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Explain the aspects of operational or internal issues

Explain the aspects of operational or internal issues.

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The following aspects may consider being fall under internal issues.

1. Forecasting and Demand analysis: The demands for the firm’s product would vary in response to change into price, income of consumer and his taste that are the determinants of demand. A determinants study of the demand is essential for forecasting future demand of the product.

2. Cost analysis: Evaluation of cost is an essential part of managerial problems. All the factors causing variation of cost should be found out and allowed for this management to arrive at cost estimates. It will helps for more effectual planning and sound pricing practices.

3. Pricing Decisions: The firms intend to profit that depends upon the correctness of pricing decisions. The pricing is a significant area of managerial economics. Theories about price fixation help the firm to handle the price fixation problems.

4. Profit Analysis: All business firms working for profit and this is a significant measure of success. If firms working under conditions of uncertainty. Profit planning become essential under the conditions of uncertainty.

5. Capital budgeting: The business managers should take very significant decisions relating to the firm’s capital investment. The manager has to compute correctly the profitability of investment and to properly assign the capital. Success of the firm depends on the appropriate analysis of capital project and selecting the best one.

6. Supply and Production analysis: Analysis of production is narrower in scope than cost analysis.
Production analysis is proceeds within physical terms whereas cost analysis proceeds into monitory term. Significant aspects of supply analysis are: curves and functions, supply schedule and law of supply, factors influencing supply and elasticity of supply …

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