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13 Mar 2020

Сhoosing a profession, or what is the difference between management and economics

Many people wonder who the manager is when they see his work in a fast food restaurant, an electrical store, or a grocery supermarket. Why is this profession so in demand and highly paid?

 

In different types of activities, "management" has its own characteristics. Let's look at an example of what management is and how it differs from the economy.

 

Imagine a bottle of yogurt. It is a green bottle of 0.5 liters, inside the product there is chia seeds. Why was the green color chosen, and why were these seeds added? These questions are easily answered by the marketing manager or marketer. He knows that the green color reminds of spring, energy and youth, and chia seeds contain many useful substances, which is so in demand among people who are passionate about a healthy lifestyle and healthy nutrition. The marketer knows what people want and helps the yogurt producer sell as many products as possible.

 

Yogurt costs 35 rubles. You can ask: “why exactly 35 rubles?” It's simple: the manufacturer paid 3 rubles for the ingredients for yogurt, 2 rubles for equipment, 1.5 rubles for the work of employees, 1.5 rubles for delivery, 1.5 rubles for packaging, etc. All this is a cost structure for which financiers are responsible. Together with marketers, they calculate the profitability of the product and decide on how much the yogurt will cost for the customer.

 

When the yogurt is ready, it needs to be delivered to stores. Logistics deals with it. The logistician came up with the idea that bottles of this shape should be stacked in boxes of 10 each, because in such combination more boxes fit in a shipping container and take up less space in the warehouse. So the logistician helped the company save on transportation and storage. And saving is profit — the main goal of any business.

 

The company also has a specialist in human resource department — HR. This specialist selected a team of marketer, financier and logistician who invented and brought the product to the market. Also, a production specialist, a procurement specialist, an IT specialist, an analyst and many others work on yogurt.

 

The most important task of a top manager is to bring together marketers, logisticians, financiers and build all the work so that business processes are effective and profitable for the company. Management combines many functions, without which it would be impossible to give you a taste of yogurt with chia seeds in a green bottle.

 

The main area of activity of economists is the implementation of an economic analysis of the organization's activities, the development of measures to ensure a saving regime, increase work efficiency, identify reserves, prevent losses and unproductive expenses.

The main difference between management and the economy is that the manager manages people and various resources, and the economist analyzes the current economic situation in the company and proposes a development or savings plan.

 

Economics is taught at the Economic Departments of Universities, and management at Business Schools. Education in the best business schools in Eastern Europe, marked in recognized international rankings, differs from the classical one in that it includes a large number of practice, group work and workshops from business experts.