Question

(Need 700 werds)

Quesiton 2: Apply business economic analysis techniques in solving industrial organization issues regarding to prices, products and polices.

NOTE: Plagirism is Prohibited.

Answer 1

A considerable lot of the associations go over with business choices whether to dispatch an item or not, change the way toward doing the business tasks or not and other related choices. Such decisions can be taken with the help of economic analysis technique. One such economic analysis technique is Cost-Benefit Analysis.

Cost-Benefit Analysis

Assume an organization is intending to execute ERP framework in the association which would make the whole procedure computerized and interface the different divisions of the association.. Implementation of ERP system incurs a total cost of $150000. Such an implementation would eliminate the labor force whose annual salary is $500000.

It would also bring out certain additional benefits to the organization in the form of avoiding Out of stock condition as the orders for refilling of the orders would be placed automatically once the stock level reaches to a threshold limit. Therefore, a firm needs to do watchful examination of the advantages accomplished as extra income earned and decrease in cost acquired and the cost engaged with the usage procedure. In the wake of doing the examination, if the advantages accomplished are more than the cost brought about, the procedure can be actualized.