BEC 3323: Managerial Economics - Group Research - 2016

Introduction

“Managerial Economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organization can achieve its aims or objectives most efficiently.” – Dominic Salvatore

Managerial Economics provides an economic background to the decision making process. In the words of Salvatore “Managerial Economics is considered as the application of economic theory and decision science tools to find the optimal solutions in managerial decisions”.

Hence, BEC 3324: Managerial Economics course offered by the Department of Business Economics provides the understanding of the application of economic theory in order to achieve organizational objectives most efficiently and effectively.

Objectives

Objectives of the group assignment are as follows.

• Give an understanding of practical application of economic tools in business firm’s decision making in Sri Lanka
• Improve the report writing skills and other communication skills of future managers
• Provide opportunity to learn the way of being succeeded through team working

• Theory in Practice : a comment

Economists use the science of economic analysis to develop theories, or models, to explain how some aspect of the economy works.  A theory, or model, is a simplification of economic reality that captures only the important elements of the relation under consideration.  Theories or models are used to make predictions about the world and can be presented verbally, graphically or mathematically.

The role of theory is not well understood.  Perhaps you have heard someone say, ‘Oh, that’s fine in theory; but in practice it’s another matter’.  The implication is that the theory provides no aid in practical matters.  Individuals who say this fail to realize that what they are actually doing is substituting their own theory for a theory they either do not believe or do not understand.  In effect, they are saying, ‘I have my own theory, which works better’. Hence, understanding theory in practice is very much important for the innovative theory.

• Application of Managerial Economics tools

Under this course, the students study many statistical and decision science tools for the solving business problems in organizations. Therefore when students analyze management issues and make recommendations in their point of view, they should justify the selection of tools and techniques used

• Improving Communication Skills

Strong communication is the most powerful weapon for the smooth function of any organization in the current context. Wrong information may be disastrous for organizations. Therefore report of the assignment should be in a proper format. Especially the report should not be too short or too long. It should be comprehensive of all the relevant details and justification but free from irrelevant ones.

Content of the Assignment

Students from each department should do their assignments related to the allocated category.

Groups are required to conduct group researches applying managerial economic theory in business decision making to the selected organization. The current practice of the firm should be critically analyzed using actual data. At the end the students are required to make recommendations to be applied in future.

The students are given the following two options for the areas to be covered in the group research.

Option A:

1. Demand Estimation
2. Demand Forecasting
3. Theories related to Market Structure

Option B:

1. Production Estimation
2. Cost Estimation
3. Theories related to Market Structure

Each group can select any of the above two options and the chapters of the report should be organized accordingly.

Guideline for the Report

• Font size : 12 in the body of the report
• Font Style: Times New. Roman
• Line spacing: 5 on 8 ½” X 11” paper with 1 inch margins from all sides.
• Number pages consecutively.
• Reference list should be ordered with alphabetically.
• No pictures can be presented in the body of the report. All pictures and attachments should be in the appendix.

Note: Use the given template to prepare the report.

Evaluation criteria

• Report

Marks allocated for the report is based on the extent to which the students have followed the guidelines for the report.

• Presentation
• Poise :

1. The speaker should be comfortable
2. The speaker’s ability to connect with the audience

• Clarity :

The speaker should be able to convey their ideas.

• The quality of the information :

The speaker should provide enough details to support the point of the presentation but not too many unnecessary details that may confuse or bore the audience.

• The level of organization :

Presentations should be well structured and organized. Simple things such as making sure there is a proper introduction and conclusion can go a long way in making the presentation a success.

Deadlines of the Assignment

1. An information sheet mentioning the information of the group members and selected business organization should be submitted to the Department of Business Economics on 14^th March 2016, before 1.00 pm. The information sheet should be according to the given format. The names of the group members should be indicated according to the order in the group list uploaded to the LMS. If the information of a student is incorrect or incomplete that student would not be considered as a member of the group.

2. The drafted report (a soft copy) should be sent to the email address, me2016@gmail.com on 3^rd May 2016, before 11.59 pm.
3. Presentations are scheduled to be held on the second (2^nd) week of May 2016. The final report should be prepared including recommendations given by the evaluators during the presentation session.
4. The final report – a printed copy of the report should be submitted to the Department of Business Economics on 20^th May 2016, before 1.00 pm and a soft copy should be sent to the email address, me2016@gmail.com on the same date before 11.59 pm.

Notes:

• Lists of group members are available in the LMS.
• Templates of the Group Information Sheet and the Report are available in the LMS.
• For instructions the students can meet their respective Tutorial Lecturer.