Role and Responsibilities of Business Economists
The role of commercial enterprise economist (Business Economists) turns into an increasing number of essential in view of the different targets of the firm. He has an extensive function to play in supporting the management of the firm in decision-making and forward planning by using specialized abilities and techniques. In advanced countries, huge agencies employ commercial enterprise economist or managerial economist to assist the control.
The factors which have an effect on the business over a period may also lie in the company or out of doors the company. Usually, these factors are divided into two categories, viz.
- External elements, and
- Internal factors.
External factors are past the control of the company and those elements represent commercial enterprise environment. The inner elements are in the management of the company’s management and those are called business operations.
For example, a firm is free to take selection on subjects of funding, employment, manufacturing of commodities, their pricing, etc. But a majority of these decisions are taken in the framework of a particular commercial enterprise environment, the authorities’ financial policy and the volume of competition faced by means of the company, and many others.
Commercial enterprise economists should observe the environment
It is the primary duty of enterprise economists to make extensive have a look at of the commercial enterprise environment and the outside factors affecting the company’s hobby, viz., well-known fees, national profits and output, the volume of change, and many others. Those factors should be thoroughly analyzed and answers to the subsequent questions should be discovered out:
- What’s the trend in the financial system? Is it ebbing or showing signs and symptoms of recession?
- What will be the character of the cash marketplace?
- What is going to be the price tendencies of uncooked substances and completed products in popular?
Four. Is competition likely to growth or decrease with regards to the substances produced by way of the employer?
- What’s going to be the regulations of the government?
Answers to these questions will throw more light on the possible business nature and the business economist could make powerful contribution thru clinical selection-making. Commercial enterprise economists need to make decisions concerning enterprise operations.
The business economist can help the control in making choices regarding the internal enterprise operations via reading and analyzing the subsequent:
- What needs to be the manufacturing schedule and inventory rules for the coming yr?
- What needs to be the correct price and salary rules?
Three. How tons cash could be available inside the coming months and the way must or not it’s invested?
Four. What need to be an inexpensive sales and income finances for the approaching 12 months?
Besides making the above research, the commercial enterprise economist should perform precise capabilities like –
Analysis of competing companies,
Funding analysis and environmental forecasting, etc.
It’s far the responsibility of the business economist to provide the necessary economic intelligence, except statistical information to the control for effecting making plans. The commercial enterprise economist has to keep in thoughts the main targets of the company and take decisions on the premise of those goals.