Role of Business Economists, objectives

Role of Business Economists, objectives

1. Objectives of Business Economics It aims at integration of economic theory with business practice. It aims at practical application of economic concepts and principles to solve business me

2. Objectives of Business Economics It aims at avoiding abstract discussions. It employs modern instruments and tools to solve business problems.

3. Objectives of Business Economics It aims at optimum use of scarce resources of a firm. It helps to achieve other objectives of a firm like attaining industry leadership, expansionness problem market share etc. It aims at making all round development of a firm.

4. Role of Business Economist

5. Consultant: Business economist plays mainly the role of a consultant. He gives advice and guidance on various issues pertaining to business.

6. Analyst: . Business economist 's position is that of an analyst. He is mainly concerned with classifying decision problems, organizing and evaluating available data and ultimately identifying alternative courses of action

7. Model builder: The role that a business economist plays in modern business is building a model. He builds a comprehensive model of each decision problem setting its limitations or constraints. Business economist possesses this skill and has knowledge of using different tools and techniques Of model building. such as the profit-maximisation model…..continued….

8. Economic Intelligence: A business economist plays a far more useful role in the sphere of economic intelligence. For guiding the destiny of a firm, he requires first-hand information and relevant data. He conducts field studies, market surveys, industrial research relevant data for model-building and guidance. He makes economic analysis of competing firms and studies their strategies. All this is a part of Economic intelligence.

9. Environmental Forecaster: . A business economist is also an environmental forecaster. He makes forecast including country and industry forecasts. In addition, he also makes commodity forecasts.

10. Corporate planning. He helps in formulating company plans setting their objectives and constraints. He provides ways and means for achieving desired company output

11. Risk Analyst: A business economist has a role to play by analysing the risk that a firm faces. He can predict future business risks and guide the company by Suggesting alternative courses of action. He helps the managers in reducing or minimising future business risks.

12. Profit and Production Planning: The main objective of any business firm is to make maximum profits, A business economist is required to analyse the factors that are likely to determine profits of the company. His knowledge of demand and cost analysis helps him to guide the management in devising profit plan.

13. Adviser: A business economist also plays the role of an adviser. He studies, analyses and Interprets the impact of government policy, laws and regulation relating to business. He has to suggest appropriate policy that a company should adopt. He is also capable of anticipating future policies of the government and accordingly formulates company strategy. .

14. Budgeting: Budgeting is another area where a business economist plays a prominent role. Most of the firms have to make huge investment in plant and machinery and other capital assets. This requires appropriate planning as it has long run implications. A business economist is capable of formulating capital budget for the company. He has the necessary qualification, skill and expertise for the formulation of capital budgets. A company seeks his guidance in this area too.

15. National and International Studies: He has to conduct national, international inter-Industry studies and product line research to assist management to take suitable decisions.

16. To Synthesize Various Polices It is the job of business economist to to coordinate the activities of different departments of the firm. Hence , he has to work in harmony with other policy makers of the firm.

17. To have Complete Information about the Environmental Factors In order to make the business more viable and profitable the business economist should have detailed knowledge and information about business unit and its environment. Broadly speaking the environmental factors can be classified into two categories: (a) Business environment (external factors), and (b) business operations (internal factors).