Role of Business Economists

The external influences on the firm (the business environment) e.g. competition it faces, the prices its suppliers charge, the level of interest rate.Internal decisions of the firms. How to decide on prices, marketing investment.The role of business economists is description, analysis and recommendations.4要素 to business environment: political (govt actions),economic(the cost of raw material), social/cultural and technological.一个公司的BE is largely beyond its control:the state of national economy and for international trading companies of global economy.Economic environment 分成2 levels:宏观和微观Market environment: 想要取得成功, 需要有正确的产品和策略,这意味着要理解什么创造了市场,顾客的需求对产品价格的改变,提供什么样的服务。低价是成功的关键但质量也需要保证。Sustainability and environmental issues也很重要。 Sustainability report address human rights and working condition.特别是低价的工厂如何去pay 和工作条件。Biotechnology:The division of the factors affecting a firm into political, economic,social and technological is commonly known as a PEST analysis, add a further 3 factors to create STEEPLE analysis, environmental (ecological) factors, legal factors( 产品安全标准)ethical factors。法律和政府政策可以反应社会态度,科技因素可以决定经济, 像成本,生产力Deindustrialization: the decline in the contribution to production of the manufacturing sector of the economyClassifying firms into industries(可以帮助我们分析经济趋势)An industry refers to a group of firms that produce a particular category of product. Industries can be grouped together into broad industrial sectors.

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