Management in Business with MBA

Key Indicators of Macroeconomics or Important Macroeconomics Factors

What are Macroeconomics effects on Entrepreneurship and vice verse ?

What are Macroeconomics effects on Entrepreneurship and Entrepreneurship on Macroeconomics in Country and Global level?
As before I wrote about entrepreneurship and Corporate entrepreneurship   and Macroeconomics and Macroeconomics key indicators ,we know that each business requires a platform and economy in country is the basic platform for the growth in the business .
At first time we are talking about requirements of a business and factors to start a business. PEST factors are the basic assumptions of each business activity and more specifically for profitable businesses .
PEST factors :
They are Political , Economical , Social ,Technological factors and external factors for business. The importance of these factors is clear . Pest factors are the macroeconomics factors in other word and each country has situation in scale of national level or global level. When you want to start an business activity definitely you will check the condition , market and you will do a simple feasibility study stand on your own or may be take the advisement of other people or experts .

Secondly    , we know entrepreneur is a person who undertake the risk to start a new venture or make a new product , market , do innovative activity or creativity or any change and so on . An entrepreneur has an idea and conceptualize it and tries to make it productive or useful or profitable in case of helping to himself or society to improve . This productivity has a cycle and create business and we know today successful entrepreneur has some feasibility study .
There is a paradox , that we can see entrepreneurship helps the economy and society to grow and as a business it requires the Macroeconomics factors to support it.

Macroeconomics on Entrepreneurship
If the economical or any other PEST factors are not good how it is possible to talk about the success or how an idea can survive a society ? For example Greece monetary and recession problem ?
You have good idea but you are not in heaven , the real world is complicated , we are not talking about the competitors or suppliers , we are talking about the Recession and Growth and Inflation in economy .
For example you are living in Iraq or Saudi Arabia , and you have a modern  idea and you know , if you create the product you have good market but P factor (political) factor is not ready. May be you select other countries but how and when ? and what is dependency of row material to the geographical area ?

Entrepreneurship on Macroeconomic
This is clear and appears from thousands of samples in world that how entrepreneurs survive the economy , for example the IT growth in world and US.

In my opinion , an entrepreneur requires at least , minimum condition to do some basic activities and  start to improve . For example if Political problems are barriers other factors should support .
How we can analyse the majority of the PEST and which of them is the most important ?

For more information see:

Key Indicators of Macroeconomics or Important Macroeconomics Factors

5 Things You Should Know About Sustainability in Macroeconomics

SWOT in Business with Macroeconomic

Macroeconomics and SWOT in Business
As I have written about macroeconomics for managers in economy and key indicators of macroeconomics    , there are important points related to the SWOT in business . Nowadays ,each business in modern aspect starts with strategic view to the marketing . This means that marketing gives a form to starting the business , and activities in business are based on the marketing .
The strategic view required the concentration on the four groups of factors. Internal factors : Strengths, Weaknesses.These factors are related to the objective of a business and potential for entrepreneurs to start a business and can contain factors : Capital , Skills , Staffs, Shared value , Style  ,...
External factors: Opportunities, and Threats .
These factors included the external environment of business like Competition , market opportunity , Strategy , Structure of economy  , System

We know they are 7 S , that can help business : Strategy , Structure , System , as Hardware and Skills, Staffs , Shared value and Style as Software for business.
A CEO or MBA manager required to know about external factors or macro factor for business .For example a manger is thinking about investment , when you should invest for new expansion ,and hoe effect the economic growth your business .
A macroeconomic swot analysis includes the analysis of country key indicators of economics like GDP , FOREX rate , Unemployment, Business cycle , Fiscal policy (Taxation) have big impact on business profitability .
The main part of these factors can be in group of Opportunities and Threats . Growth is an opportunities and when business cycle is in recession it is a threat for business .For example the inflation rate helps to invest on moderated condition and avoid to high investment , because the result of inflation is lower power in purchase and at first people avoid to purchase for unnecessary products means low demand .

The SWOT analysis helps to design new strategies in business with matching the strategies .Matching the strategies means using the good factors against the bad factor . In another hand you have strengths and opportunities and they help to cover the weakness and threats .

For more information see:

Key Indicators of Macroeconomics or Important Macroeconomics Factors

5 Things You Should Know About Sustainability in Macroeconomics

Key Indicators in Macroeconomics for MBA

Key Indicators in Macroeconomics
Before ,I wrote the importance of Macroeconomics for managers and MBA Students , you can check it
Microeconomic and macroeconomic Study in MBA and we discussed What is Macroeconomics and
Circulation .
Now , we go in depth with Macroeconomics factors or Indicators .In order to understand the dynamics of business environment it is essential to understand the nature of key indicators of macroeconomic environment .
Effect of Macroeconomics in Business
Actually , managers are related to these impacts and they need to know how one indicator effected the economy or what is the result on the business . May be you ask , some parts of business are microeconomics, but I will say these factors have roots in macroeconomics .
Internal factors for a business at first are micro size but in a duration there are external impacts of environment on them . For example , the consumption and market behavior for goods and commodities , there are two analysis tools are called the Cross elasticity and Income elasticity .

Macroeconomic key indicators in relation to Microeconomic factors

Cross elasticity shows the substitution of a good for related good and Income elasticity shows the relation of income and demand for a good . In another hand these two factors show the consumption behavior for different levels of income . High level income then low demands for inferior goods and higher demands for a normal good.
A market manager wants to make decisions in different market segments and one important feature is income level .What is the major parameter for income level in economy ? The answer is GDP .

In detail GDP has details in production , income , .... .
Another factors that effect the income , Inflation and Growth , and Employment .

The key indicators of macroeconomics

Indicators: they are important variables , which show and reflect the state of economy . In another hand , they show how economy works healthy or sick . The impacts of Economy as the Environment for each business is clear . The simple evidence is " Business is an open system " .

Macroeconomics key indicators :

GDP or Gross Domestic Product
Rate of Inflation
Growth
Employment and Unemployment
Foreign Trade
Exchange Rate
Forex Reserve
Money Supply

There are other indicators that we call second group :

Sectoral Share
Agricultural Output
Electricity Generation
Economic Infrastructure
Social Indicators

Comparison in key indicators US, Euro, Japan ,China

You can see also this book : Macroeconomics for MBA 's and Masters of Finance
In fact a business is an open system and will be affected with national and world economy . The GDP in simple way shows the 1.income level in country (purchase power) , 2. Economy power and trend( for investment) , 3.Government regulation and Investment and so many other macroeconomics analysis.

Understanding the relation between micro and macro factors related to business is a powerful skill that some of managers have and some of them do not . In recent complicated condition of world economy and Globalization effect on the world and country level economy , there is an innovation of managers to directly use the macro factors .
It means for decision regulation or evaluation of alternative in decision , and monitoring the result it is good to uses the macro factor with micro factors .

For more information see:

5 Things You Should Know About Sustainability in Macroeconomics

MBA Curriculum or Syllabus

MBA Curriculum
MBA or Master of Business Administration is a practical course in master degree for whom to want knows more about business and management .There are variety fields given to students. The main aim of Masters degree in business Administration is to provide functional and vocational orientation to students by preparing them mentally and technically for their careers.

SPECIALIZATION
A stream of electives will be offered. These will be developed and updated from time to time. To qualify for a specialization in a stream, a student will have to take a minimum of 5 elective courses in a stream to qualify for a specialization area. This will facilitate students to specialize in more than one stream of specialization. A student, however, can choose such combinations which will help him / her to have dual specialization depending on the courses offered in the specialization scheme. A student who fails to choose at least five papers in one of the electives shall not be eligible for any specialization.
After first year there are some fields for students to follow ,depend on university or college , and make specialization in those fields . Sometimes student can get degree in two fields . For example :

The specialization in

Finance Management
Marketing Management
Human Resource
Management and Systems
Information System

The course contents in 2 first semester are fixed sometimes and are like below:
First Semester Syllabus
1. Organization Behavior
2.Accounting for Manager
3. Business Perspective or Business Environment
4.Managerial Communication
5.Managerial Economic or Microeconomics
6.Mathematic or Bu mastic (Mathematic and Statics)
7.Information Technology or MIS ( Management Information System)

Second Semester Syllabus :
1. Quantitative Methods & Operations Research

2.Human Resource Management or HRM

3. Financial Management

4.Marketing Management

5.Legal Aspects of Business or Business Low

6.Production and Operations Management

7.Research Methodology & Technical Writing

Third Semester Syllabus :

Entrepreneurship Development

Business Ethics & Corporate Governance

Electives 1 from specialisation

Electives 2 from specialisation

Electives 3 from specialisation

Electives 4 from specialisation

Electives 5 from specialisation

Internship Report and Viva-Voce

Fourth Semester Syllabus :

Strategic Management

International Business

Electives 1 from specialization

Electives 2 from specialization
Electives 3 from specialization
Electives 4 from specialization
Electives 5 from specialization

Dissertation

Dissertation Viva-Voce

ELECTIVES TO BE OFFERED IN III & IV SEMESTERS

1. Agri-Business management

2. Bank Management

3. Entrepreneurship

4. Finance

5.Human Resource Management

6. Information Technology

7.Insurance & Risk Management

8. International business

9.Management of NGO’s & NPO’s

10.Manufacturing management

11.Marketing

12.Services Management

13.Event & Media Management

14.Rural Management

Internship Report and Viva-Voce

Macroeconomics in MBA!

As one of my blog : USE STUDY OF MACROECONOMIC IN MBA , I noticed that it is very useful for MBA students or future managers to have knowledge about Macroeconomics . But the problem is that , only one paper is related to economics : Managerial Economic or Microeconomics and another paper Business Perspective or Business Environment in one module has key indicators(like GNP , GDP , Inflation , Fiscal Policies , Monetary Policies ,.... ) as macroeconomics parameters for business environment.

Actually , with globalization , we need more and more to know about Business Infrastructure. For example with growing up the MNC's in world and power of this companies , what is major policies to regulate those companies . Who is responsible about a company that has more than 100 big branches in 100 countries and , this company is more powerful than those countries that has branch . This company's budget or turnover is more than some countries . Day by day you can see some of this companies .

I remember , in last week news , that Barack Obama , US. president , made a meeting with Silicon Valley bigwigs .Obama’s tech summit was held at the home of venture capitalist John Doerr of Kleiner Perkins Caufield and Byers, and included a veritable who’s who of Silicon Valley bigwigs. In addition to Jobs, the list reportedly included Yahoo’s Carol Bartz, Twitter CEO Dick Costolo, Oracle’s Larry Ellison, Netflix CEO Reed Hastings, Google chairman Eric Schmidt and Facebook founder Mark Zuckerberg, among others.

Why this happened , Because of power and potential of those companies , USA government tries to use resources and we will see the results .

For more information see:

Key Indicators of Macroeconomics or Important Macroeconomics Factors

5 Things You Should Know About Sustainability in Macroeconomics

Microeconomics and Macroeconomics Study in MBA

USE STUDY OF MACROECONOMICS IN MBA

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Common distinctions are drawn between various dimensions of economics. The primary textbook distinction is between microeconomics, which examines the behavior of basic elements in the economy, including individual markets and agents (such as consumers and firms, buyers and sellers), and macroeconomics, which addresses issues affecting an entire economy, including unemployment, inflation, economic growth, and monetary and fiscal policy.

WHAT IS MACROECONOMICS ?

Macroeconomics is the study of the national economy viewed as a single interactive system. It is concerned, not with individual transactions, but with economy aggregates, including national income, the rate of inflation and the unemployment rate , growth , business cycle , etc .
At the theoretical level it seeks to explain how national income grows, how it fluctuates and what then happens to prices and unemployment. At the positive level it tests competing theories against the evidence provided by economic statistics, and it estimates the numerical relationships required to construct forecasting models. At the application level it considers what policies would serve to promote economic stability and growth and full employment.

Macroeconomics Circulation

You can see also this book : Macroeconomics for MBA 's and Masters of Finance

HOW USE STUDY OF MACROECONOMIC IN MBA

Macroeconomics is a subject that provide strategic and tactical tools for manager in various situation and condition in globe economy . As managerial roles decision making is basic role and everyday managers are trying to find best alternative between conditions and course of actions. MBA students are prepared to play management roles or advising top management as CEO teams .During the MBA courses in universities the students try to improve some skills and one of the key feature is economics skill .
Today in MBA curriculum , managerial economic is covering the economic analysis skills but the majority focus is on microeconomics topics and on small parts concentrates on macro topic in economic.

Business is an open system and macroeconomics nature is the environment role for any business activities today. With globalization variety changes happened in nature of business and any small effect on oil price may be effected the labor price in China. In the recent years the US economic problem causes some unfavorable results in world economy and most of countries , also multinational companies , and at least some small scale businesses was affected direct and indirect by US economy .

You can see also this book : Macroeconomics for MBA 's and Masters of Finance

Example of Macroeconomics skills for Managers :

Macroeconomics literacy and Managerial Decision Making

Macroeconomics literacy refers to the ability of an executive team to correctly read and interpret all of these many and varied macroeconomic signals . In an applied management context , the careful cultivation of such macroeconomics literacy in the MBA course can assist executive in three important areas (1) the proactive management of business cycle movements and tuning point to build competitive advantage;(2) the more timely and tactical application of various instruments to hedge macroeconomic risks associated with change in exchange rates, interest rate ,stock and bond prices ,commodity prices ,geo-political risk , and oil price shocks ; and (3) crafting appropriate strategic and tactical response to random macroeconomic shock associated with phenomena ranging from war terrorism to currency crises , drought , and disease.

Business cycle and Managerial Decision Making

Today , as a result of some efforts in macroeconomics studies and research , there is a growing consensus that at least some economic indicators can be used alone or in combination to forecast the business cycle in timely and accurate enough manner as to be relevant in a business planning context.
From a managerial perspective , the recent research is of great importance because so many management decisions are business cycle-sensitive . Business cycle-sensitive advertising , marketing , and pricing provide some richest and most textured of strategic and tactical .The manager may also want to counter-cyclically trim inventories and begin to prepare for layoffs well before a recession actually hits- even as rivals continue to hire sooner than competitors in anticipation of upturn. At this time of cycle , a company may want to select higher quality employees from the relatively larger pool of unemployed labor while looking for in lower labor cost.

Macroeconomically Risk and Managerial Decision Making

One of important role that macroeconomics can assist executive decision making involve the timely hedging of specific macroeconomics risks associated with the movement in such key financial variables as example rates , interest rates , stock prices , and commodity prices.
Consider , for example , exchange rate risk . This highly significant , particularly for companies that produce , market ,or buy their products in foreign exchange . For better understand the nature of such risk , an MBA student must learn about the complex inter-relationships between budget deficits and trade deficits , the impact of discretionary policies of central bank across the globe on trade and capital flow ,… etc. MBA student must understand not just how a central bank like U.S Federal Reserve seeks to control short run interest rates using tools like open market operation . Also the effects of long run and relationship with inflation is important on this way .
MBA as managers , students or CEO need to learn how, when ,why apply various tools of macroeconomics and it is possible with understanding of the globe macroeconomic environment and essential.As discussion on macroeconomics , it is clear that macroeconomics has several tools for analysis and large hidden potential to be useful for management , and management context decision making . These tools provide great benefits to MBA students that are seeking to improve their decision making skills.

You can see also this book : Macroeconomics for MBA 's and Masters of Finance

This blog is a summary of my research and my article in college about the : USE STUDY OF MACROECONOMIC IN MBA.

For more information see:

Key Indicators of Macroeconomics or Important Macroeconomics Factors