With their only being one objective this week I can say that I felt fairly comfortable with the objective, apply economic concepts in making business decisions. “Almost everyone in society engages in economic decision making at some point, from the billionaire investing in real estate, to the small business owner signing a contract with a supplier, to the teenager buying a video game or applying for a Job; and these basic factors almost always come into play’ (Chron. com, 2013).
As the quote says conomic decisions are a part of everyday life. For business owners they need to know what type of market they are operating in how elastic their good is, and what is going to be the best method to cutting costs. These are all important economic aspects that we as professionals need to take into consideration when making business decisions. Understanding and knowing what your business is going through, what the competitors are going through and what type of market you are competing in will help business’s make smarter decisions to increase revenue and keeps their business moving forward.
Paul James Martinez’s Discussion: This week is about applying Economic concepts to business decisions every business needs to pay attention to the economic climate and the way consumers are spending or not spending depending on the service or goods a business is providing it needs to make sound economic choices especially with its’ inventory and surplus. Nothing says poor planning than not having the pulse of the economy and losing money. Investments for a business is an important decision but without smart economic concepts that investment may cost your business a lot of money and not to mention consumers.
Many concepts to consider would be for example production, opportunity costs, substitution, labor costs, technology, and health benefits. I truly did not have any struggles with the concepts of economics and applying them to business decisions. Much of what I learned was how important economics is and how it absolutely affects the outcome of any business and organization I believe that all businesses and organizations should be versed in the basics of economics.
I have really learned so much in this class the information was abundant class discussions stimulating and I have come away with a knowledge base that is powerful. Alex Halim’ Discussion In this week the objective is applying economic concepts in making business decision. Economic conditions are the integral part of economic analyses and studies. They give a tair indication ot the state ot an economy. They are also important in context of economic forecasts. Economists and other entities who make economic forecast study economic conditions of a country thoroughly before expressing their opinion.
Businesses make economic decision everyday. Entrepreneurs have to make decisions on how to run their business so as to make a profit. They have to make choices on matters such as what they will produce, how they will produce it and how to finance the production. Economic theory assumes a rational approach to decision making that may not always be borne out in the real world. Steven Cole’s Discussion This weeks learning objectives steered me towards some very interesting reading outside of class.
Usually my concentration of discussion questions and responses are based on my experiences in construction. This week I ended up at web page on decision making management systems. It complemented what we covered and went nto four major decision making concepts that a company needs to have a foundation for success. The web page is sponsored by IBM and had a lot of practical and applicable material for business decision making concepts. They state there are four types of business decisions companies’ face routinely in an organization. . Strategic decisions: These are high value decisions that determine the overall direction the company follow in day to day business operations (Wilson, 2011). 2. Tactical decisions: These are decisions made on a daily basis by middle management. This decisions will not affect the overall direction of the company. These are usually managers in the field, assembly line, or any other middle management decisions (Wilson, 2011). 3. Operational decisions: These are decisions usually made usually involving single customer transactions.
The customer service employee that the cash register is a good example of this (Wilson, 2011). 4. Micro decisions: Micro decisions are preference based decisions that are decisions made on a customer or business partner that is tailored towards that client or customer. It is not a decision that is used for all customers Just that particular one (Wilson, 2011). A good decision making plan is a must for success. I plan to write my dissertation in my PhD on a new concept of decision making that I see daily in the construction field. ” Reactionary Management Skills. I found the final to be a challenge but the 2 hours I spent checking my answers was also a learning tool for re-enforcing what we covered in the prior 5 weeks. The Daily questions were both stimulating throughout the weeks and I loved the format of more answer less lengthy. Zeeshan Wahid’s Discussion The sixth week of economics provided a great insight as to how management decisions have to be carefully analyzed and take other factors into consideration such as the state of the economy. It is also important for a business to set itself apart among its competitors to ensure an organization can gain more perspective in generating revenue.
The topics I felt comfortable with relate to management decisions that are made every day and how they are a critical aspect of ensuring all core functions follow through smoothly. Business management decisions are a necessity to an organization to ensure the business has successful sales and is able to obtain a good return on i ts investments, and generate good amount ot revenue. Additionally, it is also important for a business to monitor its competitors closely to ensure they have ompetitive prices and can meet the demands of its consumers by providing all types of products or services.
The economy is starting to show some good signs of recovery, which means consumers will be able to afford branded products. Business should utilize specific tools such as lean manufacturing or regular continuous improvement initiatives to develop an enabler which will allow the company to save money on fixed and variable costs. There were no topics I struggled with during week six. One of the ways the weekly topics relate to my field of application is always trying to inimize fixed and variable costs.
In my current workplace, we hold regular continuous improvement events with my staff to develop a process where we can reduce costs in some avenues of our business. This allows our company to save any amount of money it can and invest in other necessities the business may need.