
 Why is the subject of managerial
economics relevant to the problem of
global warming?

Managers can make greener choices in order to address the problem of

globe warming, for example, they may choose to use energy efficient
machinery, they may choose to re use, reduced and recycled and may
choose to use resources efficiently, resulting in less waste.
 WHY IS IT IMPORTANT FOR MANAGERS
TO UNDERSTAND THE FORCES IN THE
GLOBAL ENVIRONMENT?

•Operating in the global environment is uncertain and

unpredictable because it is complex and changes
constantly. If organizations are to adapt successfully to
this changing environment, their managers must learn to
understand the forces that operate in it and how these
forces give rise to opportunities and threats.
How does global environment affect managers?

•The global environment of such companies is a set of

forces and conditions exterior of the organization's
boundaries that affects the way it operates and shapes its
behaviour. These forces alter over time and therefore
present global managers have to get many opportunities
as well as threats.
 Why is it important for managers to
understand the importance of effective
decision making in the workplace?

•Why is it important for managers to understand the

importance of effective decision making in the workplace?
Good decision-making can help managers show their
employees that they value their work and have their best
interests in mind. When a manager takes the time to
evaluate, analyze and explain decisions, they also display
thoughtfulness and trustworthiness
 How does global environment
affect business briefly explain?

Raw material availability, supply chain reliability,

labor supply, wages, worker expectations,
government regulations and consumer demand
are all influenced by global factors at work.
 What is globalization and why is it
important for understanding business
ethics?

Refers to the growing interdependence of countries resulting

from the increasing business on integration of trade ,
Finance , people , and ideas in one global marketplace .
International trade and cross-border investment flows are
the main elements of this integration.
PRELIM PERMIT: 98663974
MIDTERM PERMIT : 34633262