Effective Human Resource Planning Essay

The key to effective human resource management is human resource planning 1.0 Introduction Human Resources (HR) Management is a multifaceted function. This entity has an important place within companies in helping key personnel decide on the best staff for their needs, among other things. Sometimes, the employees chosen are full-time employees already working for the company or they could be contractors. Regardless, the goal of HR Management is to choose the most qualified person for the job. Again, HR Management is a group of professionals that wear many hats, some of which include employee benefits and compensation, hiring and terminating employees, and managing personnel policies and employee records. While smaller companies will often perform the tasks of HR Management on their own, most, larger corporations choose to hire professionals to oversee the entire HR department so we can say that the key to effective human resource management is human resource planning, as it is stated by Mark and Cynthia, it involves strategic plans, then devising ways to meet these objectives . In this essay I will try to focus on strategic planning which is a major factor of planning. 2.0 Aims of strategic plans The history of strategic planning begins in the military. According to Webster’s New World Dictionary, strategy is â€Å"the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy† (Guralnic, 1986). In an address to the strategic planning workshop director-general of kwazulu-Netal RK Sizani said â€Å"employees must be able to advise, facilitate, support, consult, guide, monitor, resolve disputes and recommend strategic interventions to government and departments. They must be capable of producing rules, procedures, norms, frameworks, standards, draw common plans and goals which will enhance co-ordination. They require people who are experienced and somewhat capacitated and not junior entry  level officers.† As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product, and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to: â€Å"ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs†, that is, neither overstaffed. The second area should be about identifying which of these plans and strategies are so fundamental that there must be clear plans to address them before the organisation can achieve on any of its goals. These are likely to include: * Workforce planning issues * Progression planning * Staff skills plans * Motivation and fair treatment issues * Pay levels designed to recruit, retain and motivate people * A grading and remuneration system which is fair * Employment issues which impact on staff recruitment, retention, motivation etc. * A performance management framework – which is designed to meet the needs of all sectors of the organisation. * Career development framework – which look at development within the organisation at equipping employees with â€Å"employability† so that they can cope with increasingly frequent changes in employer and employment patterns * Policies and framework- to ensure that people development issues are addressed systematically: competence frameworks, self-managed learning etc. The HR strategy will need to show that careful planning of the people issues will make it substantially easier for the organisation to achieve its wider strategic and operational goals. 3.0 Recruitment of staff Recruitment should be preceded by an analysis of the job to be done (i.e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage; * In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process). * Effectively, selection is ‘buying’ an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection. Equally some small organizations exist to ‘head hunt’, i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the ‘cost’ of poor selection is such that, even for the ordinary day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants. 3.1 The main sources of recruitment are: * Internal promotion and internal introductions * University appointment boards; * Agencies for the unemployed; * Advertising (often via agents for specialist posts) or the use of other local media (e.g. commercial radio). The organization put its trade mark for rapid attraction and it must take care not to offend the sex, race, etc. antidiscrimination legislation either directly or indirectly. Interviewing can be carried out by individuals (e.g. supervisor or departmental manager), by panels of interviewers or in the form of sequential interviews by different personal skills techniques to aid judgment include selection testing for: * Aptitudes (particularly useful for school leavers); * Attainments; * General intelligence. (All of these need skilled testing and assessment.) In more senior posts other techniques are: * Leaderless groups; * Command exercises; * Group problem solving. (These are some common techniques – professional selection organizations often use other techniques to aid in selection.) Training in interviewing and in appraising candidates is clearly essential to good recruitment. Largely the former consists of teaching interviewers how  to draw out the interviewee and the latter how to rate the candidates. For consistency rating often consists of scoring candidates for experience, knowledge, physical/mental capabilities, intellectual levels, motivation, prospective potential, leadership abilities etc. 4.0 Analysis 4.1 Setting the strategic direction This process focuses on aligning human resource policies to support the accomplishment of the Company’s mission, vision, goals and strategies. The business’ goals sit at the heart of any HR plan and in order to align business and HR you need to answer one key question, â€Å"Can your organisation’s internal capability deliver the organisation’s business goals?† Many organisations cite their people as their primary source of competitive advantage. Successful companies continuously identify and adopt innovative human resource management policies and practices to sustain that advantage. More importantly, they structure work and design training, performance management, pay, and reward policies to help members of the organization succeed in achieving desired organizational outcomes. In other words, they integrate and align HRM policies and practices to reinforce employee behaviors that can best realize the leaders’ strategic intent. In the most successful companies, the set of policies and practices that collectively make up a company’s HRM system is the critical management tool for communicating and reinforcing the leaders’ strategic intent. 5.0 Conclusion While Human resource management strategies must be developed to support the achievement of the organisation’s objectives, it is a two-way process. These strategies can themselves be critical inputs in determining the strategic initiatives for the organisation. A fatal error, however, is to develop and implement Human resource management strategies without thinking of the  organisational strategic planning process. A common mistake is the development of workplace skills plans which are not linked to any strategic goals or objectives or which have no affirmative action components. So, Human resource planning is the key to effective human resource management. 6.0 References 1. http://www.searchbites.com/docs/HR_MANAGEMENT.asp (28th December 2004) 2. Mark Lengnick-Hall and Cynthia Lengnick-Hall. (22 December 2003) Human Resource Management in the Knowledge Economy: New Challenges, New Roles, New Capabilities, 3. Guralnik, D. (Ed.). (1986). Webster’s New World Dictionary (2nd ed.). Cleveland, OH: Prentice Hall Press. 4. R K Sizani, Workshop of the on implementation and action an address to the strategic planning, (02nd December 2001) 5. Behrman M, (2004), A guide to strategic human resource planning, Workinfor bulletin, south Africa 6. http://www.accel-team.com/human_resources/hrm_02.html, (31 December 2004) 7. A Strategic Human Resource Management System for the 21st Century. Naval Personnel Task Force, September 2000, Story Number: NNS040406-02, 04th June 2004 8. Human Resources, Pay & Trends Bulletin ,The employers’ organisation for local authorities in the south east,(June 2004),

Alejandro Flores Essay

Write a 2 – 3 page paper that addresses the following: 1. How do Senor Flores, Senora Flores and Dr. Jean view this situation from totally different perspectives? 2. Why might Senora Flores have chosen to consult an espiritista rather than call the clinic when Alejandro was not getting better? 3. Which of the normative cultural values described in the Lecture might apply to Alejandro’s case? Please explain. The Puerto Rican culture has many beliefs involving individual roles within the family. Many believe that the male(s) of the family should work to provide the basic needs of the household: paying rent, bills, paying for groceries, automotive repair, and the like. Similarly, the female(s) of the house should be the primary house keeper and care giver. Familismo holds a large part in the Puerto Rican culture, and the advice of the elder family members is taken very seriously. Religion also plays an integral role in Puerto Rican culture, and some believe illness is the result of sin, punishment, or spiritual discomfort. These beliefs tie together to create culturally diverse situations regarding patients health care, and must be taken into consideration when discussing treatment plans. Senor Flores views this situation from the machismo perspective. His view is to he should be working to provide the means for his family to survive. By taking time off of work to attend Alejandro’s medical appointments, he feels that he is neglecting his cultural responsibility of working hard to meet the needs of his family as a whole. Additionally, he does not believe that the modern treatment has a positive effect on Alejandro’s condition, and he portrays that he would rather allow his mother-in-law to play a more active role in Alejandro’s care. He feels as though every time he is at the appointments, the clinical staff is ostracizing him and attacking him for smoking. Senora Flores is upset about Alejandro’s health condition, and appears to be reaching out for help in different directions. She does not want to give Alejandro all of the medicine he is prescribed, and is taking her mother’s advice by seeking the help of an espiritista. When she arrived to the appointment late, she was greeted poorly because of the tardiness, and doesn’t understand why the clinic staff is rude with her. Many Puerto Ricans believe that tardiness is accepted, even common, and that having a relaxed attitude regarding time is reasonable practice. Additionally, she is frustrated with the language barr ier that presents itself during the appointments. The clinic is providing her so much information, and she feels belittled by the staff when she may not comprehend all of the information they are providing her. She is concerned that Alejandro will be chastised due to the perception that he is weak and unhealthy. She is worried that nothing she can do will better his condition and prayers are not helping. Dr. Jean is concerned with Alejandro’s progress due to the misuse or absence of medications and the lack of Senor Flores’ interest in tobacco cessation for the sake of his child’s health. She desires to help the family, and has given her personal phone number to be accommodating, but instead Senora Flores confided in a housekeeper instead of the doctor. The family’s tardiness is an issue for Dr Jean, but this doesn’t bother her as much as not showing up for the appointment at all. Senora Flores may have consulted with the espiritista due to the lack of confidence in the medication Alejandro is prescribed. This combined with the clinical staff’s attitude toward her, and the cultural belief that illness can be caused by spiritual discomforts, could lead to Senora Flores’ visit to the spiritual healer. Espiritistas use prayers to attempt to rid the patient of spirits causing the disease. Also, Senora Flores’ mother suggested the espiritista visit, and the words and advice of the elder is highly respected in the Puerto Rican culture. All of the normative cultural values present themselves in this module, but the one that applies the most in my opinion is Fatalismo. In the study, the family seems that the fate of Alejandro’s illness is predetermined and nothing they have done or will do to ease h is symptoms will work effectively. 2010 Children’s Mercy Hospitals and Clinics and Children’s Mercy Family Health Partners Cross Cultural Resource Guide pgs. 28-29 Retrieved on April 15, 2012 From: http://www.fhp.org/fhpdocs/CrossCulturalResourceGuide.pdf ELL Assessment for Linguistic Differences guide for Nonverbal Communication. Retrieved on April 17, 2012 From: http://www.ldldproject.net/cultures/puertorico/differences/nonverbal.html

Foundations of Human Development Worksheet Essay

Write the key features, listed below, into the correct life stage of development and most significantly affected age range. In your own words, provide an explanation of the term and how it affects the developmental stage. An example is provided for reference. For the purposes of this assignment, field marked N/A do not need to be completed. Teratogens Attachment ADHD Temperament Preoperational Thought PeriodIn-Vitro Fertilization ConservationSelf-Concept Refined motor skillsZygote Positive Reinforcement Sensorimotor Period Mobility Biological DevelopmentPsychological or Cognitive DevelopmentSocial DevelopmentConception and Pre-birthExample Teratogens are substances, including drugs, that cause malformations in the fetus (Zastrow Kirst-Ashman, 2010, p.54). For example, the text states that teratogens are Certain drugs affect biological development by causing malformations of body parts and organs. Newborn children of drug addicts, for example, experience a number of potential developm ental problems such as low birth weight, muscle tremors, and physical birth defects (Zastrow Kirst-Ashman, 2010, p.54). A zygote is a single cell formed by the combination of the genetic material in a womans egg and sperm. In-Vitro Fertilization is a process in which eggs are removed from a womans body, fertilized with sperm in a laboratory dish, and then implanted in the womans uterus (Zastrow Kirst-Ashman, 2010, p.90). N/A N/AInfancy The central theme of attachment theory is that primary caregivers who are available and responsive to an infants needs allow the child to develop a sense of security. Bowlby believed that the earliest bonds formed by children with their caregivers have a tremendous impact that continues throughout life. He suggested attachment also serves to keep the infant close to the mother, thus improving the childs chances of survival.Temperament is each individuals distinguishing mental and emotional nature that results in a characteristic pattern of responses to people and situations (Zastrow Kirst-Ashman, 2010, p.125). There are three broad categories of infant temperament that are often used as guidelines for determining normal infant behavior. The three categories of infant temperament are easy, slow-to-warm-up, and difficult. N/AChildhood ADHD, a psychiatric diagnosis, is a syndrome of learning and behavioral problems beginning in childhood (Zastrow Kirst-Ashman, 2010, p.146). Children often fail to give close attention to details and make  careless mistakes in their schoolwork or in other activities. Also, they have difficulties organizing their tasks and activities. They are easily distracted by extraneous stimuli and they tend to be forgetful in their daily activities Piagets second stage of cognitive development, the preoperational thought period, extends from approximately ages 2 to 7 (Zastrow Kirst-Ashman, 2010, p.116). Increased use of verbal representation but speech is egocentric. The beginnings of symbolic rather than simple motor play. Can think about something without the object be ing present by use of language. Conservation is the idea that a substance can be changed in one way while remaining the same in another (Zastrow Kirst-Ashman, 2010, p.115). This means that the child understands that although the appearance of something changes, the thing itself does not. Fine motor skills are necessary to engage in smaller, more precise movements, normally using the hands and fingers. Fine motor skills are different than gross motor skills, which require less precision to perform. The sensorimotor period identifies a child as they progress from simple thoughtless reflex reactions to a basic understanding of the environment (Zastrow Kirst-Ashman, 2010, p.116). Behaviors are limited to simple motor responses caused by sensory stimuli. Children utilize skills and abilities they were born with (such as looking, sucking, grasping, and listening) to learn more about the environment. Baumeister provides the following self-concept definition the individuals belief about himself or herself, including the persons attributes and who and what the self is (Baumeister, 1999). The self-concept is how we think about and evaluate ourselves. To be aware of oneself is to have a concept of oneself.Positive reinforcement refers to positive events or consequences that follow a behavior and strengthen it (Zastrow Kirst-Ashman, 2010, p.169). Successful positive reinforcement results in a behavior occurring more frequently in the future. It can make learning fun, increase participation and cooperation, and help children learn valuable skills. Because of their mobility, children need constant supervision. Their interest in exploration, falling down, and getting into dangerous situations are all constant possibilities (Zastrow Kirst-Ashman, 2010, p.67). Baumeister provides the following self-concept definition the individuals belief about himself or herself, including the persons attributes and who and what the self is (Baumeister, 1999). Its psychological development due  to self-evaluation, but its also social development due to the benchmark we judge others by. References Baumeister, R. F. (Ed.) (1999). The Self in Social Psychology. Philadelphia, PA Psychology Press (Taylor Francis). Zastrow, C. H., Kirst-Ashman, K. K. (2010). Understanding Human Behavior and the Social Environment (8th ed.). Mason, OH Cengage Learning Foundations of Human Development Worksheet

A SYSTEM TO MANAGE THE POSTGRADUATE COMPUTING PROJECTS Literature review

A SYSTEM TO MANAGE THE POSTGRADUATE COMPUTING PROJECTS - Literature review Example In order to perform configuration management, this research indicates that Capability Maturity Model Integration (CMMI) version 1.1, and the Project IN Controlled Environment (PRINCE) version 2 calls attention to the proper execution of Configuration control activities because of their criticality for the successful operation of the product in the deployment environment. Focusing on the similarities and correlation between these two initiatives, author has mapped PRINCE 2 Configuration Management Component to the CM process in continuous representation. To achieve good transformation results there is a need to apply appropriate software metrics on each and every sub process and sub practice. According to the author’s idea, mapping between two initiatives is never so easy because it requires the specification of suitable granularity level of maps between models. On high level it may be hard to get sufficient understanding of commonalities and variations while on a low level it may result in a large number of connections, make it hard to achieve the appropriate mapping. The mapping performed according to the proposed approach shows that PRINCE 2 and CMMI 1.1 continuous representation deal with the project management by following an improved process management approach. Principally the configuration management activities in aforementioned standards are normally correlated to each other at higher granularity level. It is nearly impractical to achieve one to one mapping between these two and low granularity level because of differences in process improvement approach adopted by CMMI at optimizing level (Luqman, 2006). (Dr. Asim ur rehman et al., 2007), highlight the importance of the understanding of mangers about the strategies being adopted for the management of different aspects of the project. According to their views, Managers while managing a project, tend to show the preference for a specific project management strategy. They find it difficult to manag e another project if a dissimilar project management is adopted. Because they usually are in short of knowledge about how much commonality exists between the preferred and the new required project management methodology. This research is basically focused towards that enhancement of understanding of managers by providing highlighting different aspects of different project management frameworks. Results can be useful by intelligently combining powerful features of different methodologies. To perform the analysis five major project management methodologies, including PRINCE2, have been compared with PMBOK. Prince2 methodology has certain shortcomings when compared with other methodologies. PRINCE2 is not designed to promise proficient results in short period of time. It requires deep concentration from the managers to get the promised results and also it is insufficient if the project requires higher degree of contract and people management. This research also highlights certain commo nalities between PMBOK and PRINCE2 such as the documentation must provide sufficient information to suit the occasion. Usually it does not provide information about how to perform a specific task or use any of the tools described. They are intended to provide a brief sketch of processes involved, their

Specialist Community Public Health Nursing Essay

Specialist Community Public Health Nursing - Essay Example rience depression and other health related issues that even cause death in later stage (Egton Medical Information Systems Limited, 2015; Musingarimi, 2008). Over the previous twenty years, the rate of obesity throughout the globe has increased by a considerable extent. Based on various researches, it can be ascertained that the rate of obesity among the adults has increased by three to four times since the year 1980. However, it has become a worldwide challenge for the government to combat the disease because of the complexities associated with the treatment procedures of the same (Guardian News and Media Limited, 2015). Notably, there are certain public health policies that have been formulated by the UK government in order to tackle with the disease. Apart from this, the health visitors of the UK are also playing a major role in preventing obesity by creating greater awareness about the implications of this health disorder amid the people (Waumsley, 2011). Thus, urgent global action and conduct of effective leadership practices are required to support the respective nations in coping up with such a life threatening health disorder (1BBC, 2015). Obesity has become a major global health challenge, as it is growing at an increasing rate throughout the globe. Based on a survey conducted, it is estimated that in excess of three million people of the world are suffering from this health disorder. The condition of obesity in a person is measured with the help of Body Mass Index (BMI) approach, which measures the proximity of this disorder within the individuals by measuring their height and weight. Specially mentioning, the people of the developed countries are mainly affected with this adverse health condition, but in recent times, the issue has become an increasing problem even for the developing countries. In the year 2010, about 3.4 million deaths were reported worldwide that caused due to obesity. Certainly, the rise in the rate of obesity has led the respective

Write about the arguments for and against developing a genetic Essay

Write about the arguments for and against developing a genetic fingerprint profile for all members of society - Essay Example The fragments produced are invisible at this stage and so the fragments are transferred to a nylon membrane using southern blotting which involves adding a layer f absorbent paper to the nylon membrane. The DNA is then drawn upwards by capillary motion. The DNA fragments are then denatured by heating to give single stranded DNA. A radioactive isotope f phosphorus with a base sequence identical to one f the VNTR sequences is used to locate the particular bands. This is also known as a DNA probe and it binds to its complementary single stranded DNA. Any excess probe is washed off. The probes are accurately located by placing X-ray film over the nylon membrane. DNA fingerprinting is a method that compares the fragments f DNA. DNA fingerprinting was first invented to detect the presence f genetic diseases. Today, DNA fingerprinting is used in different ways. DNA is analyzed using a Southern Blot, which allows scientists to observe the base pair patterns. DNA fingerprinting can be used in a few different ways. First, to find out if the child belongs to a person DNA fingerprinting may be used. When a child is born, it inherits the VNTR's from the father and the mother. VNTR's are variable number tandem repeats, which is repeated sequences f base pairs. The VNTR patterns are used to determine the father or mother.

Fashion and Utopia-Ann-Sofie Back Essay Example | Topics and Well Written Essays - 2500 words

Fashion and Utopia-Ann-Sofie Back - Essay Example The essay "Fashion and Utopia-Ann-Sofie Back" analyzes the concept of the fashion by Ann-Sofie Back. The concept of fashion in Paris is no longer popular and this has essentially given rise to a genre of anti-fashion, which refers to the beginning of something new. The relationship between the â€Å"fashion-creator and imitator† is undergoing change and instead of the common people on the street following the designs of haute couture, the pattern is almost the reverse, fashion flows from the street to the â€Å"salons of haute couture† where the adoption and imitation take place. The public follows the fashion trend, which flows, from the characteristics defined by their sub-cultures. The avant-garde essence of fashion comes form the notion of â€Å"fashion beyond fashion† which creates fashion out of non-fashionable components. From 1980s onwards the period of fashion creators are coming to an end and the designers favor something, which lie outside the traditio nal fashion trends. This also implies that fashion no more creates or enhance the divide between economic classes or age groups and genders. In fact, â€Å"nothing could be more out of date than to clothe oneself as â€Å"woman†, as â€Å"man† or as â€Å"lady† . This avant-garde fashion is innovative and anti-idealistic in nature, which looks forward to give new shape to beauty and perfection. The modern avant-garde derives the basics from the old one especially in terms of going against the classical definition of fashion, popularized as haute couture.

Liyuna-HBS-Essay 1 3 4-1011-ec19970 Essay Example | Topics and Well Written Essays - 1250 words

Liyuna-HBS- 1 3 4-1011-ec19970 - Essay Example With my effective communication skills and self confidence I convinced the team’s coach on the idea and got the lead role in the new form of dance. Height turned to be a limiting factor once again, as for my passion in modeling. Though I could use my height as an advantage to be a part-time model in high school, I didn’t meet the height requirements to be a model when it came to the university level. However this couldn’t stop me from achieving my dream towards modeling, as I turned myself into a coach and a team builder. I not only successfully chased my dream but also helped others to do the same by establishing university’s first modeling association. This personal accomplishment added much to my confidence in turning the impossible to possible. Accomplishments have a better value when it serves towards ones social commitment. In February, 2008 my neighborhood in Tianjin saw agitations from small shop owners as the government had forcefully relocated them as a part of the Olympics project .Most of them had entered into long term contracts with their landlords and had spent ample money on restructuring the shop which was not compensated for. However their protest was hardly leading towards any result. In spite of joining them in the protest which lacked a direction, I decided to use my negotiation skills developed in business environments to intervene in the issue. I discussed in detail the problems of the shop keepers which were wide and vivid ranging from location to inventory. On the other side I analyzed the government’s blueprint of the new street and time schedule for reconstruction .Resultantly I developed a compensation plan which was approved by the shop keepers as well. This professional approach made room for discussion and finally the plan got approved. The accomplishment was made possible as I could successfully transfer my business skills into a social situation and this is counted as substantial because it

Cognitive and Language Development Essay Example | Topics and Well Written Essays - 500 words

Cognitive and Language Development - Essay Example (Jumpstart Tulsa, 2009). Although the lower portion of the brain is well developed at birth to support a child's initial survival, the upper portion is not. This portion contains a brain structure called the cerebral cortex which is responsible for human attributes such as memory, attention, perceptual awareness, thought, language, and consciousness. Synaptic connections in the cerebral cortex are developed and peaks during elementary school age. Beginning middle school age to adolescence, the number of synapses decline to adult levels (Zero to Three, 2009). According to B.F. Skinner, the father of behaviorism, language is learned through reinforcement and imitation. According to the behaviorist theory, like any other behavior, language has to be taught and positively reinforced otherwise, it cannot be learned. This theory is not widely accepted because it does not consider the biological aspects of language acquisition. According to Chomsky and his nativist theory, children have an innate language acquisition device and that it is in their nature to learn a language because of the presence of language areas in the brain, the sensitive period for language development and a child's ability to invent a new language system.

Bermuda triangle Essay Example for Free

Bermuda triangle Essay The Bermuda Triangle, also known as the Devils triangle is said to be one of the most dangerous and mysterious areas of the ocean known to man. It has been held responsible for the disappearances of over 2000 vessels, 75 airplanes and many innocent lives in the past 3 centuries. But the question is how? What really happened in this deadly body of water? There are many theories about what is going on in the Bermuda Triangle. From human error, to the lost city of Atlantis all the way to paranormal activity and Extra Terrestrials. Today I will be talking to you about the mysteries of the Bermuda Triangle. The Bermuda Triangle is located between three main points in the Atlantic Ocean, San Juan, Puerto Rico, Miami, Florida and the Island of Bermuda. The triangle is formed by connecting an imaginary line between these three points with an area of the about 500,000 to 1,000,000 square miles. Flight 19 is said to be one of the first known flights to go down in the Bermuda triangle. The aircraft was filled with US naw avenger bombers on a training mission. When the plane went down, it was said that the flight leader was heard saying We are entering white water, nothing seems to be right. We dont know where we are, the water is reen, no white. This raised suspicion about whats really going on in the so called Devils Triangle. It is very possible that the plane had Just run into some bad weather, but some believe weather is not the cause of these vanishing planes. Im not saying I have come up with the answer to what is going on in the Bermuda triangle, but here are some reasonable answers I have come across; 1. Bad weather. The part of the Atlantic in which the Triangle is located is very close to the Caribbean Sea which tends to get many tropical storms. This could be the cause to all of these strange disappearances. Intense storms may be causing ships to sink or planes to crash. But bad weather is only one of the many theories people have come up with. 2. Human error and amateur sailors. The coast guards are said to get over 8000 distress calls a year, thats more than 20 a day! But most of the time, the issue is minor, running into a rough patch of water or a shortage of gas. . Traffic. There are many planes and boats that go through the Bermuda triangle every day. Because its so busy, vessels and planes could be crashing into each other and falling into the ocean below. 4. Underwater earthquakes. In shallow water, underwater earthquakes can cause sunamis in the far east of the triangle. (and) 5. The gas bubble theory. Scientists say that a high concentration of gas hydrates have been fou nd in the Bermuda area which causes the water to become less dense in small patches. This could cause ships to sink quickly without and trace. Believe it or not,some think the tragedies are caused by the lost city of Atlantis. Some even say that government is behind it. The government supposedly runs an underwater base called A. U. T. E. C. It stands for Atlantic Undersea test and evaluation center. It is located in the middle of the triangle where the naw tests new ubmarines, weapons and sonar. Some people think the government has been working with extraterrestrials and that A. U. T. E. C. is actually used for testing reverse engineered alien technology. Some also say the mythical lost city of Atlantis is causing these mysterious disappearances because ot a stone trail called Bimini road. Its supposedly part of the lost city and possesses advanced technology that is interfering with radio signals in vessels and aircrafts. These theories are more farfetched than earthquakes and amateurs but some think this could be the reason to the mysteries in the triangle.

SWOT Analysis Indian Pharmaceutical Industry

SWOT Analysis Indian Pharmaceutical Industry Strengths 1. India is regarded as having an edge over China in terms of qualified, English-speaking manpower and fair protection of intellectual property rights supported by well-developed judicial system. (Appendix IV gives more information on IPR status in India). 2. India has skilled scientists/technicians/management personnel at affordable cost leading to low cost of innovation/ manufacturing/capex costs/ expenditure to run cGMP compliance facilities and high quality documentation and process understanding. 3. The country has well developed chemistry, R D and manufacturing infrastructure with proven track record in advanced chemistry capabilities, design of high tech manufacturing facilities and regulatory compliance. 4. The healthy domestic market with rising per capita expenditure is another significant strength enabling achievement of economies of scale. The country also has a strong marketing distribution network. 5. India is considered a desirable destination for off shoring of data management functions for clinical trials and also due to its rich biodiversity and strength in Chemistry which are essential for drug discovery. 6. The country has significant ability to circumvent API Patents. India has filed a number of non-infringing process patents. The country has a recent success track record in circumventing formulation patents. Proven Legal skills to evaluate IP and commercial strategies are available at least in select top companies. 7. The present domestic regulatory environment though in need of further improvement has been conducive to the growth of an emerging pharmaceutical industry. Weaknesses 1. Low investments in innovative RD continue to be a major weakness of Indian pharmaceutical industry. 2. Diffused nature of the Indian pharmaceutical industry means that only about 20 to 30 companies are large enough to bear the transactions costs associated with sustained exports to and compliance with entry regulations of the developed markets. 3. Majority of companies lack the ability to compete with MNCs for New Drug Discovery, Research and commercialization of molecules on a worldwide basis due to lack of resources. 4. Strong linkages between industry and academia which are essential for growth of the industry is lacking in India. 5. Comparatively small domestic market size due to low medical and healthcare expenditure in the country. 6. The country has at times shown inadequate regulatory framework or compliance and enforcement regime, reflected in occurrences such a production of spurious or low quality drugs. 7. Competency in API/Formulation, intellectual property creation, facility design and maintenance, global regulatory affairs, legal intricacies, and managing international work force is limited to a few players among the big players. 8. Rapidly increasing costs of skilled manpower such as scientists/ regulatory compliance personnel / pharmaceutical lawyers/ international business development personnel is pushing up the cost of innovation. Ability to evaluate contracts/alliances etc., is available only in top companies. Significant lacuna in this area exists and companies are falling into traps created by the competitors. Institutionalisation of learning in the following areas is restricted: Regulatory affairs knowledge for different countries and continents Process and product patents procedures knowledge for different countries and continents. 9. Sales and marketing knowledge is inadequate due to lack of understanding of international Pharmaceutical marketing/pricing practices and market environment in various countries. 10. Inadequate manufacturing practices in comparison to those accepted in developed world such as change of API source, change of manufacturing locations, equipment etc, with out proven stability/ bioequivalence may be creating inadequate technical work force for exports. The national drug regulatory system though evolved substantially, has been in the need of strengthening its manpower and systems requirements. 11. Inadequate emphasis on Biosciences in education system leading to slower development in areas related to Biology giving away advantage to China. Opportunities India is faced with significant export opportunities, such as: i. US$40 billion worth of drugs in the U.S.A and US$25 billion worth of drugs in Europe are expected to go off patent soon. Assocham estimates that Indian manufacturers may capture 30 percent of that market. This translates to an opportunity of US$19.5bn which is significant considering the countrys current exports of approx. US$7.25bn. However the figures need to be appropriately deflated since Indian opportunity will lie in generics equivalent of branded or patented drugs, which would be cheaper. ii. Generic launches by Indian manufacturers have increased in the United States from 93 in 2003 to 250 by 2008. iii. Compulsory licensing provisions negotiated in the Doha Round, allows for countries to import cheaper generic versions of patented drugs in the interests of public health. Thailand and South Africa have already started such initiatives from which Indian firms have benefited. 2. Due to the cost advantage in contract manufacturing Research multi-national companies find it compelling to shift their production bases to countries offering such cost advantage. Typical of the industry which requires approval of manufacturing facilities by various drug regulatory agencies of the world involving a very high cost, once such business finds base in India it would continue with it for at least one half to two decades. 3. Licensing deals with MNCs for NCEs (New Chemical Entities) and NDDS (New Drug Delivery Systems) offer new opportunities for Indian manufacturers. 4. Marketing alliances for MNC products in domestic and international market is another emerging opportunity. 5. Contract manufacturing arrangements with MNCs is estimated at 10% of patented markets estimated at US$450bn which is approx. US$45bn. 6. India has a very high potential for developing as a centre for international clinical trials due to its rich diversity. 7. India can become a niche player in global pharmaceutical RD and possibilities exist for expansion of biotechnology generics (also known as bio-similars) and biopharmaceuticals. 8. There is a possibility of greater returns from an Indian entry into mature and more remunerative markets like Brazil, Japan, CIS, Russia, etc. 9. The Work Programme for the European Medicines Agency 2007 identifies greater co-operation with India especially in the field of traditional and herbal medicines and remedies. Emerging preference for traditional medicines and herbs in the developed markets including lifestyle products and food supplements also presents an opportunity for the country in traditional medicinal systems Herbal based products. 10. A rise in life expectancy generally, and increase in the population of the old, particularly in the developed world is causing higher expenditure from respective national health budgets compelling them to move to cheaper APIs and formulations which are Indias forte. 11. Unleashing of a plethora of preferential trading arrangements, both bilateral and regional, offers opportunities for India to negotiate preferential access to partner markets for Indian pharmaceuticals in the long term and in a sustainable manner. Threats 1. Product patent regime poses serious challenge to domestic industry unless it invests in research and development. 2. RD efforts of Indian pharmaceutical companies are hampered by lack of enabling regulatory requirement. 3. Drug Price Control Order puts unrealistic ceilings on product prices and profitability. 4. Export effort is hampered by procedural hurdles in India as well as non-tariff barriers imposed abroad. For example: i. Indian manufacturers are prevented from bidding for government contracts as US permits bidders only from countries that are signatories to WTO Agreement on Government Procurement. ii. Indian manufacturers have to submit separate state level applications for marketing drugs in the United States as there is no nation-wide system of application even where FDA approval has been received. 5. Lowering of tariff protection has increased competition in domestic markets resulting in erosion of profitability. 6. Mergers and acquisitions by foreign companies particularly multinational corporations of afew Indian generic leaders may completely change the direction of Indias pharmaceutical movement neutralising its thrust on generics and cost competitiveness. 7. The generics market in developed countries may be affected by a number of factors: i. The release of authorized generics by major drug manufacturers. ii. New mid-sized players, establishing themselves in the generics market. iii. Increased competition due to newer Chinese and East European manufacturers. (E.g. there has been massive state level investment by China in the biotechnology sector though at present India still has the edge due to IP laws.) iv. TAs entered into by the United States of America with third countries (e.g. the Morocco-U.S.A FTA) may be harmful to Indian pharmaceutical exports because of provisions for increases in patent terms, etc. The United States enters into a number of FTAs with different countries and while the exact text of these agreements differ from country to country, each of these agreements contains provisions which can be damaging to Indian exporters of pharmaceuticals partly also because of their provisions on patents. These FTAs contain a large number of provisions which increase patent terms for pharmaceuticals by allowing for patentability of new uses of discovered inventions and by increasing patent terms by taking into account the time taken to process claims (evergreening). These provisions go beyond TRIPS and hence it may not be possible to challenge these under the WTO Dispute Resolution process. However, the compatibility of these provisions with Article XXIV of the GATT needs to be examined. 8. Specific non-tariff and para-tariff barriers being increasingly adopted by other countries such as long transaction time taken for registration of drugs, insistence on completing long process for registration when the drug may actually have gone through the most rigorous process of registration such as the USFDA; insistence on allowing imports of only those drugs which are registered in some developed countries, etc. PORTERS FIVE FORCES MODEL (a) INDUSTRY COMPETITION The Indian Pharmaceutical Industry is highly fragmented with around 250-300 manufacturing and formulation units in organized sector which contribute to only 70% of the market share of the total sales in the country. The concentration ratio (proportion of total industry output by the largest firm in the industry) for the industry is very low. Also government subsidies have led to the proliferation of many small players. Since the Product Patents were not valid in the country till 2005, the differentiation in the product is very low. The key driver in this industry is the cost-competitiveness. After 2005, major MNCs like Pfizer GSK started introducing newer products in the market thereby increasing competition in the industry. Many small players that are focused on a particular region have a better hand on the distribution channel, making it easier to succeed, albeit in a limited way. An important fact is that, pharmaceutical is a stable market and its growth rate generally tracks the economic growth of the country with some multiple (1.2 times average in India). Though volume growth has been consistent over a period of time value growth has not followed in tandem. Earlier it was easy for Indian pharmaceutical companies to imitate pharmaceutical products discovered by MNCs at a lower cost and make good profit. But today the scene is different with the arrival of the patent regime 2005 which has forced Indian companies to rethink its strategies and to invest more on RD. Also contract research has assumed more importance now. (b) BARGAINING POWER OF BUYERS The unique feature of pharmaceutical industry is that the end user of the product is different from the influencer (read doctor). The consumer has no choice but to buy what doctor says. However, when we look at the buyers power, we look at the influence they have on the prices of the product. In pharmaceutical industry, the buyers are scattered and they as such do not wield much power in the pricing of the products. Due to the extremely fragmented nature of industry government policies like DPCO ( Drug Price Order Control), 1970 under which the power to control prices is with the NPPA ( National Pharmaceutical Pricing Authority) the low power of buyers does not have much effect on the manufacturers. Except in generic OTC medicines, the buyer does not normally switch medicines. (c) BARGAINING POWER OF SUPPLIERS The pharmaceutical industry depends upon several organic chemicals. The chemical industry is again very competitive and fragmented. The chemicals used in the pharmaceutical industry are largely a commodity. The suppliers have very low bargaining power and the companies in the pharmaceutical industry can switch from their suppliers without incurring a very high cost. However, what can happen is that the supplier can go for forward integration to become a pharmaceutical company. Companies like Orchid Chemicals and Sashun Chemicals were basically chemical companies who turned themselves into pharmaceutical companies. The fragmented nature of the organic chemicals industry prevents it from having much bargaining power over the manufacturers as the switching cost is low for the manufacturers. (d) BARRIERS TO ENTRY Threat of new entrants in the Indian Pharmaceutical sector during pre-2005 era used to be low as the capital requirement for the industry used to be very low from 1970s till 2005 because of the absence of product patents and heavy dependence on reverse engineering or Process Patent phenomenon but post 2005 it has become a huge burden on the part of new entrants to establish Manufacturing facilities of International Regulatory standards to tap the potential of generic exports and domestic consumption demand . That major barriers to entry are : The presence of economies of scale in manufacturing, RD, marketing, sales etc capital requirement financial requirements. The existing companies have advantage in terms of costs involved in launching new drugs formulations. The new companies would find it difficult to achieve this. Differentiation of products from the existing products in the market creating brand awareness in the minds of doctors pharmacists. New entrants will face difficulties in gaining trust of doctors/patients and they also need to develop efficient distribution channels preferred arrangements with doctors/pharmacists. Regulatory policies including patents, regulatory standards. The Indian Patent Act, 1970 recognized process but not product patents. The introduction of Product Patent 2005 of TRIPS part of WTO agreement has led to huge barriers for potential entrants. But to be noted it is unlikely to discourage new entrants, as market for generics will be huge in the near future as the demand for generics by all the developed economies has increased by leaps and bounds as their governments are drawing plans to effectively manage the health expenditure budget by switching from branded drugs to generic versions. (e)THREAT OF SUBSTITUTES This is one of the great advantages of the pharmaceutical industry. Whatever happens, demand for pharmaceutical products continues and the industry thrives. One of the key reasons for high competitiveness in the industry is that as an ongoing concern, pharmaceutical industry seems to have an infinite future. However, in recent times the advances made in the field of biotechnology, can prove to be a threat to the synthetic pharmaceutical industry. Also in developing countries like India, the traditional medicines also play a major substituting role. CONCLUSION This model gives a fair idea about the industry in which a company operates and the various external forces that influence it. These five forces of competition interact to determine the characteristics and the attractiveness of an industry. The strongest forces become dominant in determining profitability and become the focal points of strategy formulation. However, it must be noted that any industry is not static in nature. Its dynamic and over a period of time the model, which we have used to analyse the pharmaceutical industry may itself evolve. Going forward, we foresee increasing competition in the industry but the form of competition will be different. It will be between large players (with economies of scale) and it may be possible that some kind of oligopoly or cartels come into play. This is owing to the fact that the industry will move towards consolidation. The larger players in the industry will survive with their proprietary products and strong franchisee. In the Indian context, companies like Cipla, Ranbaxy and Dr.Reddys are likely to be key players. Smaller fringe players, who have no differentiating strengths, are likely to either be acquired or cease to exist. The barriers to entry will increase going forward. The change in the patent regime has made sure that new proprietary products come up making imitation difficult. The players with huge capacity will be able to influence substantial power on the fringe players by their aggressive pricing thereby creating hindrance for the smaller players. Economies of scale will play an important part too. Besides government will have a bigger role to play. PEST ANALYSIS To understand the implications of the environment on any industry it is imperative to study the four cardinal influencers on the industry namely Political, Economic, Social and Technological factors. It is rather unfortunate that in India these factors have a rather disproportionate influence on the functioning of a commercial organization. From the days of independence the business environment has been overly regulated by a handful of bureaucrats, middlemen, businessmen and politicians. Its only a decade since the country has seen an emergence of a political thought that encourages free enterprise. A welcome change indeed! (P)olitical Factors 1. Today there is political uncertainty in the air. A combination of diverse political thought have got together to cobble together a rag-tag coalition, that is riddle with ideological contradictions. Therefore, any consistent political or economic policy can not be expected. This muddies the investment field. 2. The Minister in charge of the industry has been threatening to impose even more stringent Price Control on the industry than before. This is throwing many an investment plan into the doldrums. 3. DPCO which is the bible for the industry has in effect worked contrary to the stated objectives. DPCO nullifies the market forces from encouraging competitive pricing of goods dictated by the market. Now the pricing is determined by the Government based on the approved costs irrespective of the real costs. 4. Effective January, 2005 the country goes in for the IPR (Intellectual Property Rights) regime, popularly known as the Patent Act. This Act will impact the Pharmaceutical Industry the most. Thus far an Indian company could escape paying a patent fee to the inventor of a drug by manufacturing it using a different chemical route. Indian companies exploited this law and used the reverse-engineering route to invent a lot of alternate manufacturing methods. A lot of money was saved this way. This also encouraged competing company to market their versions of the same drug. That meant that the impurities and trace elements found in different brands of the same substance were different both in qualification as well as in quantum. Therefore different brands of the same medicine were truly different. Here Branding actually meant quality and a purer brand actually had purer active ingredient and lesser or less toxic impurities. Product patent regime will eliminate all this. Now, a patented drug would be manufactured using the same chemical route and would be manufactured by the inventor or his licentiates using the chemicals with same specifications. Therefore, all the brands of the same active ingredient would not have any difference in purity and impurities. The different brands would have to compete on the basis of non input-related innovations such as packaging, color, flavors, Excipients etc. This is the biggest change the environment is going to impose on the industry. The marketing effort would be now focused on logistics, communications, economy of operation, extra-ingredient innovations and of course pricing. 5. In Pharma industry there is a huge PSU segment which is chronically sick and highly inefficient. The Government puts the surpluses generated by efficient units into the price equalization account of inefficient units thereby unduly subsidizing them. On a long term basis this has made practically everybody inefficient. 6. Effective the January, 2005 the Government has shifted from charging the Excise Duty on the cost of manufacturing to the MRP thereby making the finished products more costly. Just for a few extra bucks the current government has made many a life saving drugs unaffordable to the poor. 7. The Government provides extra drawbacks to some units located in specified area, providing them with subsidies that are unfair to the rest of the industry, bringing in a skewed development of the industry. As a results Pharma units have come up at place unsuitable for a best cost manufacturing activity. (E)conomic Factors 1. India spends a very small proportion of its GDP on healthcare ( A mere 1% ). This has stunted the demand and therefore the growth of the industry. 2. Per capita income of an average Indian is low ( Rs. 12,890 ), therefore, spending on the healthcare takes a low priority. An Indian would visit a doctor only when there is an emergency. This has led to a mushrooming of unqualified doctors and spread of non-standardized medication. 3. The incidence of Taxes are very high. There is Excise Duty ( State Central), Custom Duty, Service Tax, Profession Tax, License Fees, Royalty, Pollution Clearance Tax, Hazardous substance (Storage Handling) license, income tax, Stamp Duty and a host of other levies and charges to be paid. On an average it amounts to no less than 40-45% of the costs. 4. The number of Registered Medical practitioners is low. As a result the reach of Pharmaceuticals is affected adversely. 5. There are only 50,00,000 Medical shops. Again this affects adversely the distribution of medicines and also adds to the distribution costs. 6. India is a high interest rate regime. Therefore the cost of funds is double that in America. This adds to the cost of goods. 7. Adequate storage and transportation facilities for special drugs is lacking. A study had indicated that nearly 60% of the Retail Chemists do not have adequate refrigeration facilities and store drugs under sub-optimal conditions. This affects the quality of the drugs administered and of course adds to the costs. 8. India has poor roads and rail network. Therefore, the transportation time is higher. This calls for higher inventory carrying costs and longer delivery time. All this adds to the invisible costs. Its only during the last couple of years that good quality highways have been constructed. (S)ocio-cultural Factors 1. Poverty and associated malnutrition dramatically exacerbate the incidence of Malaria and TB, preventable diseases that continue to play havoc in India decades after they were eradicated in other countries. 2. Poor Sanitation and polluted water sources prematurely end the life of about 1 million children under the age of five every year. 3. In India people prefer using household treatments handed down for generations for common ailments. 4. The use of magic/tantrics/ozhas/hakims is prevalent in India. 5. Increasing pollution is adding to the healthcare problem. 6. Smoking, gutka, drinking and poor oral hygiene is adding to the healthcare problem. 7. Large joint families transmit communicable diseases amongst the members. 8. Cattle-rearing encourage diseases communicated by animals. 9. Early child bearing affects the health standards of women and children. 10. Ignorance of inoculation and vaccination has prevented the eradication of diseases like polio, chicken-pox, small-pox, mumps and measles. 11. People dont go in for vaccination due superstitious beliefs and any sort of ailment is considered as a curse from God for sins committed. (T)echnological Factors 1. Advanced automated machines have increased the output and reduced the cost. 2. Computerization has increased the efficiency of the Pharma Industry. 3. Newer medication, molecules and active ingredients are being discovered. As of January 2005, the Government of India has more than 10,000 substances for patenting. 4. Ayurveda is a well recognized science and it is providing the industry with a cutting edge. 5. Advances in Bio-technology, Stem-cell research have given India a step forward. 6. Humano-Insulin, Hepatitis B vaccines, AIDS drugs and many such molecules have given the industry a pioneering status. 7. Newer drug delivery systems are the innovations of the day. 8. The huge unemployment in India prevents industries from going fully automatic as the Government as well as the Labor Unions voice complains against such establishments.

Theories of Consumer Decision Making

Theories of Consumer Decision Making The concept of consumer buying behaviour is not new, it has been discovered ages ago .The current marketing strategies focuses on consumers buying behaviour. The marketing aim is to grow and make best use of their market share. Consumers decision making process is highly sensitive and is based on their learning and experience. The paper explains about the consumers psychological factor particularly learning and its effect on buying pattern. Learning has been explained with the help of theories, using black box and stimuli response theory. The black box explains the consumers decision making process and factors that affect buying decision. In addition this model also highlights the market stimuli, market environment, buyers stimuli and the buyers response. These internal and external factors aim to influence the purchasing pattern of every single consumer. Buyers are highly sensitive while making decisions and marketing stimuli provide necessary information and knowledge about the product or service. Consumers are also influenced by social and psychological elements like society, family, personal, motivation and learning. In practical consumer use personal thinking or experience to response repetitive buying. The self learning helps to reduce the buying options and narrow down the substitutes available in the market. Today modern companies have adopted the customized marketing techniques to understand the thinking and decision making standards. The cognitive learning helps the buyer to remember the previous purchase each time when similar arise buyer will use own experience to make decision. Satisfied consumer will not go for information search which comes after problem recognition and others steps in decision making. Marketers can influence post purchase decision by positive learning. Provided examples indicate the importance of buying behaviour and fortune 500 companies have used these elements to increase their retention rate. E.g; Dettol marketing explains the buyers response and trust which they have developed by using psychological marketing and positive cognitive learning. To enhance the learning process Marketer used education and awareness program to develop the learning of every single consumer. E.g. Toyota Lexus on other hand also focus experience as their marketing strategy. By understanding the need and market trust they introduced Lexus (Premium product) which leads the market from decades. Marketing techniques plus additional value added service enable them to enhance the customer experience. Toyota consumers were happy and satisfied with original band. By constructive experience Toyota succeeded to develop new market for luxury automobiles. While exploring consumer learning it was observed that customer retention has a direct relation with positive learning. It is also suggested that marketers must use buyer behaviour and need as the primary research of market study. Financial products and services require more understanding of consumers. It also needs to develop conceptual framework together with service marketing to deal with individual consumer. As explained its become more challenging for the marketers to understand, satisfy and influence the consumer to use financial services. By focusing customer experience, strong perception, service quality and trust marketers can influence the decision making and supplier choice. Parasuramans, A., Zeithaml, V.A. and Berry, L.L. (1985) says that its very difficult for a consumer to choose financial products and supplier because of the intangibility of product, and supplier reputation. Together with Ansoffs model and focus existing product and existing market marketers can increase buyer behaviour through target marketing. Outcome suggests that companies must emphasize on the elements that impinge on the buyers behaviour together with decision making. Learning can be deployed to evaluate individual response which has been proved by examples in the literature. Significantly, the end result suggests that learning can be use as communication and interaction tactic to view individual response especially financial products. Table of contents 1.0 Introduction Business success can be obtained through the appropriate study of consumer behavior. Consumer buying behavior is a multi step process, which involves buying, paying, using and reconsidering the same product over again. To understand the buying pattern or actions is very imperative as it directly influence the business success. As mentioned by Caslione, John A, (2009) the marketing strategies must meet consumer preferences in recession time in order to gain competitive edge. Most commonly buying activities reflects the strategy use by the companies for marketing and fulfilling the market needs. So consumers are considers to be the entry and exit to a successful business. To understand the consumers decision making it is important to understand the cognitive factors affecting their needs, choice, preference and final and post purchase experience or learning (5 Ws of marketing). Research done on buyer behavior helps to understand the deciding process in two ways i.e. collectively and individually. Both individual and collective buying process is affected by other factors like demographics, environment and perception. (Foxall, Gordon R, 1987) mentioned through the behavioral research companies can forecast the buying frequency and product preferences. Theory of Consumer behaviour and decision making The decision making theory was examined and modified by Nicholas Bernoulli and Oskar Morgenstern but it originate about 300 years ago. The theory was based on the expectation of decision outcomes which was a cognitive process. Later the theory was modified with the addition of value and satisfaction. In addition Allen Shocker explains the complexity and steps which involve in decision making. (Michael Richarme, 2005) Degree of involvement is another important factor while looking and making decision. Researchers also proved that the marketing activities have huge impact on consumers psychology which helps to take decision. Consumer behaviour is a psychological function which involves the customer to undergo the identification of their needs, searching methods to fulfill the needs and make purchase decisions accordingly. The process can also be described as collecting, interpreting, making plans and executing it for successfully buying the desired product (Lars Perner, 2008). The behavioral approach of the consumer is highly dominated by their psychology. The first model of consumer decision of making process was developed in 1963 by Howard and later edited in 1969 which has become the current theory of consumer behavior. The updated model provides an integration among the several psychological, social, and market pressure on the buyers choice and information (Howard and Sheth, 1969). Source: http://eprints.bournemouth.ac.uk/10107/1/Consumer_Behaviour_Theory_ _Approaches_%26_Models.pdf) 1.2 Consumer Decision Making Process Consumers cannot make their decision alone, rather they need to interact and look up for the information from various sources like their own concept, reference groups, environment, other buyers and sellers etc. (Source: http://eprints.bournemouth.ac.uk/10107/1/Consumer_Behaviour_Theory_ _Approaches_%26_Models.pdf) The consumer decision making process is interaction between the stimulus for the purchase, the characteristics or need of the consumer and their corresponding response. The stimuli can either be intra or inter personal from the consumer. This can further be explained by the BLACK BOX MODEL which emphasizes on the connection between the response and the stimulus of the buyer. (Cindy Dietrich, 2010) The companies plan and process their marketing stimuli, whereas on the other hand social factors like political, economic and cultural, impact the environmental stimuli. Fig# 5 the Black Box Model (Source:http://marketing5.net/Buying-behaviour-and-decision-making-criteria-of-Base-of-the download-w11405.pdf) The box encloses the characteristics of buyer and their decision making process which helps the buyer to decide and response. Internal and external factors have been represented in the model as buyer characteristics and environmental stimuli respectively. These factors together influence the decision process and buyer response as described in the figure above. From the identification of problem till the post evaluation of the decision each step is very critical for the buyer which directly affects the marketing strategies. Positive learning reduce the steps in decision making where consumer narrow down the choice, information search, alternative, here consumer behaviour to buy the specific product. All these process relate to buyer psychological factors, motivation, learning, personality etc. on the basis of information gathered the buyer tries to select the best available option while making the purchase. (A) How the selected factor affects the behaviour theoretically? Origination and influence of learning on buyers behaviour The cognitive method is the greater part of mental psychology which founded by early Marketers back (360 B.C). The memory or learning theory was developed by Aristotle who linked learning and knowledge as a mental process. In 1950 Hubb developed a model called Stimlus- organism- response which was dominated by behaviorism approach. (Hope J. Hartman,2001) Consumer decisions are influenced by individual uniqueness like age, life style, self concept, personality, occupation and economic condition. The purchase decision also influenced by individual learning and past experience. (Kotler, 2006) Learning refers to actions performed or information received. It arises from experience and interplay of wants, stimuli, response and reinforcement. Once the consumer has learned from their experience they try to discriminate and recognize the difference between similar buying stimuli and adjust their response to it consequently. Learning theories are also important to marketers in order to create the demand for a product using the buyers knowledge, motivating reasons for purchase and also backing them up with positive reinforcement (Frans Giele, 2009). Learning evolves over a period of time and helps the consumer to improve their knowledge. There is a continuous impact on the behavior of the consumer and their purchasing activities in future. The information gathered using different learning processes help the consumers to create a guide and mental framework for their purchasing pattern, behavior and decision. Learning is also closely to perception as it serves to be the raw input for the consumer knowledge which they have gained from previous buying occasions. (Mario Glowik, Slawomir Smyczek, 2011). Perception can better be explained as a process which the consumer uses to select, organize, receive and interpret their buying need and enrich their learning for a better purchase decision. (William j. Mcguire, 1976) said that perception is more important and has high influence than other stimulus. In this way the consumer evaluates the various brands and products which come to their mind. Often the compared aspect of the product relates largely to the psychological and functional benefits offered by the products or brands. (Thomas M. Aslin, Michael L. Rothschild, 1987) Marketers must understand the importance of learning/ experience as first impression is the last impression and it is important for the company to retain the existing customer as it is always cheaper and consecutively make new loyal customers. Other market factor like service quality and sellers eminence are also a part of human cognitive process which directly affects the buying pattern. (Kau, Daleen and Serene, 1995) New marketing strategies should focus to enrich customers experience by enhancing their learning/ experience and benchmarking those processes to increase market segment and share. Mental learning determines that for how long does particular information retains in human mind. This process involves different activities that a consumer relates while buying the particular product or service and then this information becomes the knowledge for future reference. Consumer retrieves the information from the memory if the same or similar product or service is observed. Effective marketing strategies and tools help to create a lasting impact on the cognitive learning of the consumers. (Mark D. Uncles, Grahame R. Dowling, Kathy Hammond and Angelo Manaresi, 1998) Marketers can use behavioral learning to enhance the consumers experience associated to their products as a large market segment loves to follow the current market trend and feel satisfied with their decision. Example 1: Dettol antiseptic has excellent advertisement which has made a lasting impact on consumers mind by using their marketing slogan of Be 100% sure. This advertisement has created a long and positive image on consumers mind since ages. Even after the launch of other brands of antiseptic liquids like Savlon by JJ, consumers still look for Dettol as their first choice while making a purchase decision as Dettol has made a strong brand image. Example 2: Allen bought Mercedes Benz S-class and told his boss and the boss admired the comfort, safety and power while driving, he will be happy to hear positive response and feel satisfied with the buying decision and feel proud to associate with the brand. Service products require more concentrated and customized service and experience. As they affect each customer in different manner and individually. Consumers level of involvement influences their buying behavior decisions which can be classified into three categories: Repetitive/routine buying, limited and extensive decision. Level of satisfactions/learning is also important to decide the nature of buying behaviour in future. Consumers keep their learning experiences as a catalogue and categories them as positive or negative which they use for future reference. Example 3: A Toyota customer will remain loyal to the brand if he has a good experience with his previous purchase of its models and associated services. So when the company introduces new car segment like Lexus which belongs to niche market, the customer will not hesitate to buy the product since his experience is affirmative. 2.0 B: Why is customer experience important to marketers in explaining buyer behaviour? Consumer behaviour and decision making process has been one of the favorite research topic for marketers since ages. Authors like Sheth (1974) recommended that consumer decision making is largely influenced by their family, awareness, knowledge and power of their attitude for the brands available in the market. Consumers use detailed information and their past experience to minimize brand ambiguity. Therefore managers must ensure that each purchase experience leads them to higher satisfaction and positive learning about their product and brand. Allen m. Weiss, Nicholas h. Lurie, and Deborah j. Macinnis, (2008) mentioned in their paper that Marketers can play with the psychology of the consumer as consumers compare each product in their mind. Companies need to identify about the consumers, what they want and which products make them happy. Fortune 500 companies have chosen marketing activities like advertisement, pricing, packaging and labeling to attract their customers. Modern marketing practices have moved on to CRM, service quality which leads to strong brand image and name. Service quality has emerged as an influencing characteristic in consumers learning, as a goods service quality leads to positive learning and rewarding experience for the consumer. Example 4: Dell is famous for their products and after sales services. In case of any technical assistance needed, the company sends their team to solve the problem at the customers residence. So the customer is highly motivated to trust and buy their product. Dell used customer experience and feedback to improve their product and service quality. 2.1 Explanatory examples (Marketing and Managerial Implications) 2.1.1 Dettol (Reckitt Benckiser) Strong marketing and brand image is behind the success of Dettol. Marketers have carried extensive research, advertisement and learning campaigns. The company has focused to educate and make every single consumer aware about personal hygiene and germ free environment. The marketing slogan of Be 100% sure has created a positive image and brand in consumers mind. The cognitive learning has helped the company to influence the buying behaviour and decision making of the consumers. Dettol has used several marketing strategies which were designed to influence the learning of consumers to ensure that whenever they think of antiseptic liquid they must think of the only brand i.e. Dettol. Through the use of learning and awareness programs, the company has successfully expanded their business and product categories from personal care to total care. E.g.: They first launched their antiseptic liquid followed by toilet soap, hand wash, shower gels and bars, shaving creams etc. Dettol has used mar keting knowledge and communication to develop the need of the product which was supported by various marketing and advertisement programs. Sayantani Kar, (2009) mentioned that Consumers are highly influenced with learning approach adopted by Reckitt Benckiser hence they are loyal to the brand. Dettol marketers have chosen psychographic and behavioral segment to target the selected consumer and then penetrate by the use of marketing channels. Competitive marketing and advertisement is the powerful USP (unique selling proposition) which helped them to grow and develop strong image which directly influenced the buyer behaviour. By using cognitive and behavioral learning factor company is rapidly engaged in research and development to extend its product line. (Prerna Raturi, 2006) Several business rivals like PG, Unilever have tried to focus on consumer learning and succeeded to break the market to some extent but being a pioneer and strong brand, Dettol remains as their first preference. 2.1.2 Lexus (Toyota Motor Corporation) Being an automobile market leader the company has transformed itself into quality conscious company. Toyota is well known for its durability, performance, luxury and features. Consumers have learned the superior quality and performance by experiencing Toyota cars. Company has a wide segment market which starts from middle income to high income groups. Toyota has transformed high end market with clever marketing and using consumer experience. (Bill Vlasic, 2012) Through encouraging experience they have entered in to niche market where traditional rivals like, BMW, Benz and Volvo dominate the market. By understanding the need of their existing customers they took innovative steps and broke the market share and successfully launched LEXUS. Lexus is a premium car and also one of the largest selling brands in the world. Carl Howe (2007) mentioned that Lexus used direct and target marketing by which they targeted loyal customers who were happy with Toyota models, while they carried massive marketing plans to focus and educate the consumers that Lexus belongs to Toyota but it is a more value added product. They used words like same family but different child concept to introduce Lexus. The new concept was high value leading to high price which influenced buyers to experience the new product. Consumers have responded greatly to the new model which resulted in greater sale for the company, since the cognitive learning was affirmative which insisted them to try the new model Lexus hence upgraded their behavioral learning. Alan Ohnsman and Makiko Kitamura (2011) stated that the after sales service was one of the key marketing features together with the product that enabled the marketers to develop lasting impact on consumer psychology and they succeeded to influence buyers behaviour. (C) Best product category and its implications. 3.0 Financial Services (Banks) Financial services are the most discussed topic in todays economy. By narrowing to financial products like, Personal banking and Investment banking particularly, service marketing has introduced many models to understand and deal with the problems. Consumer behaviour is one of the biggest issues which differentiate these two markets (product, service). Services are different from goods because of their heterogeneity, inseparability, intangibility, perishability and customization which make it difficult for marketers to identify and practice the service standards. Major Banks and financial institutions have realized the importance of consumer psychology toward financial products which influence the final decision. (McKechnie, Sally, 1992) To make a purchase decision for a financial product the consumers are not completely aware of the utility and consequences, the learning is developed simultaneously with the product use and Therefore its highly critical for the marketers to acquaint with personality, consumer thinking, relationship, service quality etc. which directly affect the buyer preference. The financial services are not a one- time purchase but there are several two- way transactions for long time. These services need the trust, confidence and mutual rapport of the consumer in the financial institutions. Lunt, Peter, (2005) explains that Marketers invests plenty of time to facilitates and establish a mutual relationship to print positive image in the consumers cognitive learning which they consider to assess the creditability of the institution repeatedly. It also benefits the institution in long term business with individual consumer. Trials are not available for these products and services, most of consumers use their experience to make decision every time. So customer experience, trust and brand image are the main wisdom drivers which influences the buyer to select from available financial facilitators. 4.0 Conclusion The object to study the consumer behaviour and decision making is to examine the role of determinates that influence the final decision of consumer. The justifications and explanation was based on available consumer decision making theories, buying behaviour model and deep study of selected determinant learning. While exploring the determinants it was observed that marketing stimuli, an external and internal factor plays a critical role in consumer psychology which influence individual response. These elements affect the final purchase of every single product or service. Therefore its highly critical for the marketers to identify and effort to narrow down the difference between consumer and supplier interest. Study also indicates the major difference between product and service and also suggests addressing them with more focused marketing. As a service based product buyers are more conscious about the cost and outcome of the specific product because of intangibility of the product it is difficult to communicate with the consumer. Learning encourages the buyer to understand and provide a clear feedback of any particular product. If the consumer is happy with the product or service the feedback will be highly positive which also influence the buyer to straight rebuy without considering other options. In financial products consumers are always scare with the outcome of the decision and highly depend on their previous learning. Marketers have used this element to understand the needs and want to optimize the satisfaction level, which is actually developing positive attitude to rebuy the same product. Marketers can use modern methods to reduce the level of negative out come by spending more on developing consumer learning and experience. The right use of service quality, customer relation and satisfaction helps to create long term business with every customer which also reduces the brand switching. It is also observed that companies and marketers cannot solely depend on learning determinant. While investigating the determinants it is seen that marketing stimuli also affect the buyer behaviour. The choice of marketing mix product, place, price, promotion) significantly changes the taste and choice of buyer. Marketers must design the strategies to reduce the flaws and ensure that the right message is conveyed to the consumers. The primary aim of marketing is to develop the need, attract, educate and influence consumers to buy the product. Therefore proper market study, product design, segmentation and targeting should be ensured by the marketer. 5.0 Learning from the assignment Consumers involve in buying and decision making process every day. The learning and decision making affects every time one use the product or service. Being continuous process its crucial for the buyer and the marketer to understand the process behind the decision process and what factors affect the buyer on each purchase. Being a marketing student the assignment helps to understand the available theories in details. Exploratory assignment determinants of buying behaviour helps to comprehend the practical implication of each determinant like Marketing stimuli, external and internal factors. By using exploratory research on chosen factor it was observed that it is very critical for the company and the marketer to understand the consumer need, preference, satisfaction and loyalty. Companies cannot rely on each determinant which influences buyer decision because consumer keeps changing their buying decisions. Strong marketing is also one of the key successes for every company which involves more focused, targeted and innovative communicative tools to address the need of the consumer with offered solution. Assignment also facilitates to analyze the practical illustration from the world renowned companies. While exploring their marketing strategies particularly which helps to learn from their practices. Critical analysis help to understand the pros and cons of every option which the marketers use address the problem. The assignment also encourages self learning, theories and their implications. Being a future manager it is quite helpful to discuss and address the problem in details. The positive outcome is to address the problems with solutions which help to groom the thinking and brainstorming process being a decision maker and manager. Strong marketing is the key of todays competitive business, it was an opportunity to learn and evaluate the possible solutions while understanding consumer decision making process which will help to take positive decisions in future time. 6.0 Appendix Fig#1 Theory of customer buying behavior (Source : http://eprints.bournemouth.ac.uk/10107/1/Consumer_Behaviour_Theory_ _Approaches_%26_Models.pdf) Fig #2 Decision making through information search (Source: http://www.consumerpsychologist.com/cb_Decision_Making.html)

Copyrights And Patents :: essays research papers

Everyday businesses provide the world with products and services. People in general are just not self-sufficient. Who has time to make their own clothes, own meals,clean their own house, or even watch their own kids? Today’s every growing business world and advancements in technology make it extremely easy to obtain anything one could ever desire provided they have the money to buy it. Many people gained great success and wealth from their original product and business ideas. People have alsogained great wealth from borrowing, stealing or adapting from one â€Å"original† idea.   Ã‚  Ã‚  Ã‚  Ã‚  The majority of copying and fraud involves software and clothing items. (Edwards6) One aspect of this is known as bootlegging. this is where someone copies a program, CD, performance, etc., and sells it on the streets. According to Mike Edward’s of the International Federation of the Phonographic Industry claims that world wide CD piracy accounts for 6.5% of the industries annual sales.   Ã‚  Ã‚  Ã‚  Ã‚  A different approach to borrowing one’s idea doesn’t nessacarily copythe product. Instead it involves misleading the consumer. As in one case, the Miller Brewing Company developed a new beer with a label similar to Annheuser Busch’s, who is currently the number one brewer in America. The â€Å"new brew† was aimed at taking away sales from â€Å"the King of Beers.† (Melcher 37)   Ã‚  Ã‚  Ã‚  Ã‚  Logos are also often copied. A logo is defined as an advertising symbol or message that represents a product or a service. In one case, OJ Simpson has agreed to share marketing rights with the Florida Department of Citrus to use his initial in connection with orange juice. (Wells 1)   Ã‚  Ã‚  Ã‚  Ã‚  Materials can be illegally duplicated in many different ways. This includes everything sharing software, to copying CD’s, to illegal sweatshops. Commercial goodshave either patents which are supposed to protect them from illegal duplication.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Digital technology is becoming a big problem for graphic artists who are trying to protect their creations. Scanners have made it very easy to duplicate images instantly. The creator must apply for a copyright in order to be able to sue for fraud. Images that are not copyrighted are in the public domain. Also, copyrights expire 50 years after the creator’s death. (Baer 163)   Ã‚  Ã‚  Ã‚  Ã‚  China plays a major role in copyright piracy. Officials estimate that China exports about $827 million dollars a year of impostor products. An example of this is shampoo with a familiar American brand label, but containing different ingredients than the US versions. Copyrights And Patents :: essays research papers Everyday businesses provide the world with products and services. People in general are just not self-sufficient. Who has time to make their own clothes, own meals,clean their own house, or even watch their own kids? Today’s every growing business world and advancements in technology make it extremely easy to obtain anything one could ever desire provided they have the money to buy it. Many people gained great success and wealth from their original product and business ideas. People have alsogained great wealth from borrowing, stealing or adapting from one â€Å"original† idea.   Ã‚  Ã‚  Ã‚  Ã‚  The majority of copying and fraud involves software and clothing items. (Edwards6) One aspect of this is known as bootlegging. this is where someone copies a program, CD, performance, etc., and sells it on the streets. According to Mike Edward’s of the International Federation of the Phonographic Industry claims that world wide CD piracy accounts for 6.5% of the industries annual sales.   Ã‚  Ã‚  Ã‚  Ã‚  A different approach to borrowing one’s idea doesn’t nessacarily copythe product. Instead it involves misleading the consumer. As in one case, the Miller Brewing Company developed a new beer with a label similar to Annheuser Busch’s, who is currently the number one brewer in America. The â€Å"new brew† was aimed at taking away sales from â€Å"the King of Beers.† (Melcher 37)   Ã‚  Ã‚  Ã‚  Ã‚  Logos are also often copied. A logo is defined as an advertising symbol or message that represents a product or a service. In one case, OJ Simpson has agreed to share marketing rights with the Florida Department of Citrus to use his initial in connection with orange juice. (Wells 1)   Ã‚  Ã‚  Ã‚  Ã‚  Materials can be illegally duplicated in many different ways. This includes everything sharing software, to copying CD’s, to illegal sweatshops. Commercial goodshave either patents which are supposed to protect them from illegal duplication.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Digital technology is becoming a big problem for graphic artists who are trying to protect their creations. Scanners have made it very easy to duplicate images instantly. The creator must apply for a copyright in order to be able to sue for fraud. Images that are not copyrighted are in the public domain. Also, copyrights expire 50 years after the creator’s death. (Baer 163)   Ã‚  Ã‚  Ã‚  Ã‚  China plays a major role in copyright piracy. Officials estimate that China exports about $827 million dollars a year of impostor products. An example of this is shampoo with a familiar American brand label, but containing different ingredients than the US versions.

Elder Berries: Analysis of Sambucas Nigra Essay -- analgesic, antip

There are many herbal treatments available to patients, but few have been used longer than sambucas nigra, otherwise known as elder berry. Well known for its analgesic, antipyretic, anti-inflammatory, diuretic, laxative immune boosting qualities, elder berry has been used for multiple health alterations (Ulbricht, Basch, Cheung, Goldberg, Hammerness, Isaac, &...Wortley, 2014). In this paper the background, pharmacology, contraindications, current research and recommendations for use regarding elder berries will be discussed. Elder berries are a versatile fruit that has multiple applications in the healthcare field, warranting an increased role in patient care. Background The sambucas genus contains many different plants, with the sambucas nigra shrub occurring in Europe and North America. Both the European variety (nigra) and the North American variety (canadensis) are often examined concurrently due to their similarities in use and pharmacology . Ulbricht et al. (2014) explain that the European variety grows up to 30 feet with the flowers and leaves used as flavouring, an analgesic, anti-inflammatory, antipyretic and diuretic and the bark is used as a laxative and emetic. They also state that traditionally, elder berries were used in England and Russia to ward off evil influences, witches, spirits and death. Fernandes, Marques, de Freitas, Mateus (2013) describe that dating as far back as ancient Egypt and the time of Hippocrates recipes for elder-berry based medications were found and extensively used to treat a multitude of ailments such as influenza, colds and sinusitis. Since it's early beginnings, elderberry has continued to be of use for the treatment of colds, flu, and fever in addition to burns, cuts and many other ailm... ...odchem.2013.05.033 Frank, T., Janssen, M., Netzet, G., Christian, B., Bitsch, I., & Netzel, M. (2007). Absorption and excretion of elderberry (Sambucus nigra L.) anthocyanins in healthy humans. Methods And Findings In Experimental And Clinical Pharmacology, 29(8), 525-533. Sambucol (n.d.). Sambucol Products. Retrieved from http://www.sambucol.ca/sambucol- products/ Ulbricht, C., Basch, E., Cheung, L., Goldberg, H., Hammerness, P., Isaac, R., & ... Wortley, J. (2014). An Evidence-Based Systematic Review of Elderberry and Elderflower (Sambucus nigra) by the Natural Standard Research Collaboration. Journal Of Dietary Supplements, 11(1), 80-120. doi:10.3109/19390211.2013.859852 Vlachojannis, J., Cameron, M., & Chrubasik, S. (2010). A systematic review on the sambuci fructus effect and efficacy profiles. Phytotherapy Research: PTR, 24(1), 1-8. doi:10.1002/ptr.2729

Obesity and Cancer Risk

According to the National Cancer Institute, obesity is a condition in which a person has an abnormally high and unhealthy proportion of body fat. Obesity is measured by calculating a person’s BMI. Years of research prove that there are connections between obesity and cancer risk. Research shows us that an increase in body weight increases insulin levels in the blood, which promote the development of certain tumors and tumor regulators. Fat cells also produce adipokine hormones, which stimulate cell growth.Leptin, which is abundant in obese people, acts on a receptor on the brain where a person exhibits appetite and promotes cell proliferation, or cell growth. Essentially, excess body weight is the catalyst for hormones in the body to not function properly while additionally promoting cell growth, which is the major cause of cancer spread. In 2007 research found 34,000 new cases of cancer in men and 50,500 new cases in women due to obesity. It is estimated that 1:5 cancer relat ed deaths are due to overweight and obesity.Obesity is associated with several cancers in the body, including in the esophagus, pancreas, colon and rectum, kidney, thyroid, gallbladder, breast (after menopause) and endometrium (the lining of the uterus). Weight gain affects the body’s immune system, certain hormones including insulin and estrogen, and factors that regulate cell division. Scientists in the American Cancer Society admit that research is limited in learning whether or not weight loss can reduce cancer risk.There is growing evidence to suggest that a reduction in weight may diminish the risk of breast cancer, after menopause, as well as more aggressive forms of prostate cancer. However, obese people who lose weight often reduce certain hormone levels that relate to cancer risk, such as insulin and estrogen. Cites: National Cancer Institute http://www. cancer. gov The American Cancer Society http://www. cancer. org The PubMed Data base http://www. ncbi. nlm. nih. gov/pubmed

Karl Marx Classless Society Essay

This essay discusses the concept of a classless society according to Karl Marx. The first part aims at defining a class within the context of social class. It also defines the term classlessness. The second part focuses on the possibility of attaining and sustaining a classless society in this century. The first part of the essay starts by discussing what a class is. It then goes on to briefly discuss how classes came about, outlines the different classes and what or whom they constitute and finally briefly describes the concept of classlessness. The second part of the essays begins by discussing the concept of a classless society as defined by Karl Marx. This is followed by an assessment as to whether or not a classless society is attainable and sustainable in this century. Class The term class has several different definitions. It can be defined as the segment of a population that have similar social standings in society or a similar social status. That is, a group of people in society sharing broadly similar types and levels of resources, who possess similar styles of living and, some common perception of their collective condition. Alternatively, Marxists are not concerned with the ideas of individual workers about their position in society. They hold that a person’s class is not determined by the amount of wealth that he has, but by how he acquires it, as determined by his relation to labour and to the means of production. As defined by Lenin Vladimir I. â€Å"Classes are large groups of people differing from each other by the place they occupy in a historically determined system of social production, by their relation (in most cases fixed and formulated by law) to the means of production, by their role in the social organisation of labour, and, consequently, by the dimensions of the share of social wealth of which they dispose and their mode of acquiring it† (1965, p421). Class Struggle According to Marxist theory, there once existed a classless society which encompassed tribal society and primitive communism because everyone was poor and carried out the same type of work. Classes emerged only at a certain stage in the development of productive forces and the division of labour. This occurred when the transition to an agricultural society created the existence of surplus of production, which was more than enough to satisfy an individual’s needs at a particular time. It is this surplus production that brought about the development of classes in society, because the surplus could be used by the higher class. That is, the ruling class which did not participate in production. Types of Class â€Å"There are three great social groups, whose members†¦ live on wages, profit and ground rent respectively†. Karl Marx: 1971, p. 886). These three social groups or classes are: †¢the proletariat or working class, †¢the bourgeoisie or capitalist class, †¢the landlord class The Landlord Class Marxist-Leninists define the landlord class as that class which owns land and derives its income from ground rent on that land. Marx considered them a marginal class, progressively losing their importance with the development of capitalist society. Thus, in a developed capitalist society, there are still three basic social classes, but these are now the bourgeoisie; the petty bourgeoisie; and the proletariat: â€Å"Every capitalist country†¦ s basically divided into three main forces: the bourgeoisie, the petty bourgeoisie and the proletariat†. (Vladimir I. Lenin; 1964, p. 202). The Bourgeoisie These are the owners of capital. It is this capital that they use to buy and exploit labour power and then use the surplus value from employment of this labour power to accumulate or expand their capital. Marxist-Leninists define the bourgeoisie or capitalist class as â€Å"†¦ the class of modern capitalists, owners of the means of social production and employers of wage labour†. (Friedrich Engels: Note to: Karl Marx & Friedrich Engels: 1943; p. 04). Classlessness The term classlessness can be used to describe several different social situations occurring in society. Amongst these include; i. Societies in which classes have never developed. These being societies in which all people are considered equal, carry out similar economic roles and have never created a division of labour. ii. Societies where classes have been deliberately or voluntarily abolished such as is the case for the Israeli kibbutzes. Class analysis explains how modern capitalist society works and accounts for many of the other issues raised by the other approaches. But class analysis has been criticized as economically too deterministic and not able to explain changes in modern societies where people from different strata show mobility as they benefit from the dynamic organization of the capitalist economy. Another critique of class analysis is that, because of the focus on the production, it tends to ignore the fact that social stratification in society occurs along various planes and not just economic organization as. Others have identified stratification on the basis of gender, race, ethnicity as key to understanding most societies. From the above, a classless society can be explained as one where there is no private ownership and control/rights over property. That is, a society where the basis of class division in property has been eliminated through public ownership of the means of production. By implication, all value including surplus value created by labour is consumed collectively by the community. In accordance with the above analysis of Marx’s theory on class and classless society, and the occurrences of this century, it can be concluded that a classless society is not likely to be attained, nor sustained. This is because time and history have invalidated many of Karl Marx’s assumptions and predictions. For instance, capitalist ownership and control of production have been separated. Joint stock companies forming most of the industrial sector are now almost entirely operated by non-capital-owning managers. There is also the case of people in a society not only being employees of a company, but also owning capital, that is, shares in the company they work for. In such a situation, it is not expected that a revolution against the capitalist can take place as the worker is the capitalist. It would not be logical for a person to overthrow himself. Workers are divided and subdivided into different skill groups. They have not grown homogenous. Thus, it is quite difficult for the proletariat to start a revolution as each worker or skill group has different goals and values. That is, workers are not united and not all may be willing to participate in the overthrow of the capitalist. In addition, class stability has been undermined by the development of a large middle class and considerable social mobility. Instead of increasing extremes of wealth and poverty, there has been a social leveling. And finally, bourgeois political power has progressively weakened with growth in worker oriented legislation and of labor-oriented parties, and with a narrowing of the rights and privileges of capital ownership. Most important, the severest manifestation of conflict between workers and capitalist (the strike) has been institutionalized through collective bargaining legislation and the legalization of strikes. Furthermore, some of Marx’s predictions have not come to pass: Growth of capitalism. While Marx expected capitalism to expand and he understood the adaptability of capitalism to new conditions, he appears to have expected capitalism to eventually collapse. Today, capitalism has adapted and has created new means of expanding itself – through development of new technologies, new forms of organization, colonialism and imperialism, and new markets. Technology reducing profits. Marx predicted that as industry becomes more mechanised, using more constant capital and less variable capital, the rate of profit would fall. This is not the case in the current era as the increase and improvement in technology, has in turn brought about an increase in the quality and thus the value of goods and services. Thus, increasing profit. Increasing poverty of the working class. Marx expected the working class to become increasingly impoverished. Though there are tendencies in this direction and employers attempt to reduce wages, workers have been able to increase their wages, usually above subsistence levels in certain periods. Workers have done this through trade unions and through pressuring the state to improve working and living conditions.