Submitted by: Submitted by

Views: 300

Words: 1689

Pages: 7

Category: Science and Technology

Date Submitted: 09/26/2011 02:51 AM

Report This Essay

Managerial Economics

In nowadays world of business and economics, decisions on products, appointments of new CEOs, price, cost and etc… are taking by the management and reported to media in daily basis, the right decisions have to be taken in the right time by the right person, the managers treating the market as game and treating themselves as a players where their aim is not to lose rather than to win. These decisions are actually the actions that taking by one player and lead to reaction by another, the competitor understanding these actions as a signals that need to be observed, analyzed and acting to them accordingly, different managers have different types that can be distilled from their behavior and according to their types they are building the strategy for the organizations they are managing by understanding the process of filtering these signals in the market and by considering Tn=3 framework that focused on Type (of their opponent), Time and Technology. This framework is drawn upon the three management models, and each model has its own characteristic that can be identified as Baumol on price, Marris on dividends and Cost Leadership (CL) on costs.

In order to understand the management behavior and how these managers are taking their strategic decisions, first we have to understand the different paradigms of the firms and the theories behind these paradigms; the traditional Neo-classical paradigm/theory is about making a maximum profit at minimum cost, this paradigm can be appropriate for a small firm owned by one person or family producing a single product but not for a complex organizations where different shareholders are involved and different goods are produced, therefore this theory has been evolved to what we call evolution of the firm which involved different theories such as principal-agent theory, Transactions cost theory, evolutionary theory and of course neo-classical theory which has been developed by scholars whose assumed different...

More like this