Economics for Business Professionals

Why Attend

Economic decisions lie at the heart of business. Consequently, they are fundamental to its success. This course will allow business professionals to apply fundamental economic principles to real-world business challenges. Participants will gain knowledge and skills needed to craft successful business strategies. They will also learn how to analyze and assess the micro and macro environment in which their business operates in order to drive critical business decisions. 

Course Methodology

On this course, participants will be able to interact with instructor, view slides, participate in group discussions, and complete team exercises and case studies.

Course Objectives

By the end of the course, participants will be able to:

• Interpret economic knowledge and establish the economic objectives of their firm
• Estimate demand and analyze how demand elasticity affects revenues
• Estimate cost and use different pricing strategies for a variety of market structures
• Analyze the impact of essential macroeconomic indicators on the firm’s strategic decisions
• Understand the implications of government economic policies on the economy in general and on businesses in particular

Target Audience

Managers, business professionals, and individuals who have decided to explore how good economic decision making is fundamental to the success of business.

Target Competencies

• Economic reasoning and analysis
• Strategic thinking
• Micro and Macroeconomics
• Problem-solving and decision-making

The firm and its goals

• The economic goal of the firm and optimal decision making
• Goals other than profit
• Economic goals
• Economic objectives
• Noneconomic objectives
• Maximizing the wealth of stockholders
• Market Value Added (MVA)
• Economic Value Added (EVA)
• Economic profits
• Global application

Demand estimation and forecasting techniques

• Demand elasticity and the revenues of a firm
• Price elasticities of several industries
• Economics in practice: ‘Elasticities at a Delicatessen in the Short Run and Long Run’
• Demand estimation
• Regression analysis application
• Forecasting techniques
• Expert opinion
• Opinion polls and market research
• Surveys of spending plans
• Economic indicators
• Projections

Estimation of cost, pricing, and output decisions

• The importance of cost in managerial decisions
• The definition and use of cost in economic analysis
• Examples of ways companies have cut costs to remain competitive
• Cautionary note about the use of cost-cutting as a strategy
• Pricing and output decisions: Perfect competition and monopoly
• Pricing and output decisions: Monopolistic competition and oligopoly
• Special pricing practices
• Break-even analysis (Volume-Cost-Profit)

Macroeconomic indicators and the firm’s strategic decisions

• The importance of the business cycle to businesses
• Economic growth and its positive effects
• Factors affecting the economy and the firm
• Inflation
• Interest rates
• Unemployment
• Exchange rates
• Exchange rates effects on imports, exports, and real GDP

The effects of government economic policies on businesses

• The way fiscal policies affect businesses
• Expansionary fiscal policy
• Contractionary fiscal policy
• The way monetary policies affect businesses
• Expansionary monetary policy
• Contractionary monetary policy
• The effect of public debt on the economy and businesses
• The balance of trade and its impact on currency exchange rates