Role of Managerial Economist:
Managerial Economist plays a vital role in the decision-making process of an organization. He/she is responsible for assisting the top management of an organization to make efficient business decisions. A managerial economist is also called business economist or economic advisor. He/she makes use of a number of complicated and specialized techniques required in the process of business decision making. Apart from this, he/she is also accountable for analyzing the internal and external factors that affect the business environment of an organization. The internal factors are those factors that are under the control of an organization. These factors include formulation of price policy, expansion or contraction of business, level of efficiency, and determination of wage policy.On the other hand, external factors include economic policies of the government, fluctuations in economic conditions, and labor laws. All these internal and external factors directly or indirectly influence the performance of an organization.
Managerial-Economist Roles :
- Sales forecasting.
- Investment appraisal
- Market research.
- Economic analysis of competing companies.
- Pricing problems of industry.
- Capital projects.
- Production scheduling.
- Security management analysis.
- Advice on trade.
- Advice on foreign exchange management.
- Economic analysis of agriculture.
- Environmental forecasting.
Thus the managerial economist has to perform a lot of functions.Of these, Marketing function is the most important. The managerial economist has to make market research and sales forecast. for this he may have to make a detailed statistical analysis also. A firm, while taking decision,has to take into consideration so many factors. Though a firm has the freedom to take decision on pricing,investment,employment and remuneration of labour etc.,
The government ‘s economic policies and regulations are to be considered in taking business decisions.The tax rate,important restrictions etc.are all subjects of the managerial economist’s study. He also studies the impact of Reserve Bank’s decision. He also make a study of the implications of the Five-year plan and gives necessary advise to the management.