Economic analysis is a necessary element in building a competitive enterprise or company. It allows you to look for weaknesses and shortcomings, predict and simulate the future situation and implement many other similar moments.
General information
Economic analysis is a scientific system of knowledge based on the laws of functioning and development. It is used to form a methodology for diagnosing, evaluating and forecasting financial and economic activity. Each science necessarily has its own subject. And here you can form the main question of the entire article. What is the subject of economic analysis within the framework of the system under consideration? It recognizes the economic processes taking place at enterprises, their economic and social efficiency and the final results of activities, which are formed under the influence of subjective and objective factors, which is expressed in financial indicatorsreceived information. It should be noted that the subject (object) of economic analysis poses a number of tasks for researchers. Among the main ones, the following should be highlighted:
- Checking the optimality of managerial decisions.
- Identification and influence on the internal reserves that exist within a certain production process.
- Determining the level of efficiency in the use of material and labor resources.
- An objective review of the implementation of plans and established standards.
- Optimization of the scientific and economic factor of validity.
So, we have already found out that the subject of economic analysis is the economic and financial aspects of the activities of enterprises or sectors of the country. But these are common words! Therefore, let's consider the issue in more detail.
Role and usefulness
Economic analysis is a necessary element for long-term successful management. Therefore, depending on the needs facing a person, several types are distinguished. It should be noted that the classification is rather conditional, because in practice the need to apply something in its pure form is rare. Let's consider a small example. We have a market economy. It is characterized by the dynamism of the internal and external environment of the enterprise. In this case, operational analysis plays an important role. After all, what is important? In this case, the subject of economic analysis is the complexity and efficiency of processing information arrays anduse of the received data at the level of individual functional services.
Classification of species
In this case, signs play a big role. So, in the case of the level of information support, analyzes are carried out:
- Internal management.
- External financial.
Depending on the content of the management process, they are distinguished:
- Preliminary (prospective).
- Follow-up (retrospective).
- Operational.
- Final (final).
According to the nature of the control objects, analysis is distinguished:
- The constituent elements of production and the relations existing on it.
- Stages of expanded reproduction.
- Departments and enterprises.
- Industry.
Depending on the subject analysis on behalf of:
- Economic services and guidance.
- Governing bodies and owners.
- Counterparties (these are financial and credit authorities, buyers, suppliers).
Depending on the frequency of the analysis, it happens:
- Daily.
- Decade.
- Monthly.
- Quarterly.
- Annual.
Depending on the completeness of the issues studied and their content:
- Thematic.
- Local.
- Full.
Depending on the methods used to study objects, analysis can be:
- System.
- Comparative.
- Complete.
- Solid.
- Custom.
Depending on the level of automation allocate:
- Analysis using computer software.
- Without using the above.
As you can see, the variety is significant.
Methodology used
Of course, you can concentrate on the main topic. But in order to understand it better, it is necessary to consider together the subject and method of economic analysis. It is on this basis that it would be advisable to make a small digression. So, methods are ways to implement approaches to the study of economic processes during their smooth development. They have such characteristic features as:
- Define a baseline scorecard that can be used to evaluate an organization's performance.
- Identification of relationships between various factors.
- Setting the subordination of indicators with the total result of factors.
- The choice of ways and techniques that will study the relationship.
- Quantitative change in the strength of the influence of the factor on the aggregate indicator.
All together this is part of the methodology of economic analysis. It intersects three areas of knowledge. These are economics, statistics and mathematics. In the first case, these are comparison, grouping, graphic and balance methods. Statistical methods are used in the following way: relative and average values, regression and correlation analysis, index method and otherssuch moments. Mathematical methods are represented by matrix, production function theory, input-output balance, graphs, games, queuing, non-linear and dynamic programming.
Small explanation
What is all this for? After all, we know that processes are the subject of economic analysis of the economic activity of an enterprise. Why is there math here? And the answer here is simple: it is necessary for calculations. Let's look at a small example. The subject of economic analysis is the income that the company received in 2016. To understand whether things are going well or not, you can use the comparison technique. It involves a comparison of the studied facts and data of economic life. That is, in order to find out whether the situation of the enterprise has improved in 2016, its income must be compared with the situation in 2015. But is it possible to say that only one of these is enough? No. After all, it is also necessary to take into account the influence of inflation, calculate the amount of profit and many other parameters.
What is used to study the subject?
What tools are used by people who do economic analysis? Assume that we already have accurate and reliable data. What can we do with them? Here is a short list of the main tricks:
- Comparison discussed earlier.
- Average values. They are calculated based on the available data array. The tool is used to identify general patterns.
- Groups. Used to displaydependencies in complex phenomena.
- Balance method. Used to compare two sets of indicators that tend to a certain balance.
Complicating the tools used
Agree, quite simple points were previously considered. Let's make it a little more complicated:
- Graphic method. Used to recreate scale images of indicators, as well as to identify their dependencies.
- Index method. Based on relative indicators that express the relation of the phenomenon to the base of comparison.
- Method of regression (stochastic) and correlation analysis. Used to ensure a close relationship between indicators between which no functional relationship has been established.
- Matrix model. It is a schematic reflection of economic phenomena or processes, for which scientific abstraction is used.
- Mathematical programming. This is the main tool for solving existing problems of optimizing business operations.
- The method of operations research. It involves the study of economic systems to determine such a structure of interconnected elements that will achieve the best economic performance possible.
- Game theory. She is engaged in mathematical modeling in conditions of conflict between several parties that have their own interests, or in case of uncertainty.
Example
Let's look at the medical situationon the example of a medical institution. The subject of economic analysis of he althcare facilities is the relationship of specialists with clients (doctors and junior staff, on the one hand, and patients, on the other). When someone gets sick, he goes to a specialized institution. There, a person is examined, pills are prescribed for him, and procedures are prescribed if necessary. And then there is the payment. Here, economic analysis is faced with the task of optimizing processes, for example, ensuring a situation where a person buys everything in a pharmacy of a medical institution.
Summing up
So, we already know that the subject of economic analysis is the internal interaction in the enterprise. An important aspect should be noted: the practical use of the knowledge of this discipline allows for a gradual transition from the initial to the final factor system. But that's not all. Depending on the nature of the relationship, deterministic and stochastic factor analysis are distinguished.
Conclusion
Here we have considered the subject of economic analysis of the enterprise and sectors of the economy. All phenomena and processes that take place are in a certain interdependence and interconnection. Economic analysis at the same time allows you to identify the most important points and focus on them. Thanks to it, it is possible to ensure a higher level of efficiency of the enterprise or even the entire sector of the national economy of the country. But it is not enough to draw the right conclusions, it is necessaryto put them into practice. After all, what is even the most perfect economic analysis and data obtained worth if they are not taken into account by the managerial personnel for whom they are being prepared?
