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Business economics is a field in applied economics which uses economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital and product markets.A professional focus of the journal Business Economics has been expressed as providing "practical information for people who apply economics in their jobs."
Business economics is an integral part of traditional economics and is an extension of economic concepts to the real business situations. It is an applied science in the sense of a tool of managerial decision-making and forward planning by management. In other words, business economics is concerned with the application of economic theory to business management. Business economics is based on microeconomics in two categories: positive and normative.
Business economics focuses on the economic issues and problems related to business organization, management, and strategy. Issues and problems include: an explanation of why corporate firms emerge and exist; why they expand: horizontally, vertically and spacially; the role of entrepreneurs and entrepreneurship; the significance of organizational structure; the relationship of firms with employees, providers of capital, customers, and government; and interactions between firms and the business environment.
The term 'business economics' is used in a variety of ways. Sometimes it is used as synonymously with industrial economics/industrial organisation, managerial economics, and economics for business. Still, there may be substantial differences in the usage of 'economics for business' and 'managerial economics' with the latter used more narrowly. One view of the distinctions between these would be that business economics is wider in its scope than industrial economics in that it would be concerned not only with "industry" but also businesses in the service sector. Economics for business looks at the major principles of economics but focuses on applying these economic principles to the real world of business.Managerial economics is the application of economic methods in the managerial decision-making process.
Many universities offer courses in business economics and offer a range of interpretations as to the meaning of the word.The Bachelor of Business Economics (BBE) Program at University of Delhi is designed to meet the growing need for an analytical and quantitative approach to problem solving in the changing corporate world by the application of the latest techniques evolved in the fields of economics and business. The Autonomous University of Barcelona (UAB), the Universidad Pública de Navarra (UPNa) and the University of the Balearic Islands (UIB) developed an official Master of Science in Management, Organization and Business Economics focused on management and business topics to train professionals in the study of organizations, on a conceptual and quantitative basis. To achieve this, advanced analysis tools are used from the fields of Neoclassical economics, New institutional economics, Statistics, Econometrics and Operations research. This focus is complemented with contributing ideas and theories to develop the necessary instruments to facilitate the management of sophisticated and complex organizations.
The program at Harvard University uses economic methods to analyze practical aspects of business, including business administration, management, and related fields of business economics.. The Universidad del Desarrollo, in Chile follows on Harvard University definition, adding entrepreurnship as a field of business. The University of Miami defines business economics as involving the study of how we use our resources for the production, distribution, and consumption of goods and services. This requires business economists to analyze social institutions, banks, the stock market, the government and their relationships with labor negotiations, taxes, international trade, and urban and environmental issues.
Courses at the University of Manchester interpret business economics to be concerned with the economic analysis of how businesses contribute to welfare of society rather than on the welfare of an individual or a business. This is done via an examination of the relationship between ownership, control and firm objectives; theories of the growth of the firm; the behavioural theory of the firm; theories of entrepreneurship; the factors that influence the structure, conduct and performance of business at the industry level.
Italian universities borrow their concept of business economics from the tradition of Gino Zappa, for example a standard courseat the Politecnico di Milano involves studying corporate governance, accounting, investment analysis, budgeting and business strategy.
La Trobe University of Melbourne, Australia associates business economics with the process of demand, supply and equilibrium coordinating the behaviour of individuals and businesses in the market. Also, business economics extends to government policy, economic variables and international factors which influence business and competition.
Finance is the study of money and how it is used. Specifically, it deals with the questions of how an individual, company or government acquires the money needed - called capital in the company context - and how they then spend or invest that money.
Microeconomics is a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
Management science (MS) is the broad interdisciplinary study of problem solving and decision making in human organizations, with strong links to management, economics, business, engineering, management consulting, and other fields. It uses various scientific research-based principles, strategies, and analytical methods including mathematical modeling, statistics and numerical algorithms to improve an organization's ability to enact rational and accurate management decisions by arriving at optimal or near optimal solutions to complex decision problems. Management science helps businesses to achieve goals using various scientific methods.
Social science is the branch of science devoted to the study of human societies and the relationships among individuals within those societies. The term was formerly used to refer to the field of sociology, the original "science of society", established in the 19th century. In addition to sociology, it now encompasses a wide array of academic disciplines, including anthropology, archaeology, economics, human geography, linguistics, management science, media studies, musicology, political science, psychology, welfare and nursing studies and social history.
Political economy is the study of production and trade and their relations with law, custom and government; and with the distribution of national income and wealth. As a discipline, political economy originated in moral philosophy, in the 18th century, to explore the administration of states' wealth, with "political" signifying the Greek word polity and "economy" signifying the Greek word "okonomie". The earliest works of political economy are usually attributed to the British scholars Adam Smith, Thomas Malthus, and David Ricardo, although they were preceded by the work of the French physiocrats, such as François Quesnay (1694–1774) and Anne-Robert-Jacques Turgot (1727–1781).
In economics, industrial organization or industrial economy is a field that builds on the theory of the firm by examining the structure of firms and markets. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. It analyzes determinants of firm and market organization and behavior as between competition and monopoly, including from government actions.
Economic geography is the subfield of human geography which studies economic activity. It can also be considered a subfield or method in economics.
Socioeconomics is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern societies progress, stagnate, or regress because of their local or regional economy, or the global economy. Societies are divided into 3 groups: social, cultural and economic. It also refers to the ways that social and economic factors influence the environment.
Managerial economics deals with the application of the economic concepts, theories, tools, and methodologies to solve practical problems in a business. In other words, managerial economics is the combination of economics theory and managerial theory. It helps the manager in decision-making and acts as a link between practice and theory. It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units.
Economic sociology is the study of the social cause and effect of various economic phenomena. The field can be broadly divided into a classical period and a contemporary one, known as "New economic sociology".
The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour, structure, and relationship to the market.
Personnel economics has been defined as "the application of economic and mathematical approaches and econometric and statistical methods to traditional questions in human resources management". It is an area of applied micro labor economics, but there are a few key distinctions. One distinction, not always clearcut, is that studies in personnel economics deal with the personnel management within firms, and thus internal labor markets, while those in labor economics deal with labor markets as such, whether external or internal. In addition, personnel economics deals with issues related to both managerial-supervisory and non-supervisory workers.
Business education is a branch of education that involves teaching the skills and operations of the business industry. This field of education occurs at multiple levels, including secondary and higher education institutes. Education in business has many forms, mainly occurring within a classroom of a school. Internships are also another way to receive this type of education. A business education has many components, as there are many different areas of the business industry as a whole. An education in business varies greatly in its curriculum and popularity around the world. Career development is often an integral part of an education in business.
Jean Tirole is a French professor of economics. He focuses on industrial organization, game theory, banking and finance, and economics and psychology. In 2014 he was awarded the Nobel Memorial Prize in Economic Sciences for his analysis of market power and regulation.
The following outline is provided as an overview of and topical guide to management:
Public economics is the study of government policy through the lens of economic efficiency and equity. Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social welfare.
Leadership studies is a multidisciplinary academic field of study that focuses on leadership in organizational contexts and in human life. Leadership studies has origins in the social sciences, in humanities, as well as in professional and applied fields of study. The field of leadership studies is closely linked to the field of organizational studies.
The following outline is provided as an overview of and topical guide to social science:
Bachelor of Management Studies or BMS is an undergraduate program for management studies offered by many universities throughout the world. The course allows you to obtain the knowledge and skills needed to assume management positions in a wide range of organizations. Management studies programmes provide students with a solid foundation in organizational behavior and human resource management while electives in labor-management relations, negotiation, conflict resolution, compensation systems and organizational development allow students to develop deeper knowledge in specific areas of interest. In addition to business management course, it will equip you to understand how organizations work, how they are managed, and how they interact with object oriented programming using c++ and data structures, national and international environments.
Xavier Vives is a Spanish economist regarded as one of the main figures in the field of industrial organization and, more broadly, microeconomics. He is currently Chaired Professor of Regulation, Competition and Public Policies, and academic director of the Public-Private Sector Research Center at IESE Business School in Barcelona.