Managerial economist helps the management by using his analytical skills and highly developed techniques in solving complex issues of successful decision-making and future advanced planning, In both for Profit and Non-Profit Organization, There are therefore very critical in an organization just like many other Functions Eg Marketing Finance Human Resources etc
The Major roles of managerial economist in atypical organization would be:
To Study the economic patterns at macro-level and analyze its significance to the specific firm he is working in. Macroeconomics focuses on the overall Economy For instance Inflation, Unemployment, Fiscal and Monetary
To consistently examine the probabilities of transforming an uncertain and ever-changing economic environment into profitable business avenues.
To assists the business planning process of a firm. Since he is in a better position to Predict the future based on happenings of the past.
To carry out a cost-benefit analysis. Mostly when faced with to Scenarios whose outcomes are Uncertain, and recommend the best among conflicting situations
To assists the management in the decisions pertaining to internal functioning of a firm such as changes in price, investment plans, type of goods /services to be produced, inputs to be used, techniques of production to be employed, expansion/ contraction of firm, allocation of capital, location of new plants, quantity of output to be produced, replacement of plant equipment, sales forecasting, inventory forecasting, etc.
To analyze changes in macro- economic indicators such as national income, population, business cycles, and their possible effect on the firm’s functioning, and how to mitigate the same.
To advise management on public relations, foreign exchange, and trade. He guides the firm on the likely impact of changes in monetary and fiscal policy on the firm’s functioning.
To make an economic analysis of the firms in competition. He has to collect economic data and examine all crucial information about the environment in which the firm operates.
To conduct a detailed research on industrial market. It’s important to conduct regular industry analyses. An industry analysis is meant to help review various market and financial factors in your industry that affect the business, including evaluating the business competitors.
A managerial economist has to conduct an elaborate statistical analysis in most cases, and must be vigilant and must have ability to cope up with the pressures