The effective prayer of a righteous man can accomplish much.
James 5: 16
"The first man gets the oyster, the second man gets the shell".
Many of the largest and most successful corporations know that among business and financial advisors, economists are uniquely equipped with the essential skills to provide them with an information advantage.
Even though almost every major corporation has their own economists on staff, the role of a managerial economist or business economist continues to remain a mystery to many that must ask:
"What can a managerial economist do for me and my business that I can't do myself or that my bankers, stockbroker, attorneys, CPAs, MBAs, and other advisors can’t?"
What makes managerial economists unique?
What can Aldersgate add to my team of advisors?
How can Aldersgate maximize my prosperity?
The revolutionary advances in technology and communications has made the modern market economy the most complex and efficient information network that has ever existed. Economists are the social scientists who study the system, model it, and understand how it functions.
Managerial economists, are social scientists like sociologists and psychologists, and as such are specifically trained in scientific methods to critically evaluate and interpret information and data; and then to predict the most likely resulting human behavior. Managerial economists are specifically trained to consider how such factors as technology; personal motivations and personality types affect financial, investment, production and purchasing decisions. In order to help our individual and corporate clients adapt to, and prosper in, a rapidly changing technology / information driven economy, we must be able to employ various techniques, skills, and strategies.
As managerial economist, we apply economic theory, policy and analysis to the daily "real world" / "bottom line" practices of individual investors, businesses, organizations, and institutions. We help with investment, resource allocation and other managerial decisions, in comparing and selecting among economic alternatives, to maximize the value of the firm or investment.
We can prepare economic forecasts of the rate of technology utilization, GNP, personal income, interest rates, exchange rates, inflation, employment, and whatever other variables may affect a particular company and guide the planning and budgeting decisions. We are also frequently called upon to apply our economic training to solve specific problems within the firm’s internal operations, such as capitalization, decision support services, information systems, determining prices, inventory levels and advertising outlays.
Managerial economics incorporates more than macro and microeconomic theory. It also requires the thorough understanding, application, and integration of those practices, principles, and techniques from other areas of accounting, finance, marketing, production, legal, governmental, personnel and other functions and disciplines associated with the profitability of the firm.
We generally serve in an advisory capacity to individual investors, to corporate CEOs, business owners, and professionals. Our duties are not set, but depend upon the unique needs of our client company or individual. We are the problem solvers. More importantly, we strive to prevent the problems in the first place. Not only must the managerial economist be proficient in all aspects business and finance, but we must have the insight as to how they interact and anticipate any changes in human / consumer behavior.
Economists perform a wide variety of functions. We are concerned with the design, promotion, price and distribution of a products or services. We provide information necessary to identify and define marketing opportunities: generate, refine and evaluate marketing actions, and monitor marketing performance. We design and develop surveys and evaluate data. We make recommendations based upon findings and suggest a course of action. We provide our clients with information to make decisions of the promotion, distribution, design and pricing of company products or services or to determine the advisability of adding new lines of merchandise, opening new branches or diversifying the company’s operations.
Managerial economists are particularly proficient in understanding and interpreting financial matters like financial managers, financial analysts, investment advisors, accountants, auditors, underwriters, actuaries, credit analysts, loan and budget officers. We are also involved in social research including the planning and implementation and analysis of surveys to determine people’s needs and wants, and as well as consumer preferences.
Because of our overall knowledge of a company’s inner workings and the economic factors affecting a company, managerial economists are frequently asked to serve on important company committees. Whether to a committee or privately to the CEO, our presentation of data, analysis of issues and problems, suggested alternatives and recommendations of plans of actions, can have an important influence on key investment and business decisions. Consequently, we must exercise prudent judgment supported by ample accurate data and information, as well as a thorough analysis thereof.
Therefore, economists are trained to devise and develop methods and procedures for obtaining the data they need. More importantly, unlike most other consultants, CPAs, attorneys, and advisors; economists are schooled in scientific methods. As such, they are uniquely qualified to critically review, analyze, and evaluate date collected by others.
It is this ability and training to determine and identify the accuracy and validity of information that sets the managerial economist apart from other "advisers" and makes him an especially critical resource in a volatile economy.