I have a business idea of creating a business company that will sell laptops to college students. However for my company to thrive in the market competition I have to apply the Mankiw’s ten principles of economics. Mankiw’s ten principles of economics provide the best initiative which a business organization should follow in order to prosper in the market competition.
The first four principles mainly deal on how to make the right decisions. For the laptop business to succeed, I have to interlink all the goals with each other. Therefore before I start my business I should ensure all my goals are interlinked. The plan and decision that I will make at the start of my business will determine the future of my business. Business managers, who make the right decision at the beginning of their managerial role, are likely to become successful as compared to business managers who make the wrong decisions at the start of their business. Thus it is important for business organizations to evaluate the type of decisions they implement.
The fifth, sixth and seventh principles evaluate how the economy works. For the laptop business to be profitable, resources should be well utilized. Qualified and experienced employees should be deployed to work in their field of specialization and interest. Creation of a good working environment and good allocation of resources will increase the productivity of the organization.
The eight, ninth and tens principles explain how should people interact at the work place. A business company should provide high standards of living to its employees. Business organizations should increase their rate of inflation to reduce the rate of unemployment in the society. In addition when the value of money depreciates, the value of commodities will appreciate hence business organization should take advantage and increase their productivity.
Yoram Bauman, (June 12, 2002), Mankiw’s Ten Principles of Economics, Translated for the Uninitiated; http://www.smallparty.org/yoram/humor/mankiw.pdf
Gregory Mankiw and Frank & Bernake, (1 Oct. 2006), Principles of Economics