research/ economics min error of forecast organization chart
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Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
MINIMIZE COST?Responsible for resource providers
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
MINIMIZE ERROR OF REPORTING?Responsible to SEC & Professional Org.
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
MAXIMIZE NET PRESENT VALUE?Responsible to Stockholders
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
MINIMIZE LOSS OFGOODWILL?Responsible for main-Taining customer goodwill
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
WHO MAXIMIZES CORPORATE VISIBILITY?
Responsible for Goodwill in the long
run
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
PUBLIC RELATIONSMAX Goodwill visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
MINIMIZE UNDESIRABLE VISIBILITY? ResponsibleFor Enforcement Authorities
PUBLIC RELATIONSMAX Goodwill visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
PUBLIC RELATIONSMAX Goodwill visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
MAXIMIZE WINDFALLS FROM GOVERNMENT? Responsible forTop decision makers in government
PUBLIC RELATIONSMAX Goodwill visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
PUBLIC RELATIONSMAX Goodwill visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
MINIMIZE REPORTING ERROR FOR FIRM’S PAST? Responsible for posterity
PUBLIC RELATIONSMAX Goodwill visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
Historian MIN Reporting Error of Firm’s Past
Historian MIN Reporting Error of Firm’s Past
PUBLIC RELATIONSMAX Goodwill visibility
Studies Used in Private Organizations
Objectives Choices Type of Study Department
Min Error Statistical technique Forecast, Scenarios, Simulations, Sensitivity Analysis
Economics, Finance, Planning, Research
Max Sales Advertising, pricing Advertising, Demand Marketing
Max Ouptut, Min Cost, Max Productivity
Inputs, technologies Engineering, Production, Cost Effectiveness, Feasibility
Engineering, Production, Personnel
Max Profit Planning, method of reporting
Income Statements, Business Plan
Accounting, Finance
Max Net Present Value
Real estate, plant, equipment
Capital Budgeting Finance, Planning
Max net Benefit Public projects, taxes, regulation
Cost-benefit Analysis Lawyers, Lobbyists, Trade Associations, Management
Max Social Welfare
Other govt regulation Govt. Studies (same)
AGENCY PROBLEMPrincipals = OwnersAgents = Managers and other employees who are not owners
Individual Agents compromise an organization’s goals by
achieving goals of their own.
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
ORGANIZATION CHART
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
Historian MIN Reporting Error of Firm’s Past
Historian MIN Reporting Error of Firm’s Past
AP: poison pills, greenmail
AP: Write EXPOSE
AP: unprofitabledeals
AP: larceny,report delay
AP: Whistleblowing
AP: Thievery, waste,failing to report problems
AP: Leakinginformation
AP: Creatinglegal problems
AP: Brusquetreatment of customers
PUBLIC RELATIONSMAX Goodwill visibility
AP: Grab own spotlightUnwanted visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
How does your practice cover these responsibilities?
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
Historian MIN Reporting Error of Firm’s Past
Historian MIN Reporting Error of Firm’s Past
AP: poison pills, greenmail
AP: Write EXPOSE
AP: unprofitabledeals
AP: larceny,report delay
AP: Whistleblowing
AP: Thievery, waste,failing to report problems
AP: Leakinginformation
AP: Creatinglegal problems
AP: Brusquetreatment of customers
PUBLIC RELATIONSMAX Goodwill visibility
AP: Grab own spotlightUnwanted visibility
Research/ EconomicsMIN Error of Forecast
Research/ EconomicsMIN Error of Forecast
Will You do these all yourself? Really?
MARKETING DEPARTMENTMAX SALES
MARKETING DEPARTMENTMAX SALES
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
ENGINEERING, PRODUCTION, PURCHASING, PERSONNEL:MIN COSTS or MAX PRODUCTIVITY or MAX OUTPUT
Accounting MIN Reporting Error
Accounting MIN Reporting Error
MANAGEMENT/ FINANCEMAX Net Present Value
MANAGEMENT/ FINANCEMAX Net Present Value
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
CUSTOMER RELATIONSMIN Loss of GoodwillMIN Cost per customer
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LEGAL COUNSELMIN Undesirable VisibilityMIN Legal Costs (?)
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
LOBBYISTSMAX Government Windfalls MIN Compliance Costs
Historian MIN Reporting Error of Firm’s Past
Historian MIN Reporting Error of Firm’s Past
AP: poison pills, greenmail
AP: Write EXPOSE
AP: unprofitabledeals
AP: larceny,report delay
AP: Whistleblowing
AP: Thievery, waste,failing to report problems
AP: Leakinginformation
AP: Creatinglegal problems
AP: Brusquetreatment of customers
PUBLIC RELATIONSMAX Goodwill visibility
AP: Grab own spotlightUnwanted visibility
MARKET GOVERNMENT GOVERNMENTFAILURE INTERVENTION FAILURE EXTERNALITY PUBLIC ENTERPRISE ADMINISTRATIVE-PUBLIC GOODS-NATIONALIZATION COSTMARKET -PRIVATIZATION COMPLIANCE POWER REGULATION COSTINEQUITIES - OUTPUT EFFICIENCY COSTDYNAMIC - PRICE - NEGATIVE EXTER. MKT. FAIL. - STANDARDS -PUBLIC BADSINDIVISIBILITY ANTITRUST - MKT POWERINFORMATION -STRUCTURE - INEQUITIES ASYMMETRY -CONDUCT - DYNAMIC TAXES (SUBSIDIES) - INDIVISIBILITY PROVISION OF - INFORMATION INFORMATION RATIONING (MONEY)
GOVERNMENT STUDIESType ofStudy
Objective of Study Definition andFocus
ImplicitConstraints
Problem________
Cost BenefitAnalysis
Net Social Benefit Benefits & costsincluded towhomeveroccurring
None Comprehensivemeasurement ofbenefits & costs ishard
Regulatory ImpactAnalysis
Net Social Benefit& other socialobjectives
Includes costbenefit analysis andother studies
Environmental &other constraints
Goes beyond cost-benefit, butbecomes verysubjective
Economic ImpactAnalysis
Describe allregulatoryt impacts
Examines price,output, financial, &employmentimpacts
Assumes impactsshould be minimal
Regulationdiscouraged.Limited weighingof costs/benefits
Closure Analysis Maximizeregulatoryobjective
Defines degree ofregulation that willshut firms down
Implicitly, firmsare not to be shutdown
Overregulatesprofitable,underregulatesunprofitable
Cost EffectivenessAnalysis
Maximize pollutionabatement, etc.
Avoids $ value onbenefits ofgovernmentintervention
Budget or costconstraint limitsamount ofintervention
Comparisonsdifficult acrossdifferent types ofintervention
Fiscal ImpactAnalysis
Up to decisionmakers
Focuses only ongovt. unit
Govt. revnue mustexceed cost
Ignores costws &benefits to society