Arnon Dror is known for his work in Portland, Oregon, where he is the VP of Finance for the US Channel Group, Xerox. He is a highly educated individual, particularly in the field of financing, holding both an MBA and an MA in Micro Economics. Since this February, he has built a particular interest in macro economics again, determining how this field can help to solve real world business problems.
Arnon Dror on Managerial Economics
In essence, Arnon Dror concerns himself with managerial economics, which contains both micro and macro economic principles and tools. Using these tools has enabled him to solve real world business problems. He is one of the few people, however, who uses micro economics in particular, as most other financial expert only use this for development work and startup programs. However, according to Dror, the tools used in micro economics include:
- Production and cost analysis.
- Demand analysis.
- Pricing theory and practice.
- Break even analysis.
- Location decisions.
- Technical progress.
- Capital budgeting.
At the same time, he employs the various established tools of macro economics, such as:
- Business cycles.
- National income analysis.
- Fiscal policy.
- Monetary policy.
- Government finance.
- Central banking.
- International trade.
- Economic growth.
- Free trade protectionism.
- Balance of payments.
- International monetary systems.
- Exchange rates.
Dror understands like no other how finance is a true science, one that is linked to economic theory and more.
Managerial Economics and Economics
Managerial economics is to economics what medicine is to biology and engineering is to physics. Dror believes that both macro and micro economics are vital to the understanding of current and projected business conditions. This means he uses these theories for economic forecasting and more.
Managerial Economics and Decision Sciences
It is possible to create decision models by formatting ideas to resolve certain problems. This uses a process made up of a range of techniques, including differential calculus, optimization, mathematical programing, and more. In so doing, people like Dror are able to determine what the possible impact is of different courses of action, determining which one is best.
Managerial Economics and Accounting
There is also a clear link between managerial economics and accounting, particularly because the language of business is made up of accounting statements and data. Accountants across the world have a significant impact on the revenue and cost information of businesses and how that is classified. This is why people like Dror make a point of understanding how accounting data is generated, interpreted, and used. This is about more than simple bookkeeping, however. Indeed, it can be used to make programs more economically viable as well.
Clearly, economics is a very wide-ranging and fascinating subject. It looks at issues everybody faces, from the common man to the top Fortune 500 company. It helps to determine how and when resources should be allocated and in what quantity. This is relevant to individuals, businesses, and even entire countries, as they all face issues with finite and limited resources. For Dror, managerial economics and finances are the key to resolving those types of issues, at every level.
