What is the subject of economic analysis? Comprehensive answer

Economic analysis is a necessary element in building a competitive enterprise or company. It allows you to search for weaknesses and weaknesses, predict and model the future situation and implement many other similar moments.

general information

Economic analysis is a scientific system of knowledge that is based on the laws of functioning and development. It is used to formulate a methodology for the diagnosis, assessment and forecasting of financial and economic activity. Each science necessarily has its own subject. And here you can formulate the main question of the entire article. What is the subject of economic analysis within the framework of the system in question? Under it are recognized the business processes taking place at enterprises, their economic and social effectiveness and the final results of activities that are shaped by subjective and objective factors, which is expressed in the financial indicators of the information received. It should be noted that the subject (object) of economic analysis poses a number of problems for researchers. Among the main ones, the following should be highlighted:

• Checking the optimality of management decisions.
• Identification and impact on internal reserves existing within a specific production process.
• Determining the level of effectiveness of 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, we consider the question in more detail.

Role and expediency

Economic analysis is a necessary element for long-term successful management. Therefore, depending on the needs of a person, several types are distinguished. It should be noted that the classification is rather arbitrary, because in practice the need to use something in its pure form is rare. 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, an important role is played by operational analysis. After all, what is important? In this case, the subject of economic analysis is the complexity and efficiency of processing information arrays and the use of the data obtained at the level of individual functional services.

Species classification

In this case, signs play a large 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, there are:

• Preliminary (prospective).
• Subsequent (retrospective).
• Operational.
• Final (final).

The nature of the objects of management distinguish analysis:

• The constituent elements of production and the relations existing on it.
• The stages of expanded reproduction.
• Departments and enterprises.
• Industry.

Depending on the subject, the analysis on behalf of:

• Economic services and leadership.
• Management bodies and owners.
• Counterparties (these are financial and credit bodies, buyers, suppliers).

Depending on the frequency, the analysis happens:

• Daily.
• Decade
• Monthly.
• Quarterly.
• Annual.

Depending on the completeness of the questions studied and their content:

• Thematic.
• Local.
• Full.

Depending on the methods used to study objects, the analysis happens:

• Systemic
• Comparative.
• Complete.
• Solid.
• Selective.

Depending on the level of automation, there are:

• Analysis using software of electronic computers.
• Without using the above.

As you can see, the diversity is significant.

Methodology used

Of course, you can concentrate on the main topic. But in order to better understand it, it is necessary to consider the subject and method of economic analysis together. 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 business processes during their smooth development. They have such characteristic features as:

• Determination of the basic system of indicators with which it will be possible to assess the activities of the organization.
• Identification of the relationship between various factors.
• Establishment of subordination of indicators with the combined result of factors.
• The choice of methods and techniques that will study the relationship.
• A quantitative change in the force of influence of a factor on an aggregate indicator.

All together, this is included in the methodology of economic analysis. It intersects three areas of knowledge. These are economics, statistics and mathematics. In the first case, it is a comparison, grouping, graphic and book methods. Statistical methods are used in this direction: relative and average values, regression and correlation analysis, index method and other similar moments. Mathematical methods are represented by matrix methods, the theory of production functions, interindustry balance, graphs, games, queuing, nonlinear and dynamic programming.

A little explanation

Why is this all? After all, we know that the subject of economic analysis of the economic activity of an enterprise is processes. Why is 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 facts studied and the data of economic life. That is, to find out if the position of the enterprise has improved in 2016, its income must be compared with the situation in 2015. But can it be said that this alone is enough? No. After all, it is still necessary to take into account the effect of inflation, to calculate the amount of profit and many other parameters.

What is used to study the subject?

What tools are used by people who carry out economic analysis? Suppose that we already have accurate and reliable data. What can we do with them? Here is a short list of basic techniques:

• The comparison considered earlier.
• Average values. They are calculated based on the available data array. The tool is used to determine general patterns.
• Groupings. They are used to display dependencies in complex phenomena.
• Balance method. It is used to measure two sets of indicators striving for a certain equilibrium.

We complicate the tools used

Agree, earlier were considered quite simple points. Let's complicate them a bit:

1. Graphic way. Used to recreate large-scale images of indicators, as well as identify their dependencies.
2. Index method. It is based on relative indicators that express the relation of the phenomenon to the comparison base.
3. Method of regression (stochastic) and correlation analysis. It is used to provide a close relationship between indicators between which a functional relationship has not been established .
4. Matrix model. It is a schematic reflection of economic phenomena or processes, for which scientific abstraction is used.
5. Mathematical programming. This is the main tool for solving existing problems of optimizing business operations.
6. Operational research method. It involves the study of economic systems to determine such a structure of interconnected elements that will achieve the best economic indicators of all possible.
7. Game theory. She is engaged in mathematical modeling in a conflict of several parties that have their own interests, or in case of uncertainty.

Example

Let's look at the situation with medicine as an example of a medical institution. The subject of economic analysis of hospitals is the relationship between specialists and clients (doctors and junior staff, on the one hand, and patients, on the other). When someone falls ill, he goes to a specialized institution. A person is examined there, pills are prescribed for him, and procedures are prescribed for the need. And then comes the payment. Here, economic analysis is faced with the task of optimizing processes, for example, ensuring a situation where a person buys everything at the pharmacy of a medical institution.

Summarizing

So, we already know that the subject of economic analysis is the internal interaction at the enterprise. An important aspect should be noted: the practical use of the knowledge of this discipline allows a gradual transition from the initial to the final factor system. But that is not all. Depending on the nature of the relationship, deterministic and stochastic factor analysis are distinguished.

Conclusion

So we examined 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 him, it is possible to provide a higher level of efficiency of the enterprise or even the whole sector of the national economy. But it is not enough to draw the right conclusions, it is still necessary to put them into practice. After all, what is even the most advanced economic analysis and data obtained worth if it is not taken into account by the managerial personnel for whom they are prepared?