The Role of Micro and Macro Factors In Business Decision Making Essay

The Role of Micro and Macro Factors In Business Decision Making - Essay Example This paper illustrates that economics enables firm’s in making the decision related to the production such as infrastructure and input cost, number of units, number of labor and their wages, and utility expenses, etc. are in a way to meet the market demand profitably. Additionally, the pricing decisions with profit margins are conducted on the basis of the competitive landscape of the business. All these plays defining a role in the future revenue stream for the business. Also, economics enables firm’s in making the decision-related to the production such as infrastructure and input cost, number of units, number of labor and their wages, and utility expenses, etc. are in a way to meet the market demand profitably. Additionally, the pricing decisions with profit margins are conducted on the basis of the competitive landscape of the business. All these are critical to maintaining the economic objective of achieving profitability for the firm. In addition to this, a manufa cturing concern like other businesses is also required to understand the macroeconomic factors. For example, government policies in the UK are attractive for local and international wind energy producers. These investments have the role in generating employment. The unemployment level and labor policy of the government will determine the cost of labor for the business (both skilled and unskilled). It also has an impact in determining the future demand for the business product. UK government has also lowered taxation to attract investors in the energy sector. In addition to these fiscal and monetary policy implications, GDP of the economy that determines the purchasing power of the people, etc. Also, the international trade regulations and policies of the country are also important to understand in case the input is imported from abroad or is to be exported to other countries. Hence, business economic play a guiding role in surviving and running and business successfully.