What should an economy manager know in 2021?

Professor Alberto Trejos, Ph.D., academic director of our executive program Economics for Latin American Business and professor of our Executive MBA, shared in one of our webinars some of the things a manager should know about Economics in times of uncertainty .

Professor Trejos comments that, although economic analysis can be delegated to specialists, what cannot be delegated is what a manager does about it. The question is returned to the manager, as big decisions are strategic and affected by the environment. The company is surrounded by market, country and world circumstances, so you must be prepared.

And it is that for decision makers the order and central issues are within the organization, trying to make all departments work properly, but the environment cannot be ignored, since big surprises often come from outside the company. 

This is why managers must come to ask themselves: What does that mean for my own strategy? What direction should I give it? What decisions should I make about it?

A strategy is required that leads the organization to its goals and this means addressing logistical, financial, human and operational issues, but the results and the selection of correct decisions to implement that strategy are impacted by what happens around it, and by that must be taken into consideration when choosing a route.

"The higher one is in the organization, the more linked to the outside world the decisions I have to make" says Professor Alberto Trejos, also a former Minister of Foreign Trade of Costa Rica. The environment must permeate all decisions made.

These are the environmental factors that affect the company that must always be considered:

• Politics

• My markets

• My country 

• The world

In addition, the professor explains how macroeconomics affects companies for decision-making and the importance of a manager knowing how it is measured, how it behaves, what determines, how it affects him and how he reacts to 4 aspects of the economy:

• National Income: How much do people have in their pockets?

• Inflation rate: What will happen to costs and prices?

• Interest rate: What is the value of liquidity over time?

• Exchange rate: How easy do I compete with foreigners?

Everything is related to the analysis of my company with its environment. 

On the other hand, in line with the topics addressed, the professor highlighted how through our program Economics for business in Latin America  and Executive MBA, you can go even deeper into these topics.

We invite you to learn more details about the subject in the recording of the Webinar: What should a manager know about economics in 2021? See full Webinar here: https://youtu.be/-skY-rPa_WY