• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15

Managerial Performance and the Need for Data.

Extracts from this document...

Introduction

Managerial Performance and the Need for Data All the economic actors active in a market consider and analyze permanently the evolution of the business cycle by using available data in order to make rational choices in their business decision. In other words, the decision making relies in all its phases and in all circumstances on data, here including statistical data. Managers, entrepreneurs and businessmen use data aiming at: - Understanding their company (their department as part of the company) and their business environment (business risks and opportunities in the domestic and international market) - Solving disturbances in the functioning of their company - Improving the performance of their business. To this end, they build mental models by answering questions like: - How is my business (department or company) doing now? - How has it done in the past? What were the highest and the lowest performance in the past and where is my business now as compared to the historical maximum and minimum level of performance? - At what levels could I perform in terms of sales, profits, investments, number of personnel, opening towards the international market, etc? - How are my competitors doing in the domestic and/or in the international market? - Etc, etc. Answering questions like the above mentioned ones, a business professional makes use of: - Primary data from the day to day reports of the company (department) and/or from the official statistics at industry and market level. These data show quantitative aspects of the economic life. - Derivate data resulting from comparisons (over the time and/or space bound), from calculus, etc. These data reveal qualitative aspects of the analyzed variables. Sources of data needed in business decision There are three different sources of data: 1. The company (department) creates itself information which is summarized by the management information system (MIS) in routine reports. They contain financial accounting, marketing and operations data, which describe the actual state of the firm (department) ...read more.

Middle

Their main resources are the voluntary contributions and donations of individuals and/or of households as well as sponsorship and entrepreneurial incomes. 6. Households main function is consumption of goods and services. Eventually, households may have also productive activities achieved by family association or by independent private entrepreneurs. The main resources of households are represented by compensation of labor, entrepreneurial incomes, and transfers from other sectors. All the non-resident entities active on the economic territory of the country are grouped into a distinct external sector (known also as the rest of the world sector). Certain key aggregates, such as gross domestic product (GDP) or national income (NI) are widely used as performance indicators of the economy of a country. They are estimated within the SNA, but the calculation of such aggregates has long ceased to be the primary purpose for compiling the accounts. Data provided by SNA are used to explain structural aspects of economic growth, to show regional gaps in development, to better understand the impact of various factors on the present and expected results of macroeconomic policies, to sense the business environment (risks and opportunities). The national accounts are designed to provide a coherent and consistent set of data for various types of economic analysis. The major macroeconomic aggregate - GDP - provides an estimate of the overall unduplicated value of production in a country's economy. However, while being an important indicator of a country's economic performance, GDP is not necessarily a reliable indicator of overall community welfare or of quality of life. A number of other aspects, such as distribution of income, life expectancy, public health, education, environment quality, crime rates etc. have to be taken into account when discussing welfare or quality of life. Estimation of Macroeconomic Aggregates The business environment of a country (region) is scrutinized by business professionals through a group of statistical indicators expressing the national (regional) performance. ...read more.

Conclusion

as an annual average of the day by day exchange rates established as a result of the transactions in the inter-bank market during the reference year. This concept is easy applicable and understandable, but many economists argue that ER might alter not only as an effect of changing balance between supply and demand of goods, services and factors in the real market. Inflows and outflows of short term capital and some para-economic factors (emotional reactions of the resident and non-resident holders of bank deposits in local and foreign currency, insufficient coverage in reliable information of the money market, etc.) have also a strong impact on the dynamics of ER. The PPP concept involves another conversion rate which is the result of comparing the value of a standard consumption basket expressed in various national currencies and also in the reference currency. The standard consumption basket has been designed as the sum of goods and services regularly purchased by a family for covering living needs during one month. The advantage offered by this concept consists in eliminating the impact of the para-economic factors during periods of market instability and/or macroeconomic tensions in a country. The critique of this concept refers to the fact that only final consumption goods and services are involved in the estimation of PPP, all the capital goods being neglected. Many economists are also questioning the structure of the standard consumption basket - an abstract list of goods and services which is often quite far away from the real composition of the final consumption of local families. According to the latest estimates of the IMF and the World Bank (see also data in Table No. 2.3.), Romania registered in 2001 a GDP/capita of: - 1710 USD/inhabitant according to the WB Atlas method, which uses the ER concept. This value ranked Romania on position 110 in the world economy. - 6980 USD/inhabitant when using the PPP concept. Romania ranked 87 in the world. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Macroeconomic Objectives and their impact on Business Activity

    If a greater output can be produced at a lower cost per unit (i.e. if productivity is increased), then the economy can achieve sustained economic growth without inflation. Hence, an increase in aggregate supply is often the key long term objective of government economic policy.

  2. Problems in Statistics and Research Methods

    existence of government programs, levels of education and training, research and development transfer, commercial and legal infrastructure, internal market openness to competition and international trade, access to physical infrastructure and existence of cultural/social norms which affect attitudes towards entrepreneurship. Each participating country was required to undertake 36 such interviews and

  1. Bellway Plc is a holding company with subsidiaries; its main subsidiary company is Bellway ...

    Interim & final dividends are declared after their balance sheet dates; therefore liability for dividends will on longer be shown on the balance sheet. This would decrease the current liability & increase the overall balance sheet total. Share-based payments IFRS 2 Requires measuring a fair value of share options and

  2. The structure of the airline industry.

    [Insert Graph-Trade-Weighted] [Insert Graph-XRateCrises] Although the U.S. economy is currently in a mild recession, it is stronger than the faltering economies of some European and Asian countries. In the late 1990's, many Asian countries experienced severe recessions. For example, in 1998, Indonesia experienced an economic downturn on the scale of the Great Depression.

  1. The Nature of Macroeconomics

    --> O � * CAD still low * Large idle capacity still in economy --> investment sluggish as firms increase O with existing equipment Late recovery * Inflation starts to pick up * Interest rate rise * UE contuse to fall * Consumption strong * CAD rises as imports rise

  2. Supply side policies and its economic impact.

    As a result, nearly all taxes are distortionary. Laffer curve. Because distortionary taxes move the economy away from its first-best equilibrium, it is entirely conceivable that higher tax rates actually result in lower tax yields. This effect is sometimes called the Laffer curve. This curve describes a theoretical relationship between total government tax revenues and the average tax rate (the ratio of tax receipts to GDP).

  1. Toyota Motor Company Limited

    Toyota's central philosophy is to grow in harmony with society producing automobiles that enjoyed and cherished the world over. Now-a-days in every corner of the world the drivers have significant diverse needs. Some are looking for an environmentally friendly vehicle while others emphasis on safety and performance.

  2. Retailing In India - A Government Policy Perspective

    As a result the "Rule of law," which has often been cited as one of the attractive features of the Indian economy for foreign investors, is found to be a significant positive factor by only 3 per cent for FDI in India.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work