Business for economics
- Created by: Soph
- Created on: 06-10-14 16:58
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- 1-Economics for Business
- Classifying Industries
- Identify areas of growth/decline, analyse trends, identify areas of the economy with specific needs e.g. transport, understand and predict the behaviour of firms in direct competition.
- Supply side- less susceptible to change/ more simply calculated
- Standard Industrial Classification
- Formal system which firms are grouped into industries
- Promotes collection by various Gvnt departments/non Gvnt agencies of a uniform and comparable body of data on industry. Reflects changes in UK industrial structure
- Crucial for effective monitoring of business in the EU's internal market.
- Enables addressing of wider issues- Industrial concentration
- Structure-conduct-perfomance
- Performance affected by the market structure- SCP paradigm
- Internal structure- agressiveness in the market, willing to innovate etc.
- Information-the more aware, the more likely to succeed
- Competence of managers, quality of workforce
- Systems: information systems, motivational systems, distributional systems, financial systems etc
- Classifying Industries
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