BUSI 620-WEEK 7 - Managerial Economics ​ How can an Understanding of Managerial Economics help Managers in Global Business Environment?

The primary reason for writing this research paper is to identify and discuss the importance of managerial economics in global business environments. This paper focuses on how managers of institutions can use managerial economics knowledge to effectively and efficiently run those organizations successfully. In order to complete the research, data was collected from various organizations, including banks, freight companies, and food manufacturing companies. This was done through administering questionnaires which were promptly responded to by different departmental managers of those institutions. Similarly, secondary methods of data collection were employed, involving the review of journals and business reports. These provided an insight into the relevance of managerial economics to the dynamic face of the global business environment. After data analysis, arguments have been made that managerial economics plays a vital role in combining economic theories with practical business problems, thus helping to formulate decisions. Further, a manager who is well equipped with principles of managerial economics has analytical skills to make projections in the world of the uncertain business environment. The forecasts are on economic quantities like profitability, capital, operation cost, and growing demand base. As such, the work concludes by acknowledging the critical role of managerial economics in recent times as institutions seek leadership that is visionary and remains proactive in the tide of business uncertainty, thus laying emphasis on managers who can make sound decisions based on economic theories and principles to tackle practical organizational problems. Introduction Managerial economics relates various economic theories to organizational practices and seeks to bridge the gap between logic problems that intrigue economic theorists and policy problems facing practical managers (Waykole, 2013). Through managerial economics, managers of organizations acquire analytical skills critical in logical structuring of their organizations' issues and coming up with viable solutions to these economic problems. Similarly, an adequate understanding of managerial economics plays a critical role in managers' decision-making process after careful analysis of the prevailing conditions, thus helping in the efficient and effective operation of business regarding resource allocation. ​ Why copy this essay when you can simply order quality, plagiarism-free paper, written from scratch by one of our experienced writers? ​ Click to Get a Quote ​ In a recent research study conducted by Mamanshetty (2018), the author points out that managerial economics is an essential part of scientific research. It directs scarce resources to manage cost-effectively. In essence, organizations' unlimited needs are addressed using scarce resources; thus, deciding to allocate resources for the competing ends requires analytical skills. This makes managerial economics relevant to decision-making in global business environments. Therefore, this research paper seeks to examine managerial economics's role in the dynamic face of the worldwide business environment. As the business environment faces new challenges brought about by bottle-neck competitions, managers must remain proactive in their decision-making approach. This is only possible when they have prerequisite knowledge of managerial economics and analytical skills to make informed decisions for the company's future. Background of the Study One of the primary objectives of business organizations and enterprises is to maximize revenues. For the long-term realization of this objective, the business must make decisions from time to time to realign its course of action to the intended outcomes. Several alternatives are presented, from which the management executive selects the best method of actions (practices) to be implemented going forward. To make sound decisions, the management executive should be equipped with individuals who have a vast body of knowledge and experience in economic management and evaluate the primary variables playing out in the global business environment, as illustrated by Waykole (2013). Business enterprises' sustainability requires that there should be an integration of fundamental economic theories that provide a framework within which such decisions are made for every business decision made. Achieving this requires that managers are concisely aware of economic theories, thus applying them in management practices to solve real business problems. Further, the rapidly changing landscape of the global business environment calls for managers to embrace forecasting skills by using various models to enable their organizations to remain firm and uninterrupted by the emergence of new economic challenges (Rao, 2017). In recent times, there has