Economics for Business Assignment Example | Topics and Well Written Essays - 2000 words

Economics for Business - Assignment ExampleThis makes micro- stintingal environment more popular among industries which involves influencing of choice through interaction. Thus, micro- economic approach is usually adopted in educational institutions, hospitals and antithetical charitable organizations. External market environment is much dependent on drill of resources. A supportive and adaptive micro- economic environment results in utility maximization as farthest as consumers are concerned, but most importantly it contributes in profit maximization of firms. By adopting micro- economic approach, business organizations could effectively manage their resource allocation among alternative possibilities. 1Since social trends and customs affect choices of people, organizations lead using their resources in a much practical terms. In present times, market mechanisms are incorporate with state intervention. 1.2 Business documentals are important for numerous reasons. Profit making Earning profit is the elementary objective of any business. Profit is earned through a series of business activities. Profit making tummy further be categorized as maximum profit and sufficient profit. While the originator concept supports generation of artificial deficiency, excessive price hikes, adulteration, etc, the later one focuses more on sustenance, prestige and recognition, growth and growth of business. In present times, most business organizations adopt the path of sustainable development merged with profit maximization objectives. Creation of customers Irrespective of type or expansion, every business must(prenominal) expand their customer base. Creation of customer implies generation of emf customers. Amount of such creation is right off proportional to profit making of organization. Thus, customer base is a major determinant in anatomy of organizational profit- maximizing policies. Advertisements, pricing strategy, and superior quality of goods and run are po pular approaches for generation of potential customer base. Ensuring customer satisfaction results in customer retention. foot Innovation is the latest mantra in advanced business scenario. Changing trends and mindsets have made people more cautious and aware about the goods and services they are purchasing. Thus, marked research, use of newer technologies, customized facilities, and varieties of products have become indispensible for modern customers. Presently, organizations are finding out ship canal to make use of old products in production of new ones. This contributes in satisfaction quotient of customers belonging to different age groups. Thus, from economic perspective, innovation is as important as marketing, promotion, finance and other business activities. Innovation definitely helps in expansion of business2 Scientific management is the cornerstone of business behavior of modern firms. all(prenominal) organization maintains certain codes or behavioral principles. Busi ness policy, policy implementation as well as overall behavior of a business depends on numerous aspects. Some of these are- business objective, hierarchy, span of control, proletariat division and specialization, managerial authority and responsibility, coherence and connection between