Behavioral Economics Essay

originationbehavioural Economics is an extremely strategic field of psychology it seeks to expand the veritable tools that researchers mapping in sparings and pay to introduce parvenu models of human fashion that argon adequately founded in psychological research. The Behavior Economics is crucial in handicraft decision making mold. The fellowship in bloodline and m singletary Literacy is precise serious for their direct application to logical argument sector and Consulting Psychology. Understanding Financial Management which includes earnings & axerophthol loss, cash flow, balance sheets, ratios, ROI, functional capital, budgeting, financial intend, and corporal finance and Business Management that includes business scheme, strategic foodstuff instruction, micro-economic analysis, sustainable competitive advan strike oute, strategic positioning, diversification, acquisitions, mergers, and technology management, go forth eachow the consultant to economic a id businesses growing their profits and remedy their bon tons culture.Business Management and dodgingBusiness Strategy is a management plan of action that an formation regularize in place in frame to touch a mappingicular closing or a set of conclusions and objectives, this strategy can help the governance notice itself from its competitors. In guild for a attach to to antitheticaliate itself from their competitors, they need to successfully lend oneself a strategy that onlyow for visualize the grocery that the business allow compete, the enthronement needed, the strategies required to compete in that ad hoc market and the strategic resources or competencies that underline the strategy by providing a distinguished sustainable competitive advantage (SCA) (Aaker, 2001).Budgeting and Financial training in that location are some critical directorial tools that assist in managing a successful business. Budgeting is the most parking area and widely used tool for planning and control it is essentially a guideline that focuses on spending, it can breaks down all the business expenses in different categories, per ex antiophthalmic factorle, utilities, payroll, taxes, materials, equipment, etc, to a fault all the income that the business expect to percolate in a certain level of time, this period of time is usually yearly, periodical or sometimes weekly.Once the manager has all the estimated income and expenses for that period of time, the budget result start to take shape. The budget mark is to subtract all the anticipate expenses from the expected income for the same period and still cast a positive cash balance. A budget should not be a rigid and fixed tool from which you whitethorn never deviate (Wood, 2012). The Financial Planning focuses on allocating resources economicly, particularizedally achieving long roll out goals. In summary, while the budget focuses on the daily functioning of the organization, the future depends greatly on the financial planning which in turn relies on budgeting in order to be effective. corporal FinanceThe Corporate Finance addresses how organizations face their financial obligation, to intelligently invest their resources, hand the correct combination of financing to fund their investments and return a profit to the investors hence achieving value maximization. When a company invests in a establish or multiple tramps, this project leave generate expenses and will create gross for the company, exclusively what is a project? roam is any activity that generates a serial publication of cash flows for the organization. The company uses the revenue in excess of expenses to fund new projects, improve existing projects or pay its investors (Spiegel, 2000). Per example, applying a low-cost strategy, businesses can remove all frills and extras from its products and emoluments (Aaker, 2001), making the organization much competitive and profitable.Financial ratiosThe Financ ial Ratios are practical indicators of a companys financial and executing situation. The most definitive indicator of a business performance is profits. Profits provide the basis for the internally or externally generated capital that the organization needs to follow its growth strategies, to counter alter out of dated plants and equipments, and to absorb market risk (Aaker, 2001). But how can we m the profitability of an organization? The most basic and important tool to mea true profitability is the Return on Assets, which is calculated by dividing the organizations profits by the assets involved (Aaker, 2001). The ROI measures how much profit the organization can produce with the capital that is purchasable to them (Gitman, 2009). The companys goal is to annex the ROI, because higher the ROI, the better. Thats why the ROA is so important for managers, investors and other business that may sell to this company.strategic MarketingThe Strategic Marketing includes creating a marketing plan that describes in detail the marketing mix, segmentation, and stigmatisation decisions. Branding is not just to accession gross revenue in one product, but to any product that is associated with that leaf blade. Thats why engagement matters it pulls customers back into the business and at the end of the day leads to repeat sales (Goodman, 2012). There are many different ways to use branding to backup man the organizations growth strategy, but for each specific growth strategy that are different approaches that can be used in order to achieve success (Aaker, 2001). sustainable Branding will alike increase customer loyalty where customers will disclose the quality of the product or service ein truth time that they see the brand (Aaker, 2001).Downsizing, Mergers & AcquisitionsMergers & Acquisitions essentially have the same features where the end result is one company where two existed. As declared by Shook & Roth (2010), during a merger and acquisition pr ocess, the organization will try to eliminate any lapping positions and this process can cause downsize, which is the process of restructuring a organization in a way that brings reduction of a part of the companys employees. If the M&A is successful, the new company will be more cost effective, efficient and mostly important, profitable (Holden, 2010). Mergers and acquisitions can also reduce significantly the competition and the bash for both companies (Holden, 2010).Consultants can be bring up facilitators of a smooth transition (during a M&A) by ensuring that there is sufficient understanding and buy-in at the leaders level near the costs of not addressing the culture issue early in the M&A process. There is plenty of empirical evidence suggesting the disaster rate of M&As due to issues with the unsuccessful involvement of a newly merged corporate culture. During an M&A, cultural replace often represents the soft side of the transaction. Everybody agrees a bout its importance but it seems too oftentimes to take a rear butt in the stated price tag synergies to be accomplished, as well as, how the new administrative track that needs to be quickly put in practice. mop upThe main goal of a business consultant is to provide a superior or/and skilful advice, but in order to do it, its vital that consultants understand the need to become an expert on their customers business and industry its also very important that consultants understand the need to commune in their clients language. excessively, in order to be effective, the consultant should be able to use motivation to trigger the organization members to change their behavior in order to achieve the organization goals (Fernandez-Huerga, 2008). As a consultant, my goal is to support the companys arrangement to resolve management, manufacturing, marketing, or other issues by providing* Focus and direction,* Expert analytical skills,* Objectivity, and* companionship and experience obtained from earlier assignmentsAlso as a professional I will help clients to define a projects goal and capacity, and together with ecesis prepare a comprehensive intent to document how the project will be implemented in order to achieve the desired objectives and steps along the way. Also I will make sure that the proposed changes are approved by the client before put in practice. other very important issue is to take hold confidentiality during and after the assignment. My ultimate goal as a consultant will be to develop a concept of a sustainable competitive advantage (SCA) and to snitch the SCAs of competitors (Aaker, 2001). Using the Game Strategy, which is a correction of strategic decision making, the consultant will be able to develop important insights concerning the strategy and how it should be addressed providing a rational choices for businesses dilemmas (Wood, 2012).ReferencesAaker, D. (2001). Developing business strategies (6th Ed.). new-sprung(prenominal) Yo rk, NY John Wiley and Sons, Inc. Berman, K. & Knight, J. (2008). Financial scholarship For HR Professionals. Boston, MA Harvard Business Press. Fernandez-Huerga, E. (Sep2008). The economic behavior of human beings The institutional/post-Keynesian model. diary of Economic Issues (Association for Evolutionary Economics, 42 (3), 709-726. Gitman, L. J. (2009). Principles of managerial finance. (12 ed.). Boston, MA Addison-Wesley. Goodman, G. F. (2012). Engagement marketing How petty(a) business wins in a socially connected world. Hoboken, NJ John Wiley & Sons. Holden , P. (2010). Economies of scale a quick translation Video file. Retrieved from YouTube website http//www.youtube.com/watch?v=AZshS761WsE Marks, M. (2003). Surviving MADness. HR Magazine, 48(6), 86. Marks, M., & Mirvis, P. H. (2012). Applying OD to Make Mergers and Acquisitions Work. OD Practitioner, 44(3), 5-12. Shook, L., & Roth, G. (2010). Downsizings, mergers, and acquisition Perspectives of human resourc es emergence practitioners. diary of European Industrial development 32(2), 135-153. Spiegel, M. (2000). Principles of corporate finance. Unpublished raw data, Yale groom of Management, Retrieved from http//som.yale.edu/spiegel/intro/sampread.pdf Teamtechnology.co.uk. (n.d.). Retrieved from http//www.teamtechnology.co.uk/changemanagement.html Wickramasignhe, V. & Karunaratne, C. (Mar2009). good deal management in mergers and acquisitions in Sri Lanka employee perception. Journal of Human Resource Management, 20 (3), 694-715. Wood, N. (2012). Behavioral Economics. PowerPoint slides. Retrieved from http//www.nancywood.org/Business/Behavior/Behavioral.pptx