Bøger af J Ronnie Davis

Often, economics is regarded as a collection of notional theories distanced far from the real world. Yet, economists maintain that theories are the foundation for predictions about what to expect in the real world. The disconnection seems particularly strong among undergraduate students immediately after taking principles of microeconomics and principles of macroeconomics. As freshman and sophomore students with no experience with the real world, they simply do not comprehend how economics can possibly be used. Later as seniors who major in business, they might have rare glimpses of economics as useful in making business decisions and crafting business strategies. After graduation and amidst their experience with business practice, they might finally see that economic principles underlie business analysis, business decisions, and business strategies. Frequently, business analysis is reductionism of complex matters into simple constituents that are studied through the lens of economic principles. In the same way, business decisions are practical applications of economic principles, and business strategies are informed by economic principles. Accordingly, managerial economics is essentially economics applied by managers, directors, and executives in their roles as decision makers and strategists. Accordingly, the focus of managerial economics should be on what managers, directors, and executives need to know and will use in business practice. Circumscribing managerial economics in this way, a lot of economics is not applied in business practice and can be left outside the limits of need to know. However, a lot of economics lies within the boundaries of use in business practice and need to know. Economics for managers, directors, and executives is centered on bringing economic principles to bear on business practices and business strategies. Of course, decisions are made and strategies are crafted within an organization, perhaps a business firm, nonprofit organization, or government agency. Regardless, organizations face countless problems requiring decisions or strategies to accomplish some mission or to achieve some objective subject to constraints, competitive or otherwise. Certain economic principles guide and lead to decisions and strategies that minimize exposure to adverse effects on organizational performance or that maximize favorable effects on organizational performance. Principles, practices, and strategies have purpose in their application to solving problems, minimizing threats, and realizing opportunities. Economics for Executives has purposeful intent. It is meant to develop comprehension of and comfort in application of economics actually used in business practice. Moreover, it is meant to address the economics that managers, directors, and executives really need to know for meaningful careers in business. Of course, this intent leaves out theories, abstractions, concepts, and constructs that might have significance and importance in other contexts such as public policy but not for business practice.

Integrity is important to me, so essential to my life that I decided to write my own prefatory comments rather than ask someone else. I was blessed with a mother and father of integrity in the sense of honesty and trustworthiness. Throughout childhood, adolescence, and early adulthood, my understanding of integrity was limited to this selfsame sense of fair dealing with people. After taking my doctorate in economics at the University of Virginia, I began a career in academics, eventually a fifteen-year stint as a business school dean at three different universities. In 1971, I began a robust management consulting practice alongside my academic career. Consulting reshaped my understanding and sense of integrity. Working with companies to improve productivity, cost, and profit as well as to facilitate strategic planning, I became concerned about organizational integrity, actually appalled at lapses in organizational integrity that I observed. This concern led to more thinking about integrity itself. First, I realized that integrity comes from the same Latin root as "integer," meaning a whole number. I then realized that integrity implies parts that must join, combine, and unite to make the whole. Next, I realized that organizational integrity joins, combines, and unites persons of integrity. In other words, organizational integrity is based on personal integrity. Finally, I realized that my understanding of integrity was too narrow, too limited. Honesty and trustworthiness are not integrity. The characteristics of honesty and trustworthiness are outward signs of integrity. When a person has integrity, he or she is honest and trustworthy.