SHRI KRISHNASWAMY COLLEGE FOR WOMEN

Accredited by NAAC with B+ grade

Affiliated to University of Madras
Managed by Krishnaswamy Educational Trust(Regd.)
Anna Nagar, Chennai-40

DEPARTMENT OF BA BUSINESS ECONOMICS

TOPIC:BUSINESS ECONOMIC STUDIES

PRESENTED BY,
Team leader:
ATCHAYA.S III BUS ECO
Teamates:
HEMAMALINI.N III BUS ECO
AABITHA.B III BUS ECO
SANTHANA LAKSHMI.H III BUS ECO

BLESSY.J III BUS ECO

CONTENTS:
• Meaning of economics and business economics
• Definition of business economics
• Difference between economics and business economics
• Objectives of business economics
• Scope of business economics
• Significance of business economics
• Characteristics of business economics
• Application of business economics
• Responsibilities of business economics
• Role of business economics
• How to define a problem in business economics
• Subjects included in UG business economics
• After your graduate - what type of jobs you can do???
MEANING OF ECONOMICS AND
BUSINESS ECONOMICS:
ECONOMICS:
• Economics is a social science concerned with the production, distribution, and
consumption of goods and services. It studies how individuals, businesses,
governments, and nations make choices about how to allocate resources.

BUSINESS ECONOMICS:
• Business economics is a field of applied economics that studies the financial,
organizational, market-related, and environmental issues faced by
corporations. Business economics encompasses subjects such as the concept of
scarcity, product factors, distribution, and consumption.
DEFINITION OF BUSINESS ECONOMICS
• According to Spencer and Siegelman, "Business Economic may be defined
as the integration of economics theory with business practices for the
purpose of facilitating decision making and forward planning by
management."
• According to McNair and Meriam, "Business Economic consists of the use
of economic models of thought to analyse business situation"
• According to Joel Dean, "The purpose of managerial economics is to show
how economic analysis can be used in formulating business policies"
• In the words of Joseph Lessee, "Business Economic is the use of economic
theories by the management in making business”
 DIFFERENCE BETWEEN ECONOMICS &
BUSINESS ECONOMICS
ECONOMICS BUSINESS
[Link]: [Link] :
Economics is a study about understanding Business is a process of exchange of goods and
human behaviour and the decisions taken by them services between people and entries which involves
and their impact on the overall economy of the the exchange of money.
nation. [Link] CONCEPTS :
2. KEY CONCEPTS : Business does not have much - written theories or
concepts as its main motive is to increase shareholder's
Key concepts of economics include supply and wealth.
demand, the rate of interest, the rate of exchange,
[Link] :
International trade, the balance of payments etc.
There are different types of businesses -
3. TYPES:
1. Sole proprietorship.
1. Microeconomics and macroeconomics
2. Partnership.
[Link] and Applied economics 3. Company.
[Link] and Financial economics 4. Limited liability business.
 DIFFERENCE BETWEEN ECONOMICS
& BUSINESS ECONOMICS
ECONOMICS BUSINESS
4. MEASUREMENT AND ANALYSIS [Link] AND ANALYSIS INVOLVED
INVOLVED: :
Economists measure and value the changes Businesses have short term and long - term goals
in the variables. The measurements can be absolute based on their mission and feature vision. The
or relative. Economics helps in measuring market businesses define key performance indicators ( KPIs )
interactions on the value of various products. to reach their objectives. KPIs are generally
comparable across similar businesses and for a year
5. PROBLEM DEFINITION : on year metrics.
Economics tends to define various problems [Link] DEFINITION :
faced by the nation. It's individuals and the Businesses tend to solve various problems faced
government. The problems may include poverty. by the nation and most businesses are built on the
Illiteracy, low economic growth, taxes recession, identification of such problems and then solving them
the standard of living etc. for the individuals.
OBJECTIVES OF BUSINESS ECONOMICS

• To integrate economic theory with business practice

• To apply economic concepts and principles to solve business
problems
• To employ most modern instruments and tools to find solutions to
business problems
• To make optimum use of scarce resources of a firm
• To help in making overall development of a firm to help the
manager to understand the intricacies of business problems and to
make right decision at the right time
SCOPE OF BUSINESS ECONOMICS
1. DEMAND FORECASTING :
Demand forecasting is an important topic studied in business economics. Every business firm initiates
and continues its production process on the basis of the anticipation of more demand for its goods in the future. It makes
research and conducts market survey with a view to know the testes and fashions of the consumers. It pools up the
resource and starts production for meeting the future demand. Business Economics analysis the demand behaviour and
forecasts the quantity demanded by the consumers.
2. COST ANALYSIS :
Business Economic deals with the analysis of different costs incurred by the business firm. Every firm
desired to minimize its costs and increase its output by securing several economics of scale. But it does not know in
advance about the exact costs involved in production process. Business Economics deals with the cost estimates and
acquaints the entrepreneurs with the cost analysis of their firm.
3. PROFIT ANALYSIS :
Every business firm aims to secure maximum profits. But at the same time it faces uncertainty and risk
in getting profits. It has to make innovations in production and marketing of its goods. Business Economics deals with the
matters relating to profit analysis like profit techniques, policies and break-even analysis.
4. CAPITAL MANAGEMENT :
Capital management is another topic dealt in Business Economics. It denotes planning and control of
capital expenditure in business organisation. It studies matter like cost of capital, rate of return, selection of best project
etc.
SCOPE OF BUSINESS ECONOMICS
[Link] growth:
Business economics suggest various ways and means for maintaining the
growth rates in developed economies it also analysis the factors obstruction the
economic growth of these countries
[Link] development:
Developing countries aim at archiving economic development within a short
span of time. Business economics enables us to understand the nature and conditions
necessary for successful organization of business firm.
7. Performance of the economy:
Business economics helps as to access the performance of economy. We can
judge the position, progress and future of an economy through several theories
model's of business economic.
SIGNIFICANCE OF BUSINESS ECONOMICS
Business economics covers various important concepts, such as demand supply analysis; Short run cost and long run costs; and law of
diminishing marginal utility. These concepts support managers in identifying and analysing problems and finding.
IDENTIFYING VARIOUS BUSINESS PROBLEMS:
various companies face many problems such as labour problems, pricing problems and other problems related to
government controls and restrictions. The basic job of business economist is to identify various problems that are uplifting a company.
PROVIDING A QUANTITATIVE BASE FOR DECISION MAKING & FORWARD PLANNING:
To Providing a quantitative base for decision making, policy making & forward planning in a business. Business
economist helps to study the in - depth knowledge of the various factors, controllable & non- controllable which influence the working of
a business unit.
ADVISORY TO THE COMPANY:
The business economist advises the businessman on all economic and non- economic matters. By virtue of business
economist experience it helps to analyse various problems related with volume of investment, sales promotion, competitive conditions,
financial position, labour relation, and government policies so that he it will help to secured the business while doing every activity.
KNOWLEDGE ABOUT THE ENVIRONMENT FACTOR WHICH AFFECTS THE BUSINESS:
In order to make the business more viable and profitable the business economist should have a detailed knowledge and information about
the environment of the company. Broadly speaking the environmental factors are divided in two parts :
[Link] environment (external factors)
[Link] operations (internal factors)
CHARACTERISTICS OF BUSINESS ECONOMICS
[Link] ECONOMICS NATURE :
Business Economics is micro economics in its nature
because it deals with matters of a particular business firm only.
2. USE OF ECONOMIC THEORIES :
Business Economics users all economic Theories
relating to the profit, distribution of income etc.
3. REALISTIC ONE :
Business Economics is a realistic science. It studies
all matters concerning business organisation by considering the real
conditions existing in the business field.
CHARACTERISTICS OF BUSINESS ECONOMICS

[Link] SCIENCE :
Business Economics is a normative Science. It studies the matters
concerning the aims and objectives of a business firm. It determines the methods
to be adopted for achieving such objectives. It also makes enquiry into the good
and bad in decision making. Hence it is a normative Science.
5. MACRO - ECONOMICS USES :
Even though business economics has the nature of micro -
economics, it also uses macro - economic approaches frequently. Certain matters
in macro - economics like Business Cycle, National Income, Public Finance,
Foreign Trade etc. are essential for business economics. So, Business Economics
Uses the macro - economics phenomenon for taking business decisions
APPLICATIONS OF BUSINESS ECONOMICS

• Use of optimum techniques to improve organization's

decisions
• Understanding individual and market demand decisions to
forecast demand
• Analyse cost and supply structure to understand supply
decisions
• Understanding markets Understanding external factors like
unemployment, inflation
RESPONSIBLITIES OF BUSINESS ECONOMICS

• To bring reasonable profit to the company.

• To study external and internal factors. influencing the business
• To make accurate forecast.
• To establish and maintain contact with individual and data
sources.
• To keep the management informed of all the possible economic
trends.
• To participate in public debates.
• To earn full status in the business team.
ROLE OF BUSINESS ECONOMIST

The term role refers to the behaviour and action exhibition by a person in a given
situation or environment.
• To identity various business problems their cause and suggest remedial measures.
• To provide a quantitative base for decision making and forward planning.
• To act as a thinker.
• To act as economic advisor to the firm.
• To respond to the dynamic changes taking place in market situation.
• To conduct various types of research studies.
• To synthesize various policies.
• To have complete information about the environment factors.
 HOW TO DEFINE A PROBLEM IN BUSINESS ECONOMICS:

• In this step, the problem is thoroughly analyzed. There are a couple of

questions one should ask when it comes to identifying the purpose of the
discussion.
*What exactly is the problem?
*Why the problem should be solved?
*Who are the affected parties of the problem?
*Does the problem have a deadline or a specific time line?
SUBJECTS INCLUDED IN UG BUSINESS
ECONOMICS
* Economics of firms and strategy
* Money and Banking
* Managerial Economics
* Marketing
* Statistics
* Entrepreneur Development
* Micro Economics
* Environmental science
* Macro Economics
* Indian Economy
* International Economics
* Fiscal Economy
* Human Resources Development
 AFTER YOUR GRADUATE - WHAT TYPE OF JOBS YOU
CAN DO???

• Accountant • Corporate Manager • Political Advisor

• Author • Economist • Portfolio Manager
• Banker • Entrepreneur • Professor
• Blogger • Executive Assistant • Project Manager
• Brand Strategist • Financial Advisor • Public Policy Analyst
• Financial Analyst • Public Relations
• Business Ethics Consultant
• Fund Manager Representative
• Business Media
Correspondent
• Recruiter
• Government Worker
• Retail Strategist
• Business Planner • Industry Analyst Lawyer
• Risk Analyst
• Commodity Trader • Logistics Specialist
• Stock Analyst
• Corporate Consultant • Magazine Contributor • Trader
• Marketing Researcher • Marketing Director • Venture Capitalist