This is a science that focuses on evaluating organizations globally, as well as the relationship between their internal elements, and how the environment can influence the company. It is very important because it allows decisions to be made to respond to the demands of the market and society.
Organizations are entities that have various aspects that allow them to remain in the market and evolve. One of them is Business Economics , which focuses on working on the processes that affect the management of resources in any company. It can carry out its functions thanks to the help it receives from Statistics, Mathematics and Accounting.
This is how Business Economics focuses on managing resources in a precarious manner, in such a way that management goals are achieved efficiently, promoting financial health . The methods it uses allow maximizing the benefits of organizations. That is why it is very important to know what it studies and what its importance is.
What does Business Economics study?
Mainly, it studies the functions, criteria and organizational objectives . Although its most important objective is to evaluate companies from a global perspective, it also analyzes the relationship between their internal elements and how the environment can influence the organization. In this sense, it contemplates the application of theories and methods of modern economics to solve the problems faced by businesses.
The Spanish economist Santiago García Echevarría describes in his book Introduction to Business Economics (2020) that this science “has gone from being oriented to interpreting business activity as mere formalized functional systems, to being based on the analysis of specific rationality for the allocation of resources. This generates a Business Economics oriented to the development of capacities to configure institutional processes.”
With this new approach, Business Economics controls cpa email database economic processes through accounting, while analyzing the market with statistics and mathematical models . Added to this is the use of the intervention of Psychology and Sociology, with which the customer's behavior can be understood.
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What is its importance?
Considering Business Economics from an institutional perspective allows us to respond to the demands of the market and society, assuming a global perspective. In this way, it is important because it reflects the economic and social reality that surrounds organizations.
In turn, it offers a wide variety of skills that favor good economic decision-making and the creation of internal incentives. These skills are used to consider prices, optimization of the production process and product quality, as well as to make decisions related to possible horizontal and vertical mergers.
Likewise, Business Economics allows us to analyse and determine future expectations in a given division of labour, as well as the phases that must be integrated and the facets of the process that must be excluded in order to obtain the most suitable result. In this way, the allocation of costs and the conditions necessary for the adaptation and transformation of the company are contemplated.
Application of Business Economics
Business Economics uses the resources of economic analysis and financial operations to improve production, marketing and sales processes, among others. It integrates different disciplines to solve problems of different kinds, estimating, valuing and basing economic and financial portfolio decisions. This encourages the application of Business Economics in the following areas: