Jizzelle Victoria

BSAIS-3
How can an understanding of
managerial economics help
managers in global
environments?
How can an understanding of
managerial economics help
managers in global environments?

•managerial economics helps managers

arrive at a set of operating rules that aid in
the efficient use of scarce human and
capital resources
HOW DOES MANAGERIAL ECONOMICS HELP
MANAGERS IN THE GLOBAL ENVIRONMENT?

• It guides the managers in taking decisions

relating to the firm's customers, competitors,
suppliers as well as relating to the internal
functioning of a firm. It makes use of statistical
and analytical tools to assess economic theories
in solving practical business problems.
IMPORTANCE OF MANAGERIAL ECONOMICS
FOR MANAGERS

•It focuses on the efficient utilization of scarce

resources. It is a discipline that brings together the
concepts of business and economics. It enables
leaders and managers with relevant data—demand
projections, capital management, pricing decisions,
profit management, cost analysis, and production
analysis.
 Why is it important for managers to
understand the forces in the global
environment?

•It focuses on the efficient utilization of scarce resources. It is

a discipline that brings together the concepts of business and
economics. It enables leaders and managers with relevant
data—demand projections, capital management, pricing
decisions, profit management, cost analysis, and production
analysis.
 Why is the subject of managerial economics
relevant to the problem of global warming?

Managers can make greener choices in order to address the problem of

globe warming, for example, they may choose to use energy efficient
machinery, they may choose to re use, reduced and recycled and may
choose to use resources efficiently, resulting in less waste.
 WHY IS IT IMPORTANT FOR MANAGERS TO
UNDERSTAND THE FORCES IN THE GLOBAL
ENVIRONMENT?

•Operating in the global environment is uncertain and

unpredictable because it is complex and changes constantly. If
organizations are to adapt successfully to this changing
environment, their managers must learn to understand the
forces that operate in it and how these forces give rise to
opportunities and threats.
How does global environment affect managers?

•The global environment of such companies is a set of forces

and conditions exterior of the organization's boundaries that
affects the way it operates and shapes its behaviour. These
forces alter over time and therefore present global managers
have to get many opportunities as well as threats.
 Why is it important for managers to understand
the importance of effective decision making in
the workplace?

•Why is it important for managers to understand the

importance of effective decision making in the workplace?Good
decision-making can help managers show their employees that
they value their work and have their best interests in mind.
When a manager takes the time to evaluate, analyze and explain
decisions, they also display thoughtfulness and trustworthiness.
How does global environment affect
business briefly explain?

Raw material availability, supply chain reliability,

labor supply, wages, worker expectations,
government regulations and consumer demand are
all influenced by global factors at work.
What is globalization and why is it important for
understanding business ethics?

Refers to the growing interdependence of countries resulting

from the increasing business on integration of trade , Finance ,
people , and ideas in one global marketplace . International
trade and cross-border investment flows are the main elements
of this integration.
Thank you!
 PRELIM PERMIT: 98663974
MIDTERM PERMIT: 34633262
FINALS PERMIT: 69723962