Role & Responsibilities of an

Economist
 Role of a Economist

 Decision Making.
 Forward Planning.
 Two Key Factors that influence these Roles:
 External - beyond the control of the firm.
 Internal - within the control of the firm’s management .
 Decisions regarding Business
Operations
• The production schedule and inventory policies.
• The appropriate price and wage policies.
• Reasonable sales and profit budget for the coming year.
• How much cash will be available in the coming months and how
should it be invested.
 Functions of Economist

 Sales forecasting
 Market research
 Analysis of competing firms
 Pricing problems
 Production programmes
 Investment analysis and environmental forecasting, etc.
 Sales forecasting

 Sales forecasting is the process of estimating future

sales.
 Sales forecasting allows companies to:

o Predict achievable sales revenue.

o Efficiently allocate resources.
o Plan for future growth.
 Market Research
Market research consists of systematically gathering data about people
or companies and then analysing it to better understand what that group
of people needs.

 Analysis of competing firms

Competitor analysis in marketing and strategic management is an
assessment of the strengths and weaknesses of current and
potential competitors
 Pricing and Production Problems

 Economist takes decision on what goods to be produced, quantity

to be produced, prices to particular products depending on the
market conditions.
 The Economist has to keep in mind the main objectives of the
firm and take decisions on the basis of these objectives.
 Responsibilities of Economist

 To make a reasonable profit on capital employed.

 He must make successful forecasts by making in depth study of
the internal and external factors.
 He must inform the management of all the economic trends.
 He must establish and maintain contacts with individuals and data
sources.
 He must earn full status in the business and only then he can be
helpful to the management in good and successful decision-
making.
Thank you