In management, how important is it to learn to use mathematics to solve problems? How valuable is an MBA degree without the ability to identify and calculate the cost of a company’s capital, its return on investment, gross margin percentage, break-even point, or what percent of a population would be willing to buy its product?
Within any business the management team should be able to solve mathematical problems throughout the business. In order to determine if the business has made any type of money the management team would have to calculate the net profit of the business. It is very important to be able to solve mathematical problems and by having a MBA without the mathematics would be a waste of time. Sure many programs out their will do the math for you or the business but how accurate can that be if someone miscalculates the number’s within those programs. Mathematical equations can be used in a variety of ways within the workplace or business.
It is important to be able to solve these mathematical equations so that the business heads in the right direction. Customer’s want to be able to trust the business with their money or other valuable assets. If the customer’s do not trust the business the customer’s are certainly not going to purchase any type of products from your business. Math is used in every part of the business world especially as a manager.
I have been a manager before and some of the math problems were done on a computer but most of the work was done by the manager. By getting the weekly numbers and daily numbers depending on sales. We would have to find the payroll percent and what sales were compared to last year’s numbers.
In business you have to use equations to find the numbers for the amount of sales that you have had for the day. At my current job you have many different things that require equations to find out the percent in sales, food cost, payroll, and operating supplies. For example the food cost is determined by a 24 hour period. If you pull the food that you need for the entire day from a certain period your food cost is determined by the amount of sales that you have for the day.
Say you have for day one 29.9, Day two; 31.4, day three; 35.5, day four; 38.7, day five; 28.9, day six; 27.5, and day seven; 29.9 the food cost percent would be 31.7 for a week. By adding these numbers together and dividing by seven you get the percent of your food cost. Now, your company may be different but many of them have to be under a certain number in order to receive their bonus for that week. The company that she currently works for requires that you have a food cost below 30.0.