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Managerial Economics_Module 10 Assignment

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Q 1. Analyze the influence of macroeconomic forces on the organization’s strategies and performance.2. Analyze inefficient use of resources using concepts of economies of scale, excess capacity, resource scarcity and opportunity cost3. Employ rational decision-making methods under conditions of uncertainty

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Organizations have been encouraged to develop strategies of business geared towards performance improvement in order for competitive advantage to be sustained. This is because of the competitive environment of business which is experienced by the organizations. The relationship of strategy-performance is affected and manifested by the four elements of macro environment of the company in variable degrees. An appropriate choice of strategy is required in order for the interface of company-environment to be managed. It is implied that companies are reliant on the environment.