Friday, April 16, 2010

Mathematical Economics Courses Review

Economics of Science and business that are exact sciences, to study and understand it required an analysis of quantitative and qualitative. Economic subjects are math courses that will provide the foundation to the students to be able to analyze quantitative problems in the economic field. Mathematical economics courses will provide the basis for students to be able to easily learn the subjects-subjects in the economic field. The discussion in this course is always preceded by pure mathematics, followed by the application of economics and business.

ECONOMIC MODEL


In an economy, relations between the variable-economic variables that one
others are very complex.
To facilitate the relationship between these variables, then the way
The best is to choose the many economic variables with problems
economy, then connecting it in such a way that shapes the relationship between
economic variables into a simple and relevant to the existing economic situation.
Penyederhanakan relationship between variables is called the economic model.
This economic model
can form a mathematical model. Economic models shaped mathematical model consists
from a number of variables, constants, coefficients, and / or parameters.


A. VARIABLES, constants, COEFFICIENTS, AND PARAMETERS


A variable is something whose value can change in a specific problem.
Variables are denoted by letters. Variable in the economic model consists of two types:
endogenous and exogenous variables. Endogenous variable is a variable value
the solution obtained from the model, while the exogenous variables is a
variable whose values obtained from outside the model, or has been determined based on data
existing. To distinguish the writing of the endogenous variables are not given the symbol subscript 0,
but for the exogenous variables given the symbol subscript 0.
Constant is a real number whose value does not change in a model
particular.
Constant coefficient multiplier is the number of variables.
Parameter is defined as a specific value in a specific problem and
probably will be another value at some other issues.

B. EQUATIONS AND INEQUALITIES


Mathematical models often include a statement or group of statements
(Statement) that includes various symbols of the variables and constants.
Statements in the form of mathematics is considered as the symbol (expresions).
If
a symbol has separated the parts that a positive sign and / or negative,
then these sections individually called tribes (terms). These factors are often presented
within each tribe. One factor is a multiplier of the multiplier-separated in a
product.
The equation is a statement that the two symbols are the same, whereas
inequality is a statement which stated that the two symbols are not
same. The equation is symbolized by the sign = (equal to), while inequality
symbolized by the sign <(smaller than) or> (greater than).

LOGARITHM


Logarithm of a number is the rank that must be imposed on (meet) numbers
principal logarithm to obtain these numbers.
xa = ma = x log m where x is a base and a is a promotion.
Logarithm base is the most commonly used because of practical considerations in the calculation
is the number 10.
The rules of logarithms
1. xlog x = 1
2. xlog 1 = 0
3. xlog xa = a
4. ma = a xlog xlog m
5. x xlog m = m

6. mn = xlog xlog xlog m + n

7. xlogm/n - xlog m - xlog n

8. xlog m. mlog x = 1
9. xlog m

FUNCTION


Implementation of the economy and business functions in one part of
very important to study, because economic models shaped
usually expressed by mathematical functions. Function in mathematics
declare a formal relationship between the two sets of data. If the set of data
is variable, then the function can be considered as relations between the two
variables.


A. FUNCTION


Function is a form of mathematical relationships which express the relationship
dependence (functional relationship) between the one variable with another variable.
A function is formed by several elements, namely: variable, coefficient, and constants.
Variable and the coefficient is always present in every function.
Variables are building blocks for functions which reflect or represent the factors
(Data), specific, denoted by Latin letters. Based on the position or
nature, in every function, there are two kinds of variables: independent variables
(Independent variable) and dependent variable (dependent variable). Independent variable
is a variable whose value does not depend on other variables, whereas variables
bound is a variable whose value depends on other variables.
The coefficient is a number or numbers related to and located in front of a
variable in a function.
Constants are numbers or number (sometimes) helped shape
a function but it stands alone as a number (not related to a variable
certain).


y = 5 + 0.8 x
y: dependent variable
x: independent variable
0.8: the coefficient of variable x
5: constant
While the notation of a general function is: y = f (x)

B. Cartesian Coordinate Systems


Each function can be presented graphically on a pair of field axis
cross (coordinate system). Images of a function can be generated by
calculate the coordinates of the points that satisfy the equation, and then
couples moving point to cross-axis system. In
describe a function of independent variables placed on the horizontal axis
(Abscissa) and the dependent variable on the vertical axis (ordinate).

The types of algebraic functions, among others:
1. Linear Function: y = a + bx
2. Quadratic function: y = ax2 + bx + c
3. Cubic function: y = ax3 + cx + d + bx2

C. System of linear equations


Completion of a system of linear equations is a set of values
that meet simultaneously (simultaneously) all the equations of the system
these. Or simply the settlement system of linear equations is
determine the intersection of two linear equations. There are three ways you can
used for the completion of a system of linear equations, namely: (1). Method
Substitution (2). Elimination Methods, and (3). The determinant method.
Substitution Method

Example: Find the value of variables x and y of the following two equations:

2x +3 y = 21 and x +4 y = 23!

Answer:
One of the first transformed into the equation y = ... , or x = ....

For example equation
x +4 y = 23 is converted to x = 23-4y.

Then substituted into the equation one.


x = 23-yr 4y = 21 2x + 3 Y
2 (23-4y) + 3 Y = 21
46 - 8y + 3 Y = 21
46 - 5Y = 21
25 = 5Y
y = 5


To get the value of x, substitute y = 5 into one equation.

y = 5 Þ 2x + 3y = 21

2x + 3(5) = 21

2x + 15 = 21

2x = 21 – 15

x = 6/2

x = 3

So the set of solutions that satisfy both these equations is
set of pairs (3.5)
Elimination Method
Example: Find the value of variables x and y of the following two equations:

3x-2y = 7 and 2x +4 y = 10!


Answer:

Suppose the variable to be eliminated is y
3x - 2y = 7 x 2 6x - 4y = 14
2x + 4y = 10 x 1 2x + 4y = 10 +
8x + 0 = 24
x = 3


To get the value of y, substitute x = 3 into one equation.

x = 3 Þ 3(3) - 2y = 7

-2y = 7 – 9

2y = 2

y = 1

So the set of solutions that satisfy both these equations is
set of pairs

Managing the New Work Environment

Management
Attainment of organizational goals in an effective way through planning, organizing, leading (actuating), and controlling organizational resources.

Management Functions:
1. Plan
• Determine the goals, determine the duties, determine the resources
2. Organizing
• Defining and classifying tasks, resource allocation, determining authorities
3. Leadership
• Influence → Motivation
4. Control
• Monitor activities, corrections, watching targets and objectives

Process Management
• Input (resources)
- Man, materials, money, machine, methods, information
• Process
- Planning: view the achievement of goals and ways
- Organizing: the fulfillment of a responsibility to pencapain goals
- Leadership: use leverage to motivate subordinates
- Control: monitor activity and implement corrective
• Output (performance)
- Achieving goals, products, services, efficiency, effectiveness

Performance
Organization's ability to maintain goals by using resources effectively and efficiently.
Organization
Directed social unity was formed with the purpose and with full consideration. Social entities represent two or more persons, directed by a goal (dirancacng to achieve a specific output).

Effectiveness → do the job properly
How far the organization has been determined to achieve the goals

Efficiency → do the job properly or in accordance with standards
Total resources used to achieve goals

Manager types, based on:
1. Vertical or hierarchical differences
a. Top Manager
A manager who is on top of the hierarchy and is responsible for the overall organization. Example: CEO, President, CEO.
b. Middle Manager
Managers working at the secondary level of organization and responsible for major business units and departments. Example: Director of Production, Marketing, Head of Division.
Project Manager
Managers who are responsible for a temporary job that involves the participation of people who come from different functions and organizational levels
c. First Line Manager or Manager Lower
A manager who is directly responsible for the production of goods and services. Example: Supervisor
2. Differences Horizontal (wide scope)
a. General Manager
Managers who are responsible for several departments that perform different functions or managers who are responsible for the division that stand alone (standalone).
b. Functional Manager
Managers responsible for departments that are running a single functional task and have employees with similar training and expertise. Example: Director of Production, Marketing, Head of Division.

Expertise or Skills Manager
1. Conceptual Skill
Cognitive ability (experience, integensia) to see the organization as a whole and the relationship between the parts. Means the ability to think strategically (taking a broad view and long-term).
2. Human Skill
The ability of managers to work with and through others
3. Technical Skill
Understanding and proficiency in performing certain tasks, including mastery of methods, techniques and equipment used.

Role Manager

Role: a set of expectations for the behavior of managers

Three categories Role Manager
1. The role of Information Manager
Describes activities to maintain and develop an information network

Category Role Activity

Information
a. Supervision
- Seek and receive information
- View a brief report
b. Wide spreader
- Forward the information to member organizations
c. Spokesman
- Delivering information to outside parties

2. Inter-Personal Role

Category Role Activity

Inter-Personal
a. As figure
- Activities ceremonial
b. Leader
- Direct and provide motovasi to subordinates. Such as: train,, guide and communicate
c. As liaison
- Maintain communication channels, either inside or outside the organization

3. Role of Decision Making: make choices and take action

Category Role Activity

Decision Making
a. Entrepreneurs
- Representing the improvement project
- Identify ideas
b. Problem solvers
- Take corrective action during the crisis
- Resolving conflicts among subordinates
- Adapting to the environment
c. Divisor resources
- Deciding who obtain resources
- Determining the schedule and budget
- Setting priorities
d. Negotiator
- Represent the department during the negotiations, employment contracts, sales, purchasing and budget.

Managers and the New Work Environment

Characteristics of a new work environment:
Focused on information and ideas rather than machines and physical activity.

Transition Into the New Work Environment
1. Characteristics of the New Workplace, Old Workplace
a. Physical Activity Resource Information
b. Structured Flexible Work
Localized Maya
c. The interdependence of workers Empowered

2. Power of the New Workplace, Old Workplace
a. Digital Mechanical Technology, e-business
b. Domestic Global Market
c. Homogeneous heterogeneous labor
d. Values as stability, efficiency changes, speed
e. Events Calm, predictable change Changed

3. MGT of New Workplace Competence, Workplace Lama
a. Scattered Authoritarian Leadership
b. Focus Gain Customers, employees
c. Individual work Cooperation (team)
d. Relationship Conflict, Collaboration complex
e. Design work efficiently Experimental Performance

Environment and Cultural Organization

Environmental organizations: The whole element or elements outside the boundaries of organizations that have the potential to affect the organization.

Environmental Organization:
1. External environment, has two layers
a. Environmental tasks:
- Customer: The person or organization in an environment that buy goods or services from the organization.
- Competitors: Others in the industry or the same types of businesses that provide goods or services that are the same.
- Supplier: The person or organization that provides raw materials to other parties who use it to produce a product.
- Labor Market: The people in the environment can be accepted to work for the organization.
b. General Environment:
- International: Part of the external environment, are events which bersal from other countries and opportunities for domestic companies.
- Technology: Scientific advances and technology in a particular industry, as well as society at large.
- Socio-Culture: Demographic characteristics, norms, customs and values of communities where the organization operates within.
- Economics: "health" general economy of a country or region where an organization operates.
- Politics and Law
2. Internal environment
- Employees
- Management
- Culture

Organization and Environment Relationships

Uncertainty → Response → Draft
↓ ↓
Alliance Adaptation Strategies
1. The role of cross-border
2. Partnerships between organizations
3. Joint venture

The external environment is a place of work of managers, which includes:
1. Corporate culture
2. Production technology
3. Organizational structure
4. Physical Facilities

Culture: the key values, beliefs, understanding and norms

Value - the basic values that characterize the organizational culture is manifested by:
Symbols, stories, heroes, slogans, ceremonies

Type - the type of culture:
1. Cultural Adaptability
Culture that emerged in an environment that demands quick response and high decision-making. Managers encourage the values - values that support the company's ability to detect, interpret and articulate the fast signals - signals from the environment to become the new responses and behaviors. Managers encourage and reward creativity, experimentation and risk decision making. Example: electronics company, cosmetics company
2. Cultural Achievement
Based organizations are really concerned civilized achievement of certain services to customers in the external environment. Achievement of results-oriented culture that respects the competitiveness of aggressiveness, personal initiative and willingness to work long and hard to achieve results. Examples: software company
3. Clan Culture
Have an internal focus on employee involvement and participation to meet the changing needs of the environment. Managers emphasized the value - the value of such cooperation, considering both its employees and their families and avoid the differences in status.
4. Bureaucratic culture
Possess an internal focus and orientation, consistent with a stable environment. These cultural rules and use money wisely highly valued, and the culture that supports and appreciates the way to work in accordance with rational and orderly method.

Environmental Needs
Flexibility Stability
Cultural adaptability of External Cultural achievement
Culture of internal fixation and bureaucratic culture
Strategy Focus

Corporate culture as an important mechanism to attract, motivate and attract talented employees. Which is considered as a predictive tool terhadapp overall organizational success. The manager put great emphasis in the selection and socialization so that fits with the value - the value of organizational culture, besides the leaders to strengthen or change their corporate culture by:
1. Communicating vision
2. Emphasizing vision through their daily activities, work procedures and reward systems.

Plan

Objectives (goals, Objectives) → plan (plan / blueprint) → Planning (planning)

Effective objective criteria:
1. Specific and measurable
2. Touching the vital area
3. Challenging and realistic
4. Duration clear
5. Associated with competence

Type - type of planning
1. MBO (Managers and Employees)
"Theory X versus theory Y"

Four categories of MBO:
a. Setting goals
b. Develop implementation plan
c. Running plan to use
d. Awards for performance

Benefits of MBO:
a. Employees motivated
b. Departmental objectives and goals tailored to individual company

Weaknesses:
a. If the relationship managers and employees will reduce the effectiveness of MBO bad
b. Administration is too much
2. Disposable Plan
The plan, which is used for all purposes and are not repeated in the future

Programs → projects → budget

Plans for a variety of uses
The plan, which is being executed is used to provide guidance for the task - a task performed repeatedly in the organization

Policies → procedure → regulation
3. Sustainable Planning
That plan menunjukkn company responses to specific situations, such as: an emergency or unexpected situation

Use Strategies and Action Plans
Management Strategy
Collection of decisions and actions that are used in the preparation of strategies and implementation strategies that will generate superior competitive fitness between the organization and its environment.

Strategy
Action plans that describe the allocation of resources and other activities to deal with and assist the organization in achieving his goal.

Three Tier Strategy:
1. Corporate Level Strategy
Depth of strategies related to the question "what business will be executed?". In connection with the company as a whole and the combination between business units and a range of products that make up the unity of the organization.
2. Business Level Strategy
Strategies relating to the question "how do we compete?". associated with each business unit or set of products within the organization.
3. Functional Level Strategy
Answering the question "how do we support business-level strategy?". associated with all departments.

Strategy Formulation
S = Strenght
Positive internal characteristics that can be used by companies to achieve strategic performance goals.

W = Weakness
Internal characteristics manghambat organizational performance.

O = Opportunity
Characteristics of the external environment which possess the potential to help the organization reach the goal.

T = Threat
Characteristics of the external environment menhambat organization to achieve goals.

Portfolio Strategy
This type of strategy at the corporate level associated with a combination of business units and range of products that fit together logically to generate synergy and competitive advantage for companies.

BCG (Boston Consulting Group)
A matrix that evaluates the business unit level strategy dimensions associated with business growth and market share.

The growth rate of Market Share
Star?
Dog cash flow
1. Cash Flow
- Market share of high
- High market growth rate
- Cash flow positive
- Promotion is not necessary
2. Star
- Market share of high
- High market growth rate
- Cash flow positive
- The level of slow business growth
3. Question Mark
- Market share of low-
- High level of business growth
- Negative Cash Flow
4. Dog
- Market share of low-
- Low market growth rate
- Passive Managers

Synergy
The condition that arises when part of an organization interact to produce a joint effect that is greater than the whole part, if acting alone.

Five Forces of Competition (Porter)
1. The inclusion of "new players"
2. Bargaining power from customers
3. Bargaining power from suppliers
4. The threat of substitute products
5. Competition among rivals

Three strategic forces (Porter)
1. Cost leadership: low production costs, so price competitive
2. Differentiation: products differ from competitors
3. Focus: focusing on a specific model

Decision Making

Making decisions
Identifying and selecting a series of measures to deal with specific problems or take advantage of an opportunity.

Time and Human Relations in Decision Making
• Time
Decision-making is influenced by past achievements, present situation and future expectations.
• Human Relations
Manager's decision-making is also influenced by the decisions of others that may be contrary to or interact with their kepuusan.

Problems and Opportunities
1. Problem: The situation that occurs when the actual situation does not match the desired state.
The process of identification problems:
a. Deviation from past experience
b. Deviation from the plan established by means managers do not meet projections
c. Complaints from other people (employees, customers, etc.)
d. Achievement competition
2. Opportunity: a situation that occurs when a state offers peluan on the organization to exceed planned targets

The decision to Decide
• The value of threshold
Managers see the problem depends on the value of the threshold for recognition of the problem, influenced by:
- Understanding of the objectives, plans and standards of acceptable performance
- Our Values
- The background and expertise of managers
• Determining priorities
Not all problems can be solved by the manager, so it needs a priority.

Nature of Managerial Decision
1. Programmatic decisions
• Problem solving routine that can be dealt with policy, prosedu and written or unwritten rules.
• To deal with problems that occur repeatedly and the component elements can be determined, predicted and analyzed.
2. Decision Not programmed
Specific settlement created by a process is not structured to handle transform and non-routine problems

Decision-Making Conditions
1. Certainty
PK conditions when a manager has information that is accurate, measurable and reliable about The goal of the various alternatives are being considered.
2. Risk
PK condition where the manager knows the probability of a particular alternative will lead to the desired goal or outcome.
3. Uncertainty
PK conditions when the manager of the external conditions that can not be predicted or lack sufficient information to determine the probability of outcome.

Rational Decision Making Model
Phase 1: Observation of the situation
• Definition of problem
• Diagnosis of causes
• Define objectives
Stage 2: Development of alternative
• Find creative alternatives
• Do not perform the evaluation prior
Phase 3: Evaluate alternatives and select the best alternative
• Evaluate alternatives
• Select the best alternative
Stage 4: Implementation of decisions and monitor results
• Arrange the implementation plan
• Perform implementation
• Monitor implementation and necessary adjustments but
Rational Models in Perspective
1. Rationality is limited and inadequate (Helbert Simon)
Limited Rationality: A concept that managers take the most logical decision to the constraint of limited information and capabilities.
Inadequate: PK technique in which managers accept that they find satisfactory decision first.
2. Heuristic (Tversky and Kehneman)
PK technique is carried out in accordance with the lines of empirical and general guidelines.

PK adaptive
• Game theory: The study of human knowing who makes independent choices.
• Chaos theory: The study of dynamical patterns in large social systems.

* A summary / overview introductory management class definitions along with a lot of meaning / sense of the term introduction to basic management.