Discussion- Differences Between Value And Returns
Overview
Economic Practices for Managers
This course addresses the fundamental economic principles of decision making, including opportunity costs, factors of production, and competitive and comparative advantage. Risk and uncertainty are also analyzed. In addition, students would apply sustainable business principles in a rapidly changing economic and social environment. The course approaches these topics from the perspective of a practicing manager.
Module Readings
Complete the following readings early in the module:
• Module overview
• From your course textbook, Managerial economics: Economic tools for today's decision makers, read the following chapters:
o Introduction
o The Firm and Its Goals
o Supply and Demand
o Demand Elasticity
Assigned Reading:
• From the Argosy University online library resources, read:
o Cascio, W. F. (2006). The economic impact of employee behaviors on organizational performance. California Management Review, 48(4), 41-59. (EBSCO AN: 22004552)
o Lawler, E. E., III, & Toole, E. (Eds.). America at work: Choices and challenges. Gordonsville, VA: Palgrave Macmillan.
Module In Brief: introduces the basic economic theories and principles that drive a company's day-to-day business decisions. You will also be familiarized with the basic economic problem of a business. This module also describes the concepts of demand, supply, and elasticity and how their relationship helps predict market outcomes. You will learn how demand and supply determine the prices of all the goods and services in a market-driven economy.
Module Overview:
Consider the last major sporting event that you watched on television. What did you give up to watch this show-the option of dining out with your friends or spending time with your family? Let us extend this example to other stakeholders. Think of how competing teams would have traveled to the event. Probably, they chartered a flight. What was their gain? How did the airline decide whether or not to accept the charter?
We all make economic decisions every day of our lives. Economics is the science of making effective choices or decisions by examining the available alternatives
This module introduces the basic concepts of economics that will help you analyze and evaluate various alternatives and make effective day-to-day business decisions. To begin with, you will learn about the basic economic problem that a society faces. You will then apply this knowledge to analyze the problem and make decisions in the context of your business.
Basic Economic Problem
The basic economic problem in any society is how to allocate resources among individuals to meet their demands for what they want to consume. While the individuals' needs are unlimited, the resources available to a society are limited. To address this problem, societies take into account the production, the sale, and the consumption of goods and services, and compare alternative ways of using the limited resources. Each society, therefore, must find answers to these three basic questions to satisfactorily run the economy:
• What goods and services to produce?
• How to produce them?
• For whom to produce them?
In the context of your business, these questions will help you analyze the operations within your company from an economic perspective and make decisions on how to make the best use of your company's scarce resources. It will help you decide what goods and services should be produced and which ones you must forgo, which needs should be satisfied, and how much of the limited resources will be used to satisfy those needs.
Assignment: Discussion-Differences between Value and Returns
Evaluating the benefit an opportunity can provide is complex. When measuring an economic benefit, you must look at the real return, the nominal return, and the overall value. In many cases, a project might generate a negative return in the short term but may be of value in the long term. You may take on a project for its business, knowing that the project is a losing proposition but will compensate for this loss by bringing in a new project later that will generate a positive return, or future value. This assignment will illustrate this concept. Firms need to distinguish between value creation and the returns they obtain from their investments.
Tasks:
Locate an article from the Internet or the Argosy University online library resources that deals with firms distinguishing between value creation and the returns they obtain from their investments. You can consult sources such as the Wall Street Journal, Financial Times, Bloomberg Markets, the Economist, US News and World Report, and other publications for conducting this research.
On the basis of the selected article, address the following questions:
• What are some of the strategies that firms engage in to create value?
• What is the difference between adding value in the value chain and creating returns for shareholders?
• Why does adding value to the firm and creating returns for shareholders in the short run and long run matter?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.