Wa'ad ALMutairi

The Strategic Context of the Organization

Week 3 Reactions

October 1, 2021

In the third week of class, we've covered the terminology of economics and Game theory With Ben Artz. Economics is all about the study of how the decision-makers best manage or allocate scarce or limited recourses. Knowing that economics deals with production, distributions, and services. Marginal analysis, it's very important to compare the framework of benefits with all activities to all additional or potential costs. It's all about incremental benefits and incremental cost, one step at a time. sticking with your decision of the increments that change is wrong in terms of thinking of how much you have spent Which is sunk cost. The purpose of economists makes a positive statement about the world based on quantitative evidence. provide data analyses to what possible to make in business provide consulting guidance suggestions opinions as well as the normative statements. Economics is all about models charts and graphs to describe behaviors and decisions in the reality. Either one variable consists of time, or hypotheses about economic behavior that can be tested by using the statistical data analyses. economics came first since it's the original theory of business. Supply and demands are the most basic model in economics. The first demands are the consumer's perspective of the market, its relationship between the price we pay for something and how many units we buy of it, willingness, and ability to buy it. Whereas, supplier's perspective of the market, its relationship between price and how many units we buy of it.

Game theory, its disciplines of economies trying to understand the behavior of people around us, its relationships between companies. It ends up how companies in the market are working together to make choices to empower their income for them. It helps to get to the dominant strategy, which a decision would be taken no matter what the other company would do.

implicit collusion: learn behaviors of your competitors, build trust with each other, to get an outcome for both of them but aren't best for everyone. It is interesting to know Harold hoteling's location studies, to illustrate closer form your customers are higher profits, not just geographical distance. Try to be close to your customers as you can. How to relate the strategy to your career. I believe to learn all those different aspects of economics in that class to realize that all decisions are made upon huge a study and it's not a choice. To think of what you need or what customers need from you, or what your career needs to develop in order to keep calming your way up. It lets me sit back and think of all around me and all the improvements I should seek now to keep up with the strategic method I'll follow in my career.