Economics strategy is a unique perspective on the topic of economics, serving to address the field of economics through the guise of strategy, looking at where things have stood in the past and where things stand in the present in order to review the possible outcomes for the future. Economics strategy is the latest way of viewing business strategy, and through a combination of economic theories and strategic planning, a business is able to work to determine the best way that they should move forward.
Economics theory looks at commercial activities (like the production of goods and the consumption of goods), while the strategic aspect looks at the different long-term goals of a business or corporation and what it hopes to accomplish in the future. Through the combination of these two aspects, economics theory and strategy, a business is able to get a more realistic look at what their future may look like and how they may work to gear the business in the direction that it wants to go.
Use your promo and get a custom paper on
"Economics Strategy".
A business will first need to look at the strategies they want to use – where they would like their company to go. The business will need to address what their short-term and long-term goals are for the advancement of the business and look at their basic objectives, first working to make sure that the goals they have set are in line with the advancement of the company’s objectives, and then second, working to make sure that the goals themselves are a part of a reasonable timeline of activities for the business itself – for example, a goal of overseas expansion would not be considered a short term goal, it would require months of planning and research in order to see if that was feasible for the business itself, making it a long term goal. All timelines for the different strategies will need to be reviewed to ensure that they are realistic goals that the business may accomplish.
Next, the business will need to look at the economic theory behind these goals. Is it feasible from an economic standpoint, through the use of a cost benefit analysis for example, that the company work to accomplish the goals that they have set, or would they not be beneficial to the company at large? A company who manufactures sodas would consider branching out into energy drinks to be a more feasible option than branching out into the creation of beach towels, for example.
Through a careful review of the different strategies of the business itself, the goals and the objectives of the business, it will first be possible to see whether or not the company has realistic expectations; once those expectations are determined to be realistic, their next goal will be to address the economic theory behind those goals in order to see if the goals will ultimately end up being beneficial for the company itself. A review of the market that the business is in will need to be undertaken in order to determine whether or not these realistic goals, in terms of timelines, are economically feasible, or if they will cost the business more than they would potentially earn.
An understanding of the way that economics works, and an understanding of the way that strategy is applied to the business field will serve to allow the individual to combine these two aspects, working to ensure the success of the business at hand, so long as the two types of analysis are appropriately applied in conjunction with each other. Economics strategy does not guarantee that a business will succeed, but rather works to confirm that the business has a better chance of success than it would if the principles were not properly applied.
