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Meaning of Managerial Economist
Managerial economist is a person who manages business efficiently using various economic theories and methodologies. He supports the management team in better decision making through his analytical skills and specialized techniques.
A Managerial Economist is also termed as an economic advisor or business economist. He is responsible for analyzing various internal and external environmental forces that influence the functioning of business organizations. Managerial economist makes several successful business forecasts and updates the management team regarding the economic trends from time to time.
Managerial Economist always remains in touch with all the latest economic developments and environmental changes for informing the management. He has an efficient role in earning reasonable profits on invested capital as it supplies all relevant information which helps in making proper plans and strategies. Managerial economist has three important roles in every business organization: Demand analysis and forecasting, capital management and profit management.
Role and Responsibilities of Managerial Economist
Studies Business Environment
The managerial economist is responsible for analyzing the environment in which business operates. Proper study of all external factors that affect the functioning of organization is must for proper functioning. He studies various factors like growth of national income, competition level, price trends, phase of the business cycle and economy and updates the management regarding it from time to time.
Analyses Operations of Business
He analyses the internal operation of business and helps management in making better decisions in regard to internal workings. Managerial economist through his analytical and forecasting skills provides advice to managers for formulating policies regarding internal operations of the business.
Demand Forecasting and Estimation
Proper estimation and forecasting of future trends helps the business in achieving desired profitability and growth. Managerial economist through proper study of all internal and external forces makes successful forecasting of future uncertainties or trends.
Production Planning
Managerial economist is responsible for scheduling all production activities of business. He evaluates the capital budgets of organizations and accordingly helps in deciding timing and locating of various actions.
Economic Intelligence
He provides economic intelligence services by communicating all economic information to management. Managerial economist keeps management always updated of all prevailing economic trends so that they can confidently talk in seminars and conferences.
Performing Investment Analysis
A managerial economist analyzes various investment avenues and chooses the most appropriate one. He studies and discovers new possible fields of business for earning better returns.
Focuses on Earning Reasonable Profit
He assists management in earning a reasonable rate of profit on capital employed in the business. Managerial economist monitors activities of organizations to check whether all operations are running efficiently as per the plans and policies.
Maintaining Better Relations
A managerial economist maintains better relations with all internal and external individuals connected with the business. It is his duty to develop a peaceful and cooperative environment within the organization and aims to reduce any opposition taking place.