Understanding Significant External Forces. The management has to identify all the important factors that influence a firm. These factors can broadly be divided into two categories. Managerial Economics plays an important role by assisting management in understanding these factors. a.
It is the process involving the transformation of inputs into outputs that is; turning resources and raw materials into final products ready for consumers. Operations comprises a significant part of any given business, so influences that affect this area need to be addressed and monitored as changes to operations can be crucial to the business as a whole, and to achieving a business's ultimate goal: profit maximisation. There are many external influences that act on operations these include: globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation and environmental stability. The most significant of these being globalisation and cost based competition. Operations strategies are affected and or needed for managing these influences.
“Economic data and the signals they contain are central to business conditions analysis.” Economists spend much of their time gathering, interpreting, and manipulating macroeconomic data. This is important because the data they obtain provides signals which are used to predict what will happen in the trade over a set period of time. Signals are divided into two categories that economists focus on, and they are direct and indirect signals. There is a difference between direct and indirect signals. Direct signals are signals that are measurable in terms of validity and reliability.
Several approaches have been developed to assist organizations in meeting these challenges- including just-in-time (JIT) and the theory of constraints (TOC).” (Garrison and Noreen, 2000, p.33) “In managerial accounting, the term cost is used in many different ways. The reason is that there are many types of costs, and these costs are classified differently according to the immediate needs of management.” (Garrison and Noreen, 2000, p.44) This paper will discuss the implications of GAAP in an international company, the importance of JIT and TOC in decision making and will explain the concept of cost classifications. Discussion The Implications of GAAP Generally Accepted Accounting Principles (GAAP) is a widely accepted set of rules, conventions, standards, and procedures for recording, summarizing and reporting financial information, as established by the Financial Accounting Standards Board (FASB), an independent self-regulatory organization. In order to understand the implications of
The case narrative describes a business scenario and a problematic performance measurement system. The case requirements ask you to apply performance measurement concepts to interpret production results, evaluate the company’s current performance measurement system, discuss the applicability of the balance scorecard framework for improving the current performance measurement system, construct a balanced scorecard for the company, and then effectively communicate the results of your analysis, evaluation, and recommendations in the form of a professional written memo. 1. Analyze standard cost variance results and deduce likely causes. 2.
| CHARASTERISTIC OF BUSINESS LEADERSHip STRAYER UNIVERSITY COBB CAMPUS MANAGEMENT CONCEPTS (2) AUGUST 19, 2012 JAMES ANDERSON I. Introduction II. Describe the business leaders who primary business, highlighting how they got started. III. Analyze leadership style how he or she adapted to cultural differences.
And as for why a manager is needed? Simply a manager is needed to control and push the business, thus achieving the basic purposes of the organisation while maintaining financial stability. The role of a manager can be defined in two ways, firstly by the particular tasks that the manager performs out of necessity and secondly by the skills and characteristics that the manager utilises when carrying out these tasks. The list of main activities performed by a manager is a well discussed topic. According to Fayol (cited in Management & organisational behaviour, 2010), the main activities are planning, organising, command, co-ordination, and control.
The economic system is a combination of regulations put into practiced by the firm and consumers in a country. The classification of the system also can be identified by the use of economic resources to overcome the economic problems. However, how to solve the fundamental problems of the economy is depends on the economic system that have been practiced. Economic systems exist to provide goods that can satisfy the needs of the individual are not limited to the use of scarce resources. Economics system functions is to determine who among the decision maker will make effective decision for the economy.
There are four competing Business, Government, and Society (BGS) models, the Market Capitalism model, the Dominance model, the Countervailing Forces model and the Stakeholder model. The purpose of these models are simplified descriptions of the Business, Government and Society relationship. According to the Market Capitalism Model business operates within a market environment and responds primarily to the powerful economic forces. There are many important assumptions regarding this model. Some of the key assumptions include slight government interference in the economy, consumers are able to make decisions because they are informed about the products they are looking to purchase and the price of the products and banks and laws exist for the sole purpose of easing commerce.
Enterprise and Its Business Environment Essay Select one of the PEST factors and discuss the effect and influence that this factor has on businesses. PEST analysis is applied in many large organisations as a method of predicting change in political, economic, social and technological factors. It is a component of the external analysis when a business decides to conduct market research for example. It is a beneficial strategic tool regarding the status of a business in comparison to competitors and future business direction. In this essay I will present various effects and influences society has on businesses in order to show you specifically how significant social class, lifestyles and other social aspects can be relating to businesses.