Enterprise Economics
An area of study within strategic planning focusing on economic analysis and financial modeling to support investment decisions.
Implications
The study and analysis of the economic factors that impact a business at the enterprise level, including cost structures, revenue models, capital investment, and economic value creation, often used to optimize financial performance and strategic decision-making.
Example
Example: A large manufacturing firm conducts an enterprise economics analysis to identify the most profitable product lines, guiding decisions on resource allocation and capital investment.
Related Terms
Different from macroeconomics, which focuses on entire economies, enterprise economics is concerned with the financial and operational dynamics within a single organization.
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