Classical Political Economy Essay Example for Free

Classical Political Economy Essay Publication of Adam Smiths The Wealth of Nations in 1776, has been described as the effective birth of economics as a separate discipline.[108] The book identified land, labor, and capital as the three factors of production and the major contributors to a nations wealth, as distinct from the Physiocratic idea that only agriculture was productive. Smith discusses potential benefits of specialization by division of labour, including increased labour productivity and gains from trade, whether between town and country or across countries. [109] His theorem that the division of labor is limited by the extent of the market has been described as the core of a theory of the functions of firm and industry and a fundamental principle of economic organization.[110] To Smith has also been ascribed the most important substantive proposition in all of economics and foundation of resource-allocation theory – that, under competition, resource owners (of labour, land, and capital) seek their most profitable uses, resulting in an equal rate of return for all uses in equilibrium (adjusted for apparent differences arising from such factors as training and unemployment).[111] In an argument that includes one of the most famous passages in all economics,[112] Smith represents every individual as trying to employ any capital they might command for their own advantage, not that of the society,[113] and for the sake of profit, which is necessary at some level for employing capital in domestic industry, and positively related to the value of produce.[114] In this: He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effec tually than when he really intends to promote it.[115] Economists have linked Smiths invisible-hand concept to his concern for the common man and woman through economic growth and development,[116] enabling higher levels of consumption, which Smith describes as the sole end and purpose of all production.[117][118] He embeds the invisible hand in a framework that includes limiting restrictions on competition and foreign trade by government and industry in the same chapter[119] and elsewhere regulation of banking and the interest rate,[120] provision of a natural system of liberty — national defence, an egalitarian justice and legal system, and certain institutions and public works with general benefits to the whole society that might otherwise be unprofitable to produce, such as education[121] and roads, canals, and the like.[122][123] An influential introductory textbook includes parallel discussion and this assessment: Above all, it is Adam Smiths vision of a self-regulating invisible hand that is his enduring contribution to modern economics.[124] The Rev. Thomas Robert Malthus (1798) used the idea of diminishing returns to explain low living standards. Human population, he argued, tended to increase geometrically, outstripping the production of food, which increased arithmetically. The force of a rapidly growing population against a limited amount of land meant diminishing returns to labour. The result, he claimed, was chronically low wages, which prevented the standard of living for most of the population from rising above the subsistence level.[125] Malthus also questioned the automatic tendency of a market economy to produce full employment. He blamed unemployment upon the economys tendency to limit its spending by saving too much, a theme that lay forgotten until John Maynard Keynes revived it in the 1930s. While Adam Smith emphasized the production of income, David Ricardo (1817) focused on the distribution of income among landowners, workers, and capitalists. Ricardo saw an inherent conflict between landowners on the one hand and labour and capital on the other. He posited that the growth of population and capital, pressing against a fixed supply of land, pushes up rents and holds down wages and profits. Ricardo was the first to state and prove the principle of comparative advantage, according to which each country should specialize in producing and exporting goods in that it has a lower relative cost of production, rather relying only on its own production.[126] It has been termed a fundamental analytical explanation for gains from trade.[127] Coming at the end of the Classical tradition, John Stuart Mill (1848) parted company with the earlier classical economists on the inevitability of the distribution of income produced by the market system. Mill pointed to a distinct difference between the markets two roles: allocation of resources and distribution of income. The market might be efficient in allocating resources but not in distributing income, he wrote, making it necessary for society to intervene.[128] Value theory was important in classical theory. Smith wrote that the real price of every thing is the toil and trouble of acquiring it as influenced by its scarcity. Smith maintained that, with rent and profit, other costs besides wages also enter the price of a commodity.[129] Other classical economists presented variations on Smith, termed the labour theory of value. Classical economics focused on the tendency of markets to move to long-run equilibrium.

black holes :: essays research papers

The Search for Black Holes: Both as a Concept and An Understanding for age’s people have been determined to explicate on everything. Our search for explanation rests only when there is a lack of questions. Our skies hold infinite quandaries, so the quest for answers will, as a result, also be infinite. Since, its interception, Astronomy as a science speculated heavily upon discovery, and only came to concrete conclusions later with closer inspection. Aspects of the skies which at one time seemed like reasonable explanations are now laughed at as egotistical ventures. Time has shown that as better instrumentation was developed, more accurate understanding was attained. Now it seems, as we advance on scientific frontiers, the new quest of the heavens is to find and explain the phenomenon known as a black hole. The goal of this paper is to explain how the concept of a black hole came about, and give some insight on how black holes are formed and might be tracked down in our more technologically advanced future. Gaining an understanding of a black hole allows for a greater understanding of the concept of space time and maybe gives us a grasp of both science fiction and science fact. Hopefully, all the clarification will come by the close of this essay. A black hole is probably one of the most misunderstood ideas among people outside of the astronomical and physical communities. Before an understanding of how it is formed can take place, a bit of an introduction to stars is necessary. This will shed light on the black hole philosophy.   Ã‚  Ã‚  Ã‚  Ã‚  A star is an enormous fire ball, fueled by a nuclear reaction at its core which produces massive amounts of heat and pressure. It is formed when two or more enormous gaseous clouds come together which forms the core, and as an aftereffect the conversation, due to that impact, of huge amounts of energy from the two clouds. The clouds come together with a great enough force, which a nuclear reaction ensues. This type of energy is created by fusion wherein the atoms are forced together to form a new one. In turn, heat in excess of millions of degrees Fahrenheit is produced. This activity goes on for eons until the point at which the nuclear fuel is exhausted. Here is where things get interesting. For the entire life of the stars, the nuclear reaction at its core produced an enormous outward force.

Cola Wars Continue: Coke and Pepsi in 2010 Essay

Read and Apply: Michael E. Porter (2008), â€Å"The Five Competitive Forces that Shape Strategy†, Harvard Business Review, (January 2008), pp. 2-17 Assignment Questions (AQ) (a) Why has the soft drink industry been so profitable for concentrate producers? Compare the economics of the concentrate business to the bottling business: why is the profitability so different? [50% points] The soft drink industry has been extremely profitable for Concentrate producers. When we study the 5 forces analysis, we come to a conclusion that almost all the forces have contributed significantly in this massive profit generating mechanism. Threat of new entrants is low and there are multiple high barriers to entry. Despite the low cost of establishing a concentrate production plant, the producers have to develop exclusive relations with bottling plants and support them in marketing research, advertising and setting up distribution channels which is difficult for new entrants and require huge capital infusion. Bargaining power of Buyers used to be negligible as concentrate producers used to make bottlers abide by fixed price contracts which made them operate on razor thin margins. After adoption of incidence pricing, the bottling plants renegotiated for different distribution channels and different product ranges as the bargaining power shifted and the prices were increased based on consumer price index and inflation. But this bargaining power was kept in check since concentrate producers did not allow a bottling plant to gain significant market influence and they regularly bought out bottling plants to maintain their control.(Exhibit 3b) Bargaining power of suppliers was minuscule since all products are basic commodities like sweetener, caffeine and color with multiple suppliers who do not hold much bargaining power with a large corporation. Threat of substitute product is suppose to be high since there are a variety of substitutes available which meet the end purpose of quenching the thirst and consumer being open to healthy or low calorie substitutes like tea, juice or energy drink. But the conventional concentrate producer has diversified its product portfolio to meet all demands and keep its consumer base loyal. Also strengthening distribution networks and creating advertisement campaign has led to consumer retention.(Exhibit 8) Competition is high since major brands competing are Coca cola and pepsi who compete at every level, from product range and bottling plants to retailer selection and advertisement. Both concentrate producers are have deep pockets to execute swift decisions and they have adopted similar strategies to gain market share and consolidate. They have a staggering market presence controlling nearly 3/4th of the market and they have surgically acquired or contained all other competitors.(Exhibit 2) By the 5 force analysis, it is visible that the immense market experience and availability of funds had led concentrate producers to use almost all the forces in their advantage to maintain high profitability. In contrast to the concentrate producer, the bottling plants operate on one-third of the profit margin percent, this can be explained by the contrasts in the economics using the 5 force analysis for bottling plants. Threat of new entrants was traditionally low since high capital requirement acts as as high barrier of entry but the threat from the concentrate producer entity emerging as a bottler is high ever since they have started vertical integrations by providing concentration at lower rates for better margins to self-owned entities. Bargaining power of buyers is high since bottling plants have no unique value proposition and they compete with identical competitors for a vastly segmented market. They conduct extensive negotiations with different channels on stock, pricing and space. They develop complex price strategies for maintaining exclusive contracts with nation wide restaurant chains. They have to bid for higher presence among mass merchandisers and retail stores. They also have to provide low-margin fountains and vending machines services to sustain market presence. Threat of substitute is low among bottling plants since they have invested a huge capital on set-up, operational efficiency and R&D. They have a established ground of operations which cannot be easily substituted and they enjoy massive support from concentrate producers in supplier contracts, marketing research and advertisements Bargaining power of suppliers is average where commodities like packaging material and sugar can be obtained easily while concentrate producers control prices due to high dependency on them. But due to the reciprocity nature of dependency, concentrate producers extend advertising support, marketing surveys and strategic integration to loyal bottling plants to focus on volume and carry a wider range of products. The variation of business economics where bottling plants face price constraints, negotiations with every supplier at an individual level, cut-throat competition, high operating costs and an increasing threat of being acquired by the concentrate producer hits the profitability of the bottlers and gives a huge edge to the concentrate producers. (b) How would you characterize the nature of the competition between Coke and Pepsi and how has it impacted the profits of the US carbonated soft drinks (CSD) industry as a whole? [20% points] Coca-cola had maintained high profitability acting as a monopoly since its inception since it did not face any competition. When Pepsi entered the market as a prominent player, it struggled to gather market traction but after the â€Å"Blind taste test† it became a real competitor. The nature of competition has been fierce ranging from better positioning at a single store, to going beyond international borders. Although both the companies have adopted similar strategies, the timing and focus has led to significant success and more significant failures. Some major initiatives by Coca-Cola were developing infrastructure in European countries and Asia which paid heavy returns. It was also a pioneer in introducing new flavors and brands(Exhibit 2) which sharply increased its market share and vertical integration by acquiring bottling plants for better margins(Exhibit 3a) which resulted in stellar financial performances. Pepsi on the other hand gained significant domestic US market when Coca-cola focussed internationally, it was first to get exclusive contracts with restaurant chains and introduce bigger family-size bottles. It also led diversification by transforming into a beverage and food giant by acquiring Frito-Lay, Gatorade and Lipton. Pepsi Bottling Group optimized its operations and maintains a higher % profit/sales over CCE till date(Exhibit 3b). Both companies have also made big mistakes like Coca-cola introducing â€Å"New Coke† and Pepsi giving first-movers advantage to Coke in international markets. Also engaging in a bitter price wars saw their balance sheets in red(Exhibit 5). But they have also worked excellently in rectifying their mistakes like Coke diversifying by acquiring Minute-Maid and Vitamin water drinks. Since over half of Pepsi’s sales were domestic and Coke already had a lead in the International market, Pepsi focussed on markets still up-for-grabs like China, India, Africa and Middle-east. It has since gained significant market share in emerging economies after learning its lesson. Recently, both the companies have undergone significant media bashing with environmental concerns of the PET bottle, health and obesity uproars and sugary content in CSDs, so they have realized the shift in market focus to non-CSDs and diet soft drinks(Exhibit 7). New strategies include more focus on these drinks and both companies are looking to leverage their existing market domination to gain a better market shares and higher profits since margins on these drinks are much higher than CSDs. (c) Compare and contrast the structure and profitability of the emerging non-CSD industry with the key aspects of the traditional CSD industry structure that you covered in part (a). Can Coke and Pepsi repeat their success they had with CSDs in the non-CSDs industry, or will a new competitive landscape & dynamic emerge? [30% points] In late 1990s the soft-drink industry showed signs of permanent shift as the demand for carbonated soft drinks began to fizzle out(Exhibit 7) due to the rising health concern with obesity, high sugar content and perceived risks of high-fructose corn syrup. Diet sodas had already caught a lot of attention and they were quickly replacing conventional sodas, Coke and Pepsi broadened their product range by offering more Diet and herbal drinks. Pepsi was more aggressive in this transformation by acquiring Gatorade and Lipton which outsold Coke products in these categories, Coke followed suit by acquiring EnergyBrands, its largest acquisition ever, but Pepsi maintained a commanding lead in non-carb segment. Both companies also launched bottled water which is the largest sector in non-CSD market by volume(Exhibit 9) The structure and profitability in an emerging non-CSD industry has dynamics very different from the conventional CSD industry which has been played out and matured. The stark contrasts that the structure of this industry lies in the fact that this market is very young and entry of new products changes its dynamics rapidly. The threat of new entrants in this market is very high as concentrate production does not require a lot of investment and innovative products attract a lot of clientele which have led to a stronger position among competitors like Nestle, Unilever and DPS. The bottling plants have strengthened their position in this sector as they have not led Coke and Pepsi influence this market completely. They have been reluctant in introducing non-CSD products as they have no brand loyalty and their existing infrastructure does not support new products. Setting up new infrastructure and pressure from concentrate producers to increase non-CSD turnovers require higher operation costs and lesser profit margins. Concentrate producers are building better relationships with independent bottlers to push non-CSD and alternate drinks since they have much higher margins than CSD(Exhibit 10), concentrate producers are willing to assist bottling plants and they started selling finished goods to bottlers. They have also leveraged the company owned bottling plants by purchasing at lower prices and even marketing directly to retail chains to gain higher profit margin and gain market penetration It is most likely that Coke and Pepsi will repeat their success with this new industry like they did in CSDs for the first and foremost reason that these companies are financially very strong and they have the ability to acquire or contain an emerging competitor. Also they have invested and will continue to invest in understanding the market, so they have established a market trend analysis and they are prepared to tackle upcoming threats by taking the appropriate action. That is the reason that Coke and Pepsi are directly competing with every new product launched in this category and gaining popularity like tea, water or energy drinks. Early diversification in products has strengthened their brand equity which they can leverage in gaining further control in the non-CSD market. Another reason that these companies are likely to succeed is because of vertically integrated network that they have established from manufacturing concentrate to marketing to retailers, they have exclusive contracts with bottling plants and they have spent decades perfecting the distribution network. They can introduce new products in this chain with much more ease and effect rather than new players developing an entire new network. Lastly, since the market in US is moving faster towards non-CSDs than the rest of the world, Coke and Pepsi have gained experience in tackling this change and then they can apply it to the international markets and be the driving force in influencing emerging economies due to their vast strategic global presence.

Essay about Customer Service Representative Morale

A business seeks to make a profit by providing customers with goods and services. The success of the business is in the quality of the goods and customer service. Management and leadership styles have a great impact on the working environment and employees’ motivation. The working environment also affects both management and other employees’ motivation, which in turn influences the overall progress and well being of the organization. It all comes down to keeping employees enthusiastic and energized by developing a leadership style that will build teamwork and growth for the organization. nbsp;nbsp;nbsp;nbsp;nbsp;The managers’ leadership style contributes directly to the employees’ motivation and work satisfaction. There are many†¦show more content†¦This changes the working environment; making it an environment with a lot of team working, where each employee feels that he plays an essential role in the well being of the business. The free-reign style of leadership is the most lenient style, in which the employees have the complete freedom by having the right of making the final decision-making. When assigned tasks, they finish them using their desired method, making the final decision and adding any innovations. The leader creates a very friendly environment where each subordinate is accountable for his job, without the involvement of the leader, except in some situations. However, the manager in this case adopts this style of leadership when there is great honesty and trust between the employees and managers. Ideal leaders follow the motivatio nal theories to enhance the working environment and to make the employees not only satisfied, but also highly motivated. Employees motivation is the force that initiates, directs, and sustains personal behaviors and actions, which is the force that moves employees and managers to higher performance. There is a multitude of reasons an employee will remain within a given company. High pay, excellent benefits, job security, and the ability to retire within a company are among the most sought after components of the perfect job. Unfortunately, any one of these attributes alone is not enough toShow MoreRelatedJob Design And Hrm : Case Study Essay1260 Words   |  6 PagesUniversity September 17, 2016 Job Design and HRM The customer contact center, also referred to as a call center, is the primary method for clients to interact with their customers on an immediate basis. As a result, the call center agent typically sets the expectations that the customer will receive with the company. Therefore, it is important to staff the center with professional and knowledgeable customer service representatives. Specifically, It is essential that call center personnel haveRead MorePrinting Futures With Inc.1424 Words   |  6 Pagesdowntown Vancouver, BC. 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