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Management Consulting/MS - 09: Managerial Economics

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Question
sir please help me for thease question

1.  Consider a monopolist facing the following demand and cost curves.
  P = 50 - 2Q          C = 25+10Q
         (Hint:  Total demand at any point P will be the summation of two quantities)
  Suppose the firm is able to separate its customers in two distinct markets with the following demand functions.
  P1 = 40 - 2.5Q1          P2 = 90 - 10Q2
  From the above equation calculate the following:
i) Total demand
ii) Marginal  Revenue
iii) Marginal Cost

2.“Management at all levels of specialized functions, is influenced by the critical elements of the business environment”.  Explain with suitable examples.

Answer
MS 09   PROBLEMS

SORRY, NO   EXPERTISE

============================
1.   “Management at all levels of specialized functions, is influenced by the critical elements of the business environment”.  Explain with suitable examples.

The Political / Legal / Regulatory Environment can be simply described as the laws and regulations that business has to follow in order to make sure the business owners do not get arrested, or have the business fined for noncompliance of some regulation. Laws are made by politicians - who enact these laws based on the likelihood they willget re-elected. The political environment is affected and effected by politicians who in turn are influenced by changes and challenges in the social – cultural environment (languages, ethnicity, immigration etc.), challenges in the economic environment (currency exchange rates, corporate activity, unemployment rates) and also to some extent the geographic environment in terms of how the region is laid out, rivers, mountains, proximity to other countries, weather, seasons etc. Purpose Business and corporations have gained the centre  stage of economic activity almost all over the world. Even political life and cultural practices of increasingly larger numbers are influenced by the actions of corporations and business practices in general. Hence, there is a need to look beyond the immediate, to understand thedeeper structures involved in the conduct of business. The purpose of this course isto situate business in its larger context and develop an appreciation for theinterrelationship of business and society. It also aims to situate institutions through which business is conducted, like corporations, nation state and markets. Further, values like morality of profit, private property, free trade, etc. are of relatively recent origin and their significance have varied over different period in world commercial history. Therefore there is a need to understand the historical context in which theseinstitutions and these values have originated and evolved. Classes The class discussions will primarily be based on real life cases or discussions with guest faculty. This will require that the student analyses the assigned readings ,preferably in small groups, and comes prepared with his/ her analysis for presentation in the class. Group/s should volunteer to initiate class discussion and make a presentation of their analysis for a particular class. Learning in the class will primarily happen through discussions amongst theparticipants and NOT through ‘lecture’ by the instructor. Thus, it becomeseverybody’s responsibility to get into a constructive dialogue and not just look at anindividual as ‘provider’ of answers. A constructive dialogue means not only to speak,but also listen carefully and draw out some of the relatively quieter colleagues. Thisis not a course on oratory and hence what matters is QUALITY of your participation –in speaking, listening, explaining and critiquing.If you are coming to a class it is expected that you have prepared assigned readingand are ready with your case-analysis; some times you may be expected to doreadings after a guest has discussed an issue. Hence in normal circumstances I
expect you to be present in all the classes. If for special reasons you are not able toattend a particular class, I expect you to explain it in writing as it is not only that youare not attending the class as an individual but you are also depriving the rest of theclass from your views and analyses.I expect you to do whole lot of activities and preparations in groups. So please makegroups of 4 rights after the first class as per your choice.
Evaluation
Class Participation & Presentations (30%)As already explained class participation is a fundamental part of learning in thecourse. The purpose of class presentations is to initiate the discussion on thereading/ case. The presentation may be done by a group. Please come prepared withyour presentation and only present your analysis in not more than 10 minutes. Iwould prefer if you inform me in advance in case you want to make a presentation ina particular session.Project (50% - 10% presentation, 40% report)The purpose of the project is to work on any real life business issue which brings theinterconnections between business and society. The issue should be such that youcan examine its various facets and bring out the complexities involved at the sametime it must have a focus. Submit the project proposal by 18 th
Jan. I expect you tointeract with me regularly regarding your project.Take Home assignment (10%)It will be a group assignment.Reflective Note (10%)Take up any class discussion and reflect on it and develop the arguments/ debatefurther. Here I am looking for your views and analysis



Political (incl. Legal)   [ [Poltical] EST[Environment][Legal] ]

==========================================
-Tax policies
what tax  hinder the business and what  taxes  incentives  are available]

[ if  the  tax  policies are  liberal / incentivated,  businesses  will  add
expansion ]
========================================

-International trade regulations and restrictions
[ does  the  government    encourage  exports / with  high tariffs  on  imports]

[ if  the  exports  policies  are  liberal / incentivated,  businesses  will  add
expansion ]
------------------------------------------------------------------------------------------
[ if  the import  policies  are  liberal / incentivated,  local  mfg. businesses  will  
contract ]
======================================================
-Employment laws]
[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

[if the government  relaxes the  rules on  skilled  migrants]

=======================================================
===================================================
-Interest rates & monetary policies
[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

[ if  the  interest  rate  goes down/ the monetary  policies  are liberal,  
as the  demand  goes  up, businesses  will  add
expansion ]
----------------------------------------------------------------------------
[ if  the  interest  rate  goes  up ,  the demand  will  go  down
 businesses   will  downsize / cut cost  ]
===================================================
-Government spending
[is  government  spending  is  significant   and  is it   under control ]

[ if  the  government  increases  the  spending  on  infrastructures etc,
the  demand  goes  up  , businesses  will  add
expansion ]
==================================================
-Unemployment policy
[what  is  the  employment / unemployment  policies  of the government ]
=====================================================
-Taxation
[  has  the  taxation    encouraged  the  industry ]

[ if  the  taxation policies encouraged  the  industry,  businesses  will  add
expansion ]
=======================================================
-Income distribution
[is there   balanced   income  distribution   policy ]

[ as  the  income level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ]
==================================================
-Education
[ what  are  the  education  policies /  is  it  successful ]

[ as  the  education level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ]
=======================================================
Rate of technology transfer
[ is  the  rate  of  technology  transfer  is  speeding  up ]

[ as  the  rate of  technology  transfer  speeds up, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ]
=======================================================
(Changes in) Information Technology
[ is  the   information  technology    rapidly  moving  and  is  there  government  support]

[ as  the  IT  usage  increases, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ]

I  HAVE  TAKEN  ONE  OF  THESE  --HUMAN  RESOURCE  FUNCTIONS
AS AN  EXAMPLE.


Political (incl. Legal)  

==========================================
-Tax policies
what tax  hinder the business and what  taxes  incentives  are available]

[ if  the  tax  policies are  liberal / incentivated,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
========================================

-International trade regulations and restrictions
[ does  the  government    encourage  exports / with  high tariffs  on  imports]

[ if  the  exports  policies  are  liberal / incentivated,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
------------------------------------------------------------------------------------------
[ if  the import  policies  are  liberal / incentivated,  local  mfg. businesses  will  
contract ,  which means  the  impact  on   HR  

-less  RECRUITMENT/ SELECTION
-MORE TRAINING  to improve  efficiency / productivity  

======================================================
-Employment laws]
[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

[if the government  relaxes the  rules on  skilled  migrants,
which  means  the impact  on  HR

-EMPHASIS  WILL  BE   ON FOREIGN   RECRUITMENTS.
-DEVELOPMENT  OF  OVERSEAS  CONTRACTS
-TRAINING  FOR THE  INCOMING  STAFF  ON   LOCAL CULTURE.
-TRAINING  FOR  MANAGERS   TO  MANAGE  DIVERSITY

=======================================================
Economic     

-Economic growth
[  what  is  the economic growth rate  /  what  are  the  reasons ]

[ if  the  economy  is on growth path,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
-COMPENSATION  NEEDS  REVISION
--------------------------------------------------------------------------------
[ if  the  economy  contracts/demand  drops,  businesses  will  reduce
volume ,  which means  the  impact  on   HR  

-less  RECRUITMENT/ SELECTION
-MORE TRAINING   TO  IMPROVE  EFFICIENCY/PRODUCTIVITY
-MORE INCENTIVATES   FOR   PRODUCTIVITY  GAIN

===================================================
-Interest rates & monetary policies
[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

[ if  the  interest  rate  goes down/ the monetary  policies  are liberal,  
as the  demand  goes  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
----------------------------------------------------------------------------
[ if  the  interest  rate  goes  up ,  the demand  will  go  down
 businesses   will  downsize / cut cost  
 which means  the  impact  on   HR  

-less  RECRUITMENT/ SELECTION
-MORE TRAINING  for   efficiency / productivity  improvements
-EMPHASIS   WILL  BE  FOR  ''PAY  FOR  PERFORMANCE''.

===================================================
-Government spending
[is  government  spending  is  significant   and  is it   under control ]

[ if  the  government  increases  the  spending  on  infrastructures etc,
the  demand  goes  up  , businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================
-Unemployment policy
[what  is  the  employment / unemployment  policies  of the government ]
=====================================================
-Taxation
[  has  the  taxation    encouraged  the  industry ]

[ if  the  taxation policies encouraged  the  industry,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=======================================================
-Consumer confidence
[ is  the  consumer  confidence   is   high/ strong and  if  not, why ]

[ as  the  consumer  confidence  goes up, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================
Social  

-Income distribution
[is there   balanced   income  distribution   policy ]

[ as  the  income level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================

-Demographics, Population growth rates, Age distribution
[ what  is   population   growth  and  why ]

[ as  the  population  level  goes  up and  age  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
====================================================

-Lifestyle changes
[ are  there  significant  lifestyle   changes     taking  place--more  modernization/ why  ]

[ as  the  life style   goes  up and  more modernization   improvements,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=========================================================

-Work/career and leisure attitudes
[ are  the  population      career  minded  and  are  seeking  better  lifestyle]

[ as  the  income level  goes  up and   workers  attitudes  changes,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================
-Education
[ what  are  the  education  policies /  is  it  successful ]

[ as  the  education level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=======================================================

-Living conditions
[ is the  living  conditions   improving  fast  and  spreading  rapidly]

[ as  the  income level  goes  up and  living  conditions  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=========================================================
Technological  

==================================================
New inventions and development
[ are  new  inventions     being   encouraged  for  developments]

[ as  more  inventions are brought  out, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
======================================================
Rate of technology transfer
[ is  the  rate  of  technology  transfer  is  speeding  up ]

[ as  the  rate of  technology  transfer  speeds up, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=========================================================
THE  BUSINESS  ENVIRONMENT  INFLUENCES  THE  DECISION  MAKING
IN  HUMAN  RESOURCES

SENIOR  MANAGEMENT--- -STRATEGIC

MIDDLE  MANAGEMENT----STRATEGIC

FIRSTLINE  MANAGEMENT-----PROGRAMMES

STAFF  LEVEL  OPERATION----ACTIVITY  LEVEL.


The  information  needs and decision making  activities  of the  
various  levels of  management

SENIOR  MANAGEMENT
Strategic business  direction

-information  for  strategically positioning  the  organization
-competitive  analysis and  performance evaluation,
-strategic  planning and policy,
-external factors that  influence  the  direction
etc

MID LEVEL MANAGEMENT
Organizational and operational functions

-information  for  coordination  of  work units
-information  for  delivery  programmes
-evaluation  of  resources usage
-budget control
-problem  solving
-operational  planning
etc


MID  LEVEL  MANAGEMENT
Programme  management within units

-information  for  implementing programmes
-information  for  managing   programmes
-management   of  resources usage
-project scheduling
-problem  solving
-operational  planning
etc




LINE  MANAGEMENT
Activity management

-information for  routine  decision  making
-information  for  problem solving
-information  for  service delivery
etc.

###########################

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