An economic analysis is an analysis of the economic conditions of a company, a business enterprise or any other economic entity such as a state, region or a country. An economic analysis of a company or business organisations tries to analyze the internal conditions of the company, external factors that influence it and also possible areas of improvement.

The main and core objective of an economic analysis is to find out whether or not the economic entity is allocating its resources in the most cost effective manner or not. You can refer to the following given sample of an economic analysis of a company for more information on the same.

Sample Economic Analysis

This economic analysis is conducted by: Latte magazine

The economic analysis has been executed and researched by: Tim Morrison


Category of economic analysis: Business enterprise economic analysis.

Name of business organisation: Mathew and Sons.

Nature of the economic analysis:

  • This analysis examines the internal workings of the organisation and the various external economic influences which have an effect on the financial condition.
  • This analysis evaluates the scope for improvement in various departments and then passes a written and well detailed verdict of the same.
  • Special efforts have been made to check whether the company is using its resources in an effective way or not.

Verdict:

  • Mathew and Sons have over 50 employees working in all departments and thus productivity is high and as per the standards and goals of the organisation.
  • The company suffers from the shortage of liquid funds and thus needs to build up on that by allocating resources in a more productive and well balanced way.
  • Quality of machinery, capital and labor force etc seem to be up to the mark.
  • There are too many unskilled workers working in the organisation which can prove to be a negative point in the future for the organisation.

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