Role of Business Economists, objectives

1. Objectives of Business Economics
•It aims at integration of economic theory
with business practice.
•It aims at practical application of economic
concepts and principles to solve business
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2. Objectives of Business Economics
•It aims at avoiding abstract discussions.
• It employs modern instruments and tools
to solve business problems.

3. Objectives of Business Economics
• It aims at optimum use of scarce resources of
a firm.
• It helps to achieve other objectives of a firm
like attaining industry leadership,
expansionness problem market share etc.
• It aims at making all round development of a
firm.

5. Consultant:
• Business economist plays mainly the role
of a consultant. He gives advice and
guidance on various issues pertaining to
business.

6. Analyst:
• .
Business economist 's position is that of an analyst.
He is mainly concerned with classifying decision
problems, organizing and evaluating available data
and ultimately identifying alternative courses of
action

7. Model builder:
•The role that a business economist plays in
modern business is building a model. He builds
comprehensive model of each decision problem
setting its limitations or constraints. Business
economist possesses this skill and has
knowledge of using different tools and
techniquesOf model building.
• such as the profit-maximisation
model…..continued….

9. Economic Intelligence:
• A business economist plays a far more useful role
in the sphere of economic intelligence. For
guiding the destiny of a firm, he requires first-
hand information and relevant data. He conducts
field studies, market surveys, industrial research
relevant data for model-building and guidance.
He makes economic analysis of competing firms
and studies their strategies. All this is a part of
Economic intelligence.

10. Environmental Forecaster:
.
• A business economist is also an environmental
forecaster. He makes forecast including country
and industry forecasts. In addition, he also makes
commodity forecasts.

11. Corporate planning.
• He helps in formulating company plans setting
their objectives and constraints. He provides
ways and means for achieving desired company
output

12. Risk Analyst:
• A business economist has a role to play by
analysing the risk that a firm faces.
•He can predict future business risks and
guide the company by Suggesting
alternative courses of action.
•He helps the managers in reducing or
minimising future business risks.

13. Profit and Production Planning:
•The main objective of any business firm is
to make maximum profits, A business
economist is required to analyse the
factors that are likely to determine profits
of the company. His knowledge of demand
and cost analysis helps him to guide the
management in devising profit plan.

14. Adviser:
•A business economist also plays the role of
an adviser. He studies, analyses and
Interprets the impact of government
policy, laws and regulation relating to
business. He has to suggest appropriate
policy that a company should adopt. He is
also capable of anticipating
•future policies of the government and
accordingly formulates company strategy.

15. Budgeting:
• Budgeting is another area where a business economist plays a
prominent role.
• Most of the firms have to make huge investment in plant and
machinery and other capital assets.This requires appropriate
planning as it has long run implications.
• A business economist is capable of formulating capital budget
for the company. He has the necessary qualification, skill and
expertise for the formulation of capital budgets. A company
seeks his guidance in this area too.

16. National and International Studies:
• He has to conduct national, international inter-Industry
studies and product line research to assist management
to take suitable decisions.

17. To SynthesizeVarious Polices
•It is the job of business economist to to
coordinate the activities of different
departments of the firm. Hence , he has to
work in harmony with other policy makers
of the firm.

18. To have Complete Information about
the Environmental Factors
• In order to make the business more viable and
profitable the business economist should have
detailed knowledge and information about
business unit and its environment.
• Broadly speaking the environmental factors can
be classified into two categories:
• (a) Business environment (external factors), and
• (b) business operations (internal factors).