Article Review: "A Strategic Assessment of Managerial Economics in Perspective" by

Frederick Anning
Author, Year, Place:
 Author: Frederick Anning
 Year: Not provided in the text
 Place: Siberian Federal University, Krasnoyarsk, Russia
Abstract: The abstract introduces the topic of managerial economics and its evolving role in
contemporary firms. It mentions the shift from a neo-classical approach to a marketing-
oriented approach, emphasizing customer satisfaction. The role of contemporary production
techniques (CPTs) is highlighted, with a focus on management's discretion in their adoption
and application.
Keywords: Management, Planning, Firms, Capital, Labour, Economics
Introduction: The introduction sets the stage for discussing managerial economics and its
relevance in modern business contexts. It touches upon the shift from a neo-classical
approach to a marketing-oriented one and introduces the concept of CPTs. The importance of
cost efficiency and productivity is emphasized.
Objective of the Title: The paper aims to assess the strategic role of managerial economics
in the context of modern firms and how the adoption of contemporary production techniques
(CPTs) impacts cost efficiency and competitiveness.
Cost and Production Functions: This section discusses the neo-classical view of short-term
production functions and cost functions, emphasizing the relationship between total output or
total cost and factor inputs. It introduces the concept of cost curves and their significance in
decision making.
Methodology: The methodology section is not explicitly labeled but can be inferred. It
revolves around the premise of productivity increases leading to cost efficiencies. It discusses
the role of average productivity, average variable costs, and marginal costs. The introduction
of CPTs is mentioned as a means to control costs during production.
Findings: The article highlights the following findings:
1. Flexibility Through CPTs: The adoption of CPTs provides firms with flexibility in
terms of production. It allows for rapid shifts in response to changing demand without
the need for extensive inventory. This flexibility can reduce the cost penalty of
product variety.
2. Total Quality Management (TQM): TQM, when implemented in a Just-In-Time
(JIT) environment, focuses on quality control, prevention, and process improvement.
It shifts the responsibility for quality to both the workforce and the parts, emphasizing
prevention and process control.
3. Business Process Re-engineering (BPR): BPR involves using technology to
reorganize processes rather than functional departments. It aims to remove
inefficiencies, improve processes, and enhance competitiveness.
Discussion: The discussion delves into the success and challenges of implementing CPTs
like JIT, TQM, and BPR. It mentions the potential pitfalls, such as neglecting process
restructuring in favor of downsizing. The article also raises concerns about the negative
impacts of downsizing on morale and long-term competitiveness.
Conclusion: The conclusion summarizes the benefits of CPTs for firms in terms of long-term
survival and competitiveness. It emphasizes the potential for low-cost production of high-
variety, low-volume products and the importance of management strategies in product
delivery.
Strength of the Paper:
 The paper provides a comprehensive overview of the role of managerial economics in
contemporary firms.
 It explores the benefits and challenges of implementing CPTs, offering practical
insights for businesses.
 The discussion on the potential drawbacks of downsizing adds depth to the analysis.
Weakness of the Paper:
 It would benefit from more empirical evidence or case studies to support its
arguments.
 While it discusses the benefits of CPTs, it could provide more detailed examples or
real-world applications.
In conclusion, "A Strategic Assessment of Managerial Economics in Perspective" by
Frederick Anning offers valuable insights into the evolving role of managerial economics and
the impact of contemporary production techniques on cost efficiency and competitiveness.
However, additional empirical evidence and practical examples would enhance the paper's
comprehensiveness.