Case Study Me
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Transcript of Case Study Me
SRI VENKATESWARA COLLEGE OF ENGINEERING AND TECHNOLOGY
(AUTONOMOUS)
MBA DEPARTMENT
CASE STUDY ON
MANAGERIAL ECONOMOICSDt: 26-11-2012
This case illustrates and integrates the scope of managerial
economics in real world. It explains how EICHER MOTORS tries to solve the
three basic questions faced by the company when introducing a new product. In
the primary stage, customer preferences are captured to decide what to produce.
They are translated into product design through “quality function deployment”.
The later stages of ‘house of quality’ take care of production and cost decisions,
thereby taking decision of how to produce. The development of a product for a
particular section of society considers the question for whom to produce. For
instance, manufacture of special vehicles for poultry segment and buses for
school children.
Appropriate business decision making with the help of economic
tools has gained recognition in view of complex business environment. Since
the macroeconomic environment is dynamic, it changes over time; managerial
decisions have to be reviewed constantly. In this context, concepts of consumer
behaviour, demand elasticity, demand forecasting, production and cost analysis,
market stricture analysis and investment planning help in making prudent
decisions.
Question:
What is the role of managerial economics in decision making?