As the Internet continues to impact on both business-to-business and business-to-consumer transactions, it seems likely that the demand for efficiency will increase. In the case of retail shopping, consumers may wait for more products to be available. This is far less likely in Internet retailing, where consumers can simply click over to another site in a matter of seconds and purchase the product there. This ease of transferring business to a competitor when shopping via web sites means that efficiency and responsiveness is likely to become even more crucial to a company’s success in the future.
Discuss the relationship between economics and management functions. How does the former contribute to the latter?
Economics and Management are ideal intellectual partners, each particularly fitted to strengthen and cross-fertilize the other. Economics provides the broader understanding of economic activity within which all organizations function; management in turn analyses the character and goals of that functioning. The management economics is often a subsection of the economic science and thus in broader sense a special form of the social, culture and Geisteswissenschaften. Like the economic science it is based in principle on the fact that most goods are limited and must by the participants be managed. It describes the economic functions of the enterprise within a national economy. In addition above all the optimal organization of the factors of production belongs apart from the company targets and the economical functions. In the broader sense also all households are enterprises.
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