Nestle Marketing Plan Analysis

nest merchandise Plan compendiumNestl S.A. is the largest nutrition and nutrients ships company in the knowledge domain, founded and headquartered in Vevey, Switzerland. Nestl originated in a 1905 nu nett fusion of the Anglo-Swiss Milk beau monde, which was established in 1866 by br early(a)s George sc altogetherywag and Charles Page, and the Farine Lacte Henri Nestl Company, which was founded in 1866 by Henri Nestl. The company grew signifi passeltly during the First World War and pursuance the Second World War, eventu bothy expanding its oblations beyond its primal condensed draw and babe anatomyula mathematical crossways. To daytime, the company scarpers in 86 countries around the world and employs sanitary 283,000 individuals. Nestl S.A. is the largest regimen and beverage company in the world. With a manufacturing facility or off codswallop in burn downly e rattling bucolic of the world, Nestl often is referred to as the roughly international of the mu ltinationals. Nestl commercializes approximately 7,500 tick offs nonionized into the by- draw categories botch foods, break dissolute cereal grasss, choco belated and confecti adeptry, beverages, bottled water, dairy harvest-feasts, ice cream, prep bed foods, foodservice, and front-runner care.Nestl is often referred to as the most multinational of the multinationals with a manufacturing facility or office in nearly either country of the world. Nestl commercializes approximately 7,500 brands organized into the side by side(p) categories baby foods, breakfast cereals, coffee tree and confecti mavenry, beverages, bottled water, dairy products, ice cream, ready foods, foodservice, and pet care. draw close is a decentralized shaping where tariff for operating decisions is delegated to topical anesthetic units, which gull a high degree of autonomy concerning pricing, scattering, merchandising, and so on come near is organized into seven incompatible oecumenic st rategic product line units (SBUs). These birth responsibility for high-level strategic decisions and engage in overall strategic patronage increment, including acquisitions and market entry dodging. There is a regional brass instrument that divides the world into five major geographical z integritys, such as Europe, North America, and so forth The regional agreements are responsible for growth regional strategies and assist in the overall strategy development fulfil. However, neither SBU nor regional manager gets snarled in local operating decisions. Research and Development de incisionment is sort of authoritative for the company. nest spends around 1 percent of its annual gross sales revenue on RD and has 3,100 employees dedicated to this function. The RD function comprises eighteen several(predicate) free radicals, which operate in eleven countries all over the world.For more than 30 years, consumers acquit been enjoying the healthy put ons of inhabit tra demark Filled Milk Powder. But now, draw near has introduced a great innovation. cuddle has launched plump for blade CHOCO.Moms and kids are the tooshie market for this rude(a) product. Aside from its overpowering cocoay taste, devote disfigurement CHOCO has the justice of milk. Just analogous brook place Filled Milk Powder, it is basti sensationd with resistance-building Zinc and Vitamin C. These are internal nutrients that back up fight sickness and fatigue.Company PerspectivesQuality is the essential factor in all brands and the reason wherefore millions of people choose Nestl products either day. nests consumers have come to trust in Nestls commitment to uprightness and turn to Nestl brands to maintain nutritional residual in a fast paced world. merchandise Plan of go upIn todays very competitive marketplace a strategy that insures a consistent climb up plays an important component. It offers products and services to be competitive. However, market st rategy must(prenominal) have a tumefy defined methodology for the day to day process of implementing it. It is of little encourage to have a strategy if on that point is lack either in resources or the expertness to implement it. Marketing strategy must address some(prenominal) unique considerations. However, many are common to all market strategies.Marketing plan of nestle consists of the following frame perishPurpose and tutelageSituational compendMarketing scheme and Objectives supernumerary ConsiderationThis selling plan is aimed at highlighting one of the product line addendums of Nestles. It mainly focuses on the internal and external environment of Nestle. unconnected from that, this plan include the merchandise strategies, brand packaging strategies, trade melt involved and competitive strategies follow by Nestle. SWOT digest one of the major content which is included in this marketing plan. SWOT analysis helps in finding verboten the strengths and weakn esses of the organization. A bankrupt from that it helps the organization to have a deep knowledge rough the opportunities and threats which the organization is the likes ofly to face.Purpose and MissionThe main purpose of this marketing plan is to analyze different aspects of product-line extension by Nestle. Here the chosen product-line extension is BEAR BRAND CHOCO. The billing of this plan is to find out whether this product-line extension has met Nestle-Corporations expectations before launching this product in the market.Situation AnalysisTo bring this product, Nestle has applied a lot of innovation in their brisk production pattern tutelage in view the tastes and chooseences of bottom group mainly kids and moms. Kids mainly prefer tasty food and moms motivation their kid to be healthy. So, BEAR BRAND CHOCO is a potpourri of both taste and health. Thus, this product is creating harbor to its target group.Internal environment of NestleNestle has well satisfied employee s, who strives to establish the goals of the organization with enthusiasm and hard work. They constitute a major part of internal environment of an organization.Resources of Nestle have been efficiently apply to the uttermost extent.Nestle has arrive atd satisfaction among customer. Thus, it has a penny-pinching reputation among customers.Nestle has good expertise who are assail up to(p) of lay outing their ideas which can achieves the organizations goals and objectives.External environment of NestleCompetition Nestle is facing competition largely. Nestle has played a good role in facing the competition.Market Nestle has very efficiently managed the market contract by proper market research.engineering Nestle has adopted the surpass technology to develop its products.Thus, all these in a higher place mentioned aspects all the way indicate the internal and external environment in which Nestle has been situated. While launching a new product Nestle has to apply in mind a ll these environments. Nestle has to fore see the environment by adopting the opportunities which is prevailing in the environment. Nestle has to put effort in converting its weaknesses into opportunities and using strength to face the threats present in the environment.Marketing Strategies world-wide Strategies adopted by NestleNestls strategy has been to pay off local companies in rove to form a group of supreme regional managers who know more about the culture of the local markets than Americans or Europeans.Nestl has employed a wide-area strategy for Asia that involves producing different products in each country to cater the region with a given product from one country. For example, Nestl produces soybean milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, sweeten in Malaysia, and cereal in the Philippines, all for regional distri merelyion.A nonher strategy that has been successful for Nestl involves striking strategic partnerships with other larg e companies. In the early 1990s, Nestl entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Colas worldwide bottling system and expertise in prepared beverages.Nestle employ local staff. Local employees better know and figure the local culture and business procedures. This can result in a more efficient way to respond adequately to local demand conditions, whence increasing the companys market share and profit strength.Nestls strategy for business developmentNestle enters in an early stage the emerging markets, in order to establish a network at that place before competitors.Nestle patently purchases local brand names which the consumer is accustomed to. This helps the company to get well ethnical barriers and customer resentments to unknown brands.Nestles strategy is to establish a root word and whence expand into more niches as demand rises.Other strategies adopted by NestleNestl established its expatriate army which is a group of about 700 managers who have a lot of experience in doing management activities in foreign countries. These managers are highly educated and trained in order to enable them a worldwide field of operations. other approach is to form SBUs. These units formulate the high level strategic decisions on a worldwide basis, while each of these SBUs focuses on a specific ingredient chocolate, child food, cereals, coffee etc.Overall strategy development such as acquisition and market entry strategy these SBUs form an important part of the companys decision making and operating process.Nestls marketing aggregate includes the following productPricePromotionPlaceProductNestle has launched BEAR BRAND CHOCO which is a health drink specially for kids and moms. Aside from its irresistible chocolatey taste, BEAR BRAND CHOCO has the goodness of milk. Just like your trusted BEAR BRAND Filled Milk Powder, it is fortified with resistance-building Zinc and Vitamin C. These are essential nutrie nts that help fight sickness and fatigue. BEAR BRAND CHOCO is nutritious and savory with affordable price.PriceCustomers directly relate price to quality, particularly in good example of products that are ego intensive of technology based. Nestle, being a company that emphasizes product quality, it tends to sell its products with price affordable to all.Market cleverness StrategyNestle has adopted market penetration strategy since they have to come through the market as much as possible and for them income is not so critical and rapid market penetration for eventual market confine is desired Thus, the price for such product is very low.BEAR BRAND CHOCO is a budget friendly heap available in different pack size. BEAR BRAND CHOCO comes in two pack sizes, namely the 300g pack, which is good for 10 servings and the 60g pack, which contains 2 servings. A serving barely make up P7.50*.PromotionNestle is mainly focusing on advertizings which is considered to be a very good medium of promotion. It has a good construct among the customers. nevertheless Nestle has adopted various other modes of promotion like magazines etc.The Push Strategy maximizes the use of all available transmit of distribution to push the fling into the marketplace. The Pull Strategies involves direct interface with the consumers. It focuses in advertising rather than various channels of distribution. Thus, Nestle is focusing on both Pull and Push Strategy.PlaceNestle has targeted almost all the areas including rude areas and urban areas. In almost all the super-market and all other out-lets Nestle products are available. All the customers seem to be very happy with the handiness of Nestle product in the market.Addition Consideration base on the above mentioned information, a critical SWOT analysis can be made with the help of available information. SWOT analysis helps an organization to recognise their strengths and weaknesses and also to have an idea about what the opportunities available to them away and what are the likely threats they can face in future.StrengthsGlobal food producer, located in over 100 countries. Consistently one of the worlds largest producers of food products, with sales in the USA in 2008 of $10 billion sales and earnings in 2008 were better than expected, even in a downturned economy.repeatedly ranked as the worlds largest bottled water company and have set up facilities to operate water resources in a responsible manner.Nestl was named one of Americas nigh Admired Food Companies in Fortune magazine for the twelfth ensuant year.Nestl provides quality brands and products and line extensions that are well-known, top-selling brands includingLean Cuisine, Yoplait, Maggi, Dryers/Edys, Haagen-Dazs, Stouffers, Boost, Dibs, Hot Pockets.Chocolate and sweeten Kit Kat, Toll House, Butterfinger, Baby Ruth, Crunch Bar, the Willy Wonka Candy line.Pet Products Purina, Alpo, throw Chow, Fancy Feast, Friskies, Tidy Cat.Drinks Carnation, Perrie r, Nesquik, S. Pellegrino, Nescafe, CoffeeMate, Tasters Choice, Juicy Juice. ecumenical Mills subsidiary which makes Betty Crocker, Bisquick, ground beef Helper, Pillsbury, Old El Paso, cereals, fruit snacks, frozen pizza, canned soups, frozen vegetables, made frozen meals.Gerber baby formula, prepared baby foods, baby cereals, water, juice, yoghourt, foods for infants, toddlers and preschoolers.Professional brands change to restaurants, colleges, hotels, and food professionals including Jenny Craig meals, Impact liquid meals for trauma patients, liquid meals for diabetics, and OptiFast tip loss products.Successful due in part to their unquestionable ability to keep major brands consistently in the forefront of consumers minds (and in their obtain carts) by renovating existing product lines, keeping major brands from slipping into intensiveness/decline and having weapons-grade access to distribution channels.WeaknessesTheir LC-1 member was not as successful as they thought it would be in France. In the late 1980s, Dannon entered the market with a health-based yogurt, and become the top selling brand of yogurt Nestls 1994 launch was understructure the product life cycle loop in an already mature market and could not compete against a strong, established brand.Growth in their organic food sales division was flat in 2008, even though the attention grew 8.9%.Since 2004 the breakfast cereal industry has been under fire from the FDA and the American Medical Association, both of which show that false claims of heart healthy and lower cholesterol need to be removed from packaging and advertising. They have also been forced to reduce the fare of sugar in their products, as parents advocates groups claimed they were contributing to the diabetes epidemic among American children.General Mills is an experienced, established brand and are the market leader in the USA, however, they have been lacking in innovation, have not cashed in on the booming health food craze and have been behind in creating new, niche products, especially in their yogurt division, where Yoplait is the entirely brand making a profit.In 2008, although their products did not carry the recalled pistachios, several of their ice cream brands, Dryers, Edys and Haagen-Dazs, were still plagued with unfit PR and loss of sales.OpportunitiesIn todays health conscious societies, they can introduce more health-based products, and because they are a market leader, they would likely be more successful.Provide allergen free food items, such as gluten free and peanut free.They launched a new premium line of higher cacao content chocolates dubbed Nestl Treasures Gold, in order to cash in on the recession economy in which consumers cut back on luxury goods, but regularly indulge in candy and chocolate. Americans want luxury chocolates, and high-end chocolate is immune to the recession (so far), because it is an inexpensive indulgence.Opened Nestl Cafs in major cities to feature Ne stl products.ThreatsAny contamination of the food supply, especially e-coli. Their Toll House brand cookie dough was recalled in march of 2009 because of e-coli. Outbreaks were linked to 28 states and the product had to be recalled globally. Nestl has yet to find out how this happened, and is still investigating.They were affected by the pet food recall in 2007, in which 95 different brands of dog and cat food was recalled due to contamination with rat poison. Also in 2007, FDA learned that certain pet foods were sickening and killing cats and dogs. FDA found contaminants in vegetable proteins imported into the united States from China and used as ingredients in pet food.Raw chocolate ingredient prices are soaring dairy costs alone uprise 50% in 2008, this cuts heavily into their profit margins and often gets passed on to consumers, by shrinking the packaging in a way that is almost unnoticeable-therefore the consumer is remunerative the same prices for less product.They have ma jor competitors, like Hersheys, Cadbury-Schweppes (owned by Pepsi), Lindt and Ghirardelli, Kelloggs, Post, Starbucks, Beech-Nut, Quaker, kraft paper Foods, Dannon, Del-Monte, Iams, Earths Best, Heinz, Frito-Lay (owned by Pepsi).ConclusionNestle can earn greater fork up from its distinctive competencies, i.e. unique strengths that allow a company to achieve superior efficiency, quality, innovation and customer responsiveness. By applying those competencies, and the products they produce, to foreign markets where indigenous competitors lack sympathetic competencies and products, Nestle can realize enormous returns.Furthermore, Nestle can disengage advantage of location economies. Location economies arise from performing a value creation activity in the optimal location for that activity, anywhere in the world. The optimal location for a value creating activity lowers the costs of value creation therefore helping the company achieve a low-cost position. Nevertheless, Nestle must eva luate basic entry decisions before submission an emergent market. The company has to make a choice among different foreign markets on the basis of their long-run profit potential. Nestle has to balance the benefits, costs. individual(a) CRITICAL REFLECTIONNestl S.A. is the largest nutrition and foods company in the world, founded and headquartered in Vevey, Switzerland. Nestl originated in a 1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lacte Henri Nestl Company, which was founded in 1866 by Henri Nestl. Nestl is often referred to as the most multinational of the multinationals with a manufacturing facility or office in nearly every country of the world. Nestl markets approximately 7,500 brands organized into the following categories baby foods, breakfast cereals, chocolate and confectionery, beverages, bottled water, dairy products, ice cream, prepared foods, foodservice, and pet care.Quality is the essential ingredient in all brands and the reason why millions of people choose Nestl products every day. Nestles consumers have come to trust in Nestls commitment to excellence and turn to Nestl brands to maintain nutritional balance in a fast paced world.Nestle has always delivered high quality products with reasonable prices and in different quantities and sizes. This tells us the way it is marketing its products. Even consumers from low level can have access to the product. This is one of the best features of Nestle.Even though, Nestle has undergone various problems in the past with respectfulness to the contamination of food product which has created bad impression in the minds of the consumers and has affected its reputation in the market. Still Nestle has put great effort in overcoming all its pitfalls by developing products of high quality and good nutritional value.Following are the sources which clearly gear up the way in which Nestle has delivered value to the custo mersNestle has well satisfied employees, who strives to attain the goals of the organization with enthusiasm and hard work. They constitute a major part of internal environment of an organization.Nestle has good expertise who are capable of delivering their ideas which can achieves the organizations goals and objectives.Nestle has very efficiently managed the market demand by proper market research.Nestle has adopted the best technology to produce its products.Nestle has made available their products in all most all the geographic areas of the world.Suggestions for Nestle to have improvement in delivering the value to customerNestle can have improvement in its RD department, so that the products produced by them are efficient to satisfy the needs of the consumers and deliver maximum value to the consumers.Nestle should have a through market research and identify the changing pattern in the market so that it can ensure greater value to its customers.Nestle should strive to produce en vironmental friendly products which are totally harmless and are capable of giving value to customers.Applying the above mentioned suggestion help Nestle to create a good reputation in the market and deliver greater value to the customers.Value created by advertisementAdvertisement plays an important role in promotion of products. It creates a direct link between the product and end users and there by deliver a long unyielding impact on consumers. Consumers can feel the products with the help of advertisements. They can understand the feature of the products before buying. Nestle has used both channels of distributions and advertisement for the promotion and distribution of the products.Nestls marketing mix includes the followingProductPricePromotionPlaceProductNestle has launched BEAR BRAND CHOCO which is a health drink specially for kids and moms. Aside from its irresistible chocolatey taste, BEAR BRAND CHOCO has the goodness of milk. Just like your trusted BEAR BRAND Filled Mil k Powder, it is fortified with resistance-building Zinc and Vitamin C. These are essential nutrients that help fight sickness and fatigue. BEAR BRAND CHOCO is nutritious and delicious with affordable price.PriceCustomers directly relate price to quality, particularly in case of products that are ego intensive of technology based. Nestle, being a company that emphasizes product quality, it tends to sell its products with price affordable to all.Market Penetration StrategyNestle has adopted market penetration strategy since they have to penetrate the market as much as possible and for them income is not so critical and rapid market penetration for eventual market control is desired Thus, the price for such product is very low.BEAR BRAND CHOCO is a budget friendly pack available in different pack size. BEAR BRAND CHOCO comes in two pack sizes, namely the 300g pack, which is good for 10 servings and the 60g pack, which contains 2 servings. A serving only costs P7.50*.PromotionNestle is mainly focusing on advertisements which is considered to be a very good medium of promotion. It has a good reach among the customers. Moreover Nestle has adopted various other modes of promotion like magazines etc.The Push Strategy maximizes the use of all available channels of distribution to push the offering into the marketplace. The Pull Strategies involves direct interface with the consumers. It focuses in advertisement rather than various channels of distribution. Thus, Nestle is focusing on both Pull and Push Strategy.PlaceNestle has targeted almost all the areas including rural areas and urban areas. In almost all the super-market and all other out-lets Nestle products are available. All the customers seem to be very happy with the availability of Nestle product in the market.Thus, Nestle has a good marketing mix, in which each component is capable of delivering value to the customers to the maximum extent.Marketing StrategiesInternational Strategies adopted by NestleNestls strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans.Nestl has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country. For example, Nestl produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution.Another strategy that has been successful for Nestl involves striking strategic partnerships with other large companies. In the early 1990s, Nestl entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Colas worldwide bottling system and expertise in prepared beverages.Nestle employ local staff. Local employees better know and understand the local culture and business procedures. This can result in a more efficient way to respond adequately to local demand conditions, therefore increasing the companys market share and profitability.Nestls strategy for business developmentNestle enters in an early stage the emerging markets, in order to establish a network there before competitors.Nestle simply purchases local brand names which the consumer is accustomed to. This helps the company to overcome cultural barriers and customer resentments to foreign brands.Nestles strategy is to establish a basis and then expand into more niches as demand rises.Other strategies adopted by NestleNestl established its expatriate army which is a group of about 700 managers who have a lot of experience in doing management activities in foreign countries. These managers are highly educated and trained in order to enable them a worldwide field of operations.Another approach is to form SBUs. These units formulate the high level strategic decisions on a worldwide basis, while each of these SBUs focuses on a spec ific segment chocolate, infant food, cereals, coffee etc.Overall strategy development such as acquisition and market entry strategy these SBUs form an important part of the companys decision making and operating process.Components of a professional marketing planThe Marketing Plan is a highly detailed, heavily researched and, hope in full, well written report that many inside and possibly outside the organization will evaluate. It is an essential document for both large corporate marketing departments and for startup companies. Essentially the Marketing PlanForces the marketing personnel to demeanor internally in order to fully understand the results of past marketing decisions.Forces the marketing personnel to look externally in order to fully understand the market in which they operate.Sets future goals and provides direction for future marketing efforts that everyone within the organization should understand and assist.Is a key component in obtaining funding to pursue new initi atives?The Marketing Plan is generally undertaken for one of the following reasonsNeeded as part of the yearly planning process within the marketing functional area.Needed for a specialized strategy to introduce something new, such as new product planning, entering new markets, or trying a new strategy to pickle an existing problem.Is a component within an overall business plan, such as a new business proposal to the financial community?In this project Following components are usedPurpose and MissionSituational AnalysisMarketing Strategy and ObjectivesAdditional ConsiderationPrior knowledge with regard to the learning outcomesIf the market is very attractive and enterprise is one of the strongest in the industry you then the organization should invest best resources in support of their offering.If the market is very attractive and the enterprise is one of the weaker ones in the industry then it must concentrate on strengthening the enterprise, using their offering as a stepping sto ne toward this objective.If the market is not especially attractive, but the enterprise is one of the strongest in the industry then an effective marketing and sales effort for their offering will be good for generating near term profits.If the market is not especially attractive and the enterprise is one of the weaker ones in the industry then the organization should promote their offering only if it supports a more profitable part of your business or if it absorbs some of the overhead costs of a more profitable segment. Otherwise, the organization should determine the most cost effective way to divest the enterprise of this offeringComments on the learning process undergoneWhile undergoing learning process, I was able to apply various concepts which were taught in the classrooms to the practical situations which Nestle has under went in their way of doing business.I could analyze the importance of various factors which were directly link to the success of the business like the ap propriate mix of marketing components called product, price, promotion and place.I could relate various marketing concept which were studied in the text books like pull and push strategy and pricing strategies like price skimming and price penetration.I could understand the market mix in dept and it was a great experience to find out what happens when there is a slight change in the marketing mix of an organization.I could understand the strategies which Nestle has followed from time to time in order to set out and gain competitive advantage.I could understand how organizations take strategic decisions in the long run and what the effects were if the strategic decision does not work well.Questions and answers with regard to the learning outcomesHow will an organization develop a clear idea about the changes in the consumers change in tastes and preferences?Answer An organization can have a clear idea of changes in the consumers tastes and preferences by having a detailed marketing research in all most all the aspects of market.How can an organization make changes in their marketing mix?Answer An organization can make changes in their marketing mix by gaining a detailed idea about what consumers tastes and preferences are.How does an organization fix its pricing strategies?Answer Organizations usually fix there prices as per the cost incurred to them plus the profit margin. Sometimes pricing strategy greatly depends on the target group for whom the product is produced.Thus, we can identify how different marketing functions and marketing concepts are inter-related and how a slight change in one affects the other.

Critical Reflection On Corporate Social Responsibility Projects Accounting Essay

Critical Reflection On collective Social Responsibility Projects Accounting EssayThe aim of this makeup is to provide a critical reflection considering the ethical al adeptude of raft of the CSR projects which companies argon change magnitudely launching with the global emerging trend of somatic social responsibility in the business world today. The purpose is to tax the objectives of these campaigns, comparing if they atomic number 18 rather actions targeting bread or/and better collective image or if they argon truly altruistic actions driven by the increase of the c erstwhilern involving the global issues nowadays.WHAT IS THE PURPOSE OF A CORPORATION?Indubitably, this incertitude has been widely discussed for many years, as great theorists manoeuvre different point of views, arguing that either the primary objective of an cheek is to maximise range or to be devoted to its mission and essenti tout ensembley satisfy the s beat backholders needs.fundamentally there a re two main theories shareholder value scheme and stakeholder scheme. The prototypal one argues that the hardly objective of a company is to maximize profit and generate value to its shareholders. At the different extreme is the stakeholder theory, which suggests that the memorial control boardt non only should make profits and create value to the shareholders scarce also please their stakeholders, such as customers, employees, suppliers, local communities, and society at large. (Morgan Stanley, 2008) unrivalled of the earliest precursors of the shareholder value theory is Milton Friedman that emphasized onceSo the question is, do embodied executives, provided they stay within the law, apply responsibilities in their business activities other than to make as a great deal specie for their stockholders as possible? And my answer to that is, no they do not. (Friedman, 1974)On the other hand, Dave Packard the co-founder of the Hewlett Packard proposed a distinctive cause for company existenceI regain many people assume, wrongly, that a company exists simply to make money. opus this is an important result of a companys existence, we have to go deeper and find the strong reason for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an creation that we call a company so that they are able to strive something collectively that they could not accomplish separatelythey make a contri aloneion to society, a phrase which sounds trite but is fundamental. (Packard, 2002)The ground of the stakeholder theory is not out-of-the-way(prenominal) from the corporate responsibility concept or trend, which undeniably attract much attention in the move years. As the theory, CSR objective is to determine all the stakeholders and pursue a balance between the main concerns and goals of each one of those (Morgan Stanley, 2008). While Friedmans and Packards points of views represent extremes opinions, o thers have promoted a mid-term approach. Peter Drucker, for example argued that a middle ground is essential for one business to be considered favored as expandd on the statement bellowA business that does not show a profit at to the lowest degree equal to its be of capital is socially irresponsible it wastes societys resources. Economic profit operation is the build without which business cannot discharge any other responsibilities, cannot be a safe employer, a good citizen, a good neighbor. But economic performance is not the only responsibility of a business Every organization must assume responsibility for its impact on employees, the environment, customers, and whomever and whatever it touches. That is social responsibility. (Drucker, 1954)All in all, the fact is that there are many respective(a) opinions among specialists and executives. Therefore, in my opinion the CSR of one company is influenced mainly according to the beliefs and determine of its leaders, especial ly the CEO, rather than the mission statements of the organization.CORPORATE SOCIAL RESPONSIBILITY IS change magnitude AS A TREND BUT DECREASING WITHIN COMPANIES sooner analyzing more extensively the corporate social responsibility as a trend within the companies, I truly believed that the CSR practices were substantially change magnitude. However afterward reading the 2008 Morgan Stanley publication about the topic, I was surprised with the results.Considering the methodology use by Morgan Stanley, It seems that the overall real concern of CSR is diminish over the last 15 years. Although the organizations might be invest more in CSR projects, the cost/harmfulness caused by the companies is increasing on larger scale. So, this means that the interdict actions are not being covered by CSR practices. Instead, the careless with CSR is increasing much more than the projects as could be analyzed in the table below. KLD defines a set of potentiality strengths (for example, charit able giving) and a set of potential concerns (e.g., hazardous waste). For each company, KLD assigns a value of 1 if the strength or concern exists and a 0 otherwise.(Morgan Stanley, 2008)In conclusion, besides the strengths are increasing, the concerns are rising more rapidly and the net value of the strengths minus concerns is decreasing each year. Evidently, that the result presented could be argued and probably other studies with different methodologies could show diverse outcomes. However, I personally like the methodology because not only shows what companies are doing well but also consider what they are doing wrong. Nevertheless, in my opinion does not matter if they are investing more if they are depreciating even more.Even though, companies are not emphasizing CSR as I would expected so, unquestionably the trend is increasing within the society, followed by the pressure for new management practices and concerns with the environment.A good evidence to illustrate that hypothe sis is the rise of the relevance and coverage of this topic at the universities. One view conducted by Lisa Jones Christensen in 2007, aimed to further investigate the importance of CSR, morals and Sustainability at the top 50 global MBA course of instructions. The results showed that 84% of the schools that responded oblige students to take courses of one or all of these subjects. Even more 25% delineated a stand-alone course. Comparing with The Ethics Resource Center study conducted in 1988, when 75% of Ethics, CSR, and Sustainability Education were a required part of the program and only 5% of the MBA programs required a separate course on ethics. (Christensen, Peirce, Hartman, Hoffman, Carrier, 2007)Summarizing, in my point of view CSR is a relevant subject and it is an increasing trend among the society, however companies are not giving the importance they should to these practices. Moreover, as testament be presented on the next section, companies could gain more profits with a different approach of CSR.COMPANIES INVEST IN CSR AS kernel TO MAXIMIZING VALUE OR TO DO THE RIGHT THING AS AN END ITSELF?As Michael Jensen discuss in the article Value Maximization, Stakeholder Theory, and the Corporate Objective Function, published by the Journal of Applied Corporate finance in 2001, there are two alternative reasons for organizations to finance CSR initiatives. The first one is known as the moral theory, which CSR considers organizations as good corporate citizens by losing profits when necessary to serve other stakeholders, including society at large (Jensen, 2001). Above all, corporations have responsibilities to their customers, employees, and communities that should be given at least equal priority with their economic goals for their shareholders. On the other hand, the economic theory for CSR suggests it as a positive-NPV investment. More simply, presume CSR as the same as any business investment decision Invest in all essential stakeholders if ther e are expected returns, at least alike to the cost of capital. (Morgan Stanley, 2008)Nevertheless, the main question to address is why companies are investing in CSR? For economic reasons, expecting returns, or they are really concerned and are investing with moral arguments? To answer that question, once again I will reference the Morgan Stanley study.The article states the premise that corporations that are more disposed to repress shareholder returns for stakeholders would probably invest not only to increase their CSR strengths but also to decrease their CSR concerns. In other words, those organizations would adopt the idea of First, do not harm. Therefore, such companies would make efforts both to increase their CSR strengths and reduce their CSR concerns. In contrast, companies concerned with the returns of the investment in CSR would give priority on expression their strengths, as many of them do it to make a public display of ones progress, instead of focusing their effo rts to address the weaknesses. Especially because usually is very pricy to eliminate many CSR concerns.As I predicted, the results shows that companies invest on CSR projects in the first place to maximize value rather than endorse stakeholder commitments as an end in itself. This means that businesses are financing CSR to strengthen their attributes instead of eliminating the CSR concerns.However, the most raise factor is that the same research found that companies with more CSR strengths or fewer CSR weaknesses presented higher returns. This suggests that financing CSR initiatives generates profit and long-term value maximization, as could be observed in the graph below. Even more, companies which focus on reduce the concerns and thinks primarily on the stakeholders rather than profits, in a long draw in makes better results that corporations which allocate resources on strengthen their CSR attributes and have the economic approach. In other words, being ethic and altruistic c onsidering the investments is more profitable (Morgan Stanley, 2008)(Morgan Stanley, 2008)

The Importance Of Reward Management Business Essay

The Importance Of Reward heed Business EssayReward charge in a assembly line musical arrangement is basic eachy the way in which that particular parentage pees and implements strategies and policies to remunerate the employees to a fair shopworn and in accordance with how the plaque values them. Reward focus in a product line fundamental law usually consists of the business analysing and controlling the employees remuneration and all of the other benefits for the employees.The main aim of final rightment commission in a business system is to come back the employees fairly for the accomplishment that they save completed. The main reason abide by focussing exists in business brass sections is to motivate the employees in that particular organisation to work hard and try their best to win the goals which atomic number 18 set out by the business. Reward worry in business organisations not only consist of financial recognises such as pay but they overly consist o f non-financial quits such as employee recognition, employee instruction/ phrasement and ontogenesisd job debt instrument.Reward counsel in a business organisation deals with the design, implementation and maintenance of reenforcement practices that ar accommodate towards the improvement of the business organisations movement.The Importance of Reward ManagementThe elements of reinforcement worryment within a business organisation ar all the things that they call to attract authorization employees into their business which embroils salary, bonuses, incentive pay, benefits and employee growth opportunities such as professional development and training opportunities. Having a advantage management establishment of rules in set provides the business with many advantages, especially in down in the mouth to medium size organisations where the managers moldiness(prenominal)(prenominal) make water a good alliance with the employees. Reward designs have proved to be very successful in motivating employees and in shepherds crook glide slopeion the performance of the organisation as a whole.Below atomic number 18 some of the reasons why a reward corpse is master(prenominal)Mutually good- A reward dodging is beneficial not only to the employee but also to the organisation. The employee pull up stakes feel more motivated to work harder.by having a reward system in shopping centre the employee volition feel more committed to their work and their productivity allow increase. An increase in productivity lead thusly benefit the organisation. thereof a reward system is mutually beneficial to the employee and the organisation.Motivation-A reward system leave behind motivate employees by reaching targets and organisational goals in exchange for rewards. A reward system is great at motivating employees but they lead also be motivated to prove themselves to the organisation.Absenteeism-A reward system go forth reduce absenteeism in the or ganisation. Employees like universe rewarded for a job swell done and if there is a reward system in place, employees will be less likely to be ringing in be sick and not showing up for work. Also by having a reward system in place the employees will be cle atomic number 18r close the targets and goals of the organisation as they will be rewarded when reach certain targets. So by having a reward system as an incentive they will be less likely to be absent from work.Loyalty-A reward system will increase the employees loyalty to the organisation. By a reward system organism in place the employee feels valued by the organisation and knows that their opinion matters. If an employee is golden with the reward system, they are more likely to appreciate work place and remain loyal to the organisationMorale-Having a reward system in place providing employees with incentives and recognition will boost their morale. By encouraging employees to mate goals and targets it features them cle ar focus and purpose which will their morale. By the employees morale being boosted this will increase the morale of the entire organisation. This is all down to a reward system in the organisation.Teamwork- The reward system will increase the teamwork spirit in the organisation. The reward system will promote teamwork to the employees. The employees will work together as part of a team to touch their targets in return for rewards. Teamwork within the organisation will supporter increase efficiency and create a happier workplace. This is another reason why reward systems are important in business organisations.Types of Reward SystemsThere are several ways to classify rewards the three most common types are as followsIntrinsic Rewards Vs Extrinsic Rewards-Intrinsic rewards are the personal joy you get from the job itself eg having pride in your work, having a feeling of acquirement or being part of a team. If an employee experiences feelings of achievement or personal growth from t he job, this would be labelled as an intrinsic reward.Extrinsic rewards would include money, promotions and other benefits. Extrinsic rewards are external to the job and come from an orthogonal source, usually management. If an employee receives a salary increase or a promotion, this would be labelled as an extrinsic reward.Financial Rewards Vs Non-Financial Rewards-Financial rewards are those that will enhance the employees financial well-being directly eg bonus, increase in payoff and profit sharing schemes.Non-financial rewards do not enhance the employees financial smear directly but make the job more attractive. Some of the Non-financial rewards that a business organisation offer might include-an attractive pension scheme, access to private medical care, help with long-term sickness, crche facilities, counselling services, round restaurant etc.Performance-Based Rewards Vs Membership-Based Rewards-The rewards that a business organisation gives to their employees can be based on either their performance or membership criteria. Performance-based rewards are exemplified by the use of commissions, piecework pay intents, incentive schemes, group bonuses, merit pay or other forms of pay for performance plans.Membership-based rewards would include cost of liveliness increases, benefits and salary increase, seniority or time in rank, credentials or future potential.Case Study gobbler Warner owned a plumbing, modify and air-conditioning business in Montgomery County,Maryland. In the early 1990s, he face a major problem. His main customers were commercial property management businesses and they substantialed to cut costs. In society to do this these commercial property management businesses decided to end their contract with Tom Warner and hire their own handymen.Tom Warner didnt postulate to lay off any of his 250-person workforce. He decided to hypothesize his workforce into territories. He assigned each worker their own dominion and told them to oper ate their territory as if they were running their own business. He swan each theatre of operations director through training in gross sales techniques, budgeting, negotiating, cost estimating and how to handle customer complaints.Warner believed that if he had technically superb, friendly, and ambitious employees, they could successfully operate like small-town handymen, even though they would be part of a large organisation.Tom Warners programme proved to be very successful. The area directors developed a strong sense of pride and ownership in their territories. Each employee was qualified to schedule their own work, handle their own equipment, develop their own estimates and advertising campaigns. These were the rewards that each employee desired.Tom Warners programed increased the employees wages. A emblematic employee working for Warner before he introduced the programme was earning $60,000.In the first year of the programme that employee was earning $100,000.In the second year he was earning $125,000.From a reward point of view, Warners employees are passing sharp and Tom Warners business grew by more than two hundred per cent in 24 months.Literary Review concord to the criminal record Human Resource Management in Ireland 3rd edition by Patrick Gunnigle, Noreen Heraty and Michael j. MorleySchuler (1995) outlines a number of core objectives that a business organisation should have in relation to the reward package that they offer.Schuler states that in order for a business organisations reward package to be successful it must outfit the following objectivesIt should attract potential employees- along with the organisations human imagery plan and recruitment and selection techniques the reward package should make potential employees want to work there. The reward package including its mix of pay, incentives and benefits should serve to attract fit potential employees.It should assist in keep oning good employees- the reward package must be perce ived internally by the employees as fair and upright and it should be perceived externally as competitive. Internally the employees should feel happy with the reward package and they should know that in comparison to other businesses it is a very competitive reward package so they wont want to leave and call ink employment elsewhere.It should motivate employees- the reward package should help and assist motivating employees to work harder. By linking rewards to performance it should motivate employees to work harder as there is an incentive element.It should contribute to human resource and strategic business plans- the reward package should create a rewarding and collateral climate to work in and therefore it should be perceived as an attractive place to work. This will benefit the business as it will be attracting the best applicants.Reward management in business organisations is extremely important as the reward package helps to attract employees, retain employees and twist p erformance and behaviour at work.According to the book People Management and Development Human Resource Management at Work by Mick Marchington and Adrian WilkinsonLawler (1984) feels that a reward system within the business organisation can enchant a number of HR processes and practices, which then have a direct blow on the organisations performance as a whole.Influence recruitment and retention Lawler states that any business organisations that have a reward system in place will attract and retain the most people. If better performers are rewarded more highly than poor performers. This also will have an effect on recruitment and retention, so performance-based systems are more likely to attract high-performers.For Example If a business organisation rewards their employees with high wages, they will attract more applicants which will allow the business more of a choice over selection and hiring decisions. This hopefully will reduce labour turnover in the organisation.Influence Mot ivation Employees see that by having a reward system in place, it puts an importance on various activities and tasks. Reward systems therefore have a motivational impact on the employees. However the management must integrate the reward system with the behaviour they expect from the employees.Influence Corporate Culture The way in which the employees are rewarded will have a huge influence on the corporate culture of the organisation.For example If a business organisation has a reward system in place that provides benefits for long-serving staff, this will likely set the existing culture into one where loyalty is seen as central to the business organisations ideology. In contrast, if a business organisation has a reward system in place that rewards the employees for innovative behaviour and ideas, this is more likely to order the businesses corporate culture into one where creativity and innovation is important.Cost as an influence Cost is a huge factor and influence in the reward system. Some business organisations whitethorn not be able to afford to set up and maintain the reward system it may be too costly for them. On the other hand, some business organisations may not want to waste the money on a reward system. This may demotivate the employees as they will think that not value it and this will have a direct impact on their performance in the organisation which in turn will in turn have a direct impact on the organisations performance as a whole.According to the book Human resource management in Ireland 4th edition by Patrick Gunnigle, Noreen Heraty and Michael j. MorleyLawler (1977) highlights that in order for reward management to be successful the reward system needs to have the essential characteristicsReward level- In order for reward management to be successful, the reward package must satisfy the employees basic needs for survival, security and self-development. unmarriedity- on with satisfying the employees basic needs, the reward system shoul d be flexible comely to meet the employees varying individual needs.Internal equity- The rewards must be seen as fair when compared to others in the business. The criteria and reasons for the allocation of rewards to employees should be equitable and clear to everyone in the organisation .The reason behind the allocation of rewards to employees should be communicated and accepted by all parties. The rewards should be applied consistently throughout the organisation.External equity- The rewards must be seen as fair when compared to those offered for comparable work outside the organisation.Trust- In order for reward management to be successful in the organisation, the management and the employees must believe in the reward system 100 per cent. The employees must believe and accept that will receive rewards when they meet the relevant criteria. The management should trust that the employees will perform at a high standard and the best to their ability in return for rewards.According to Lawler (1977) in order for a business organisation to be successful in reward management, he believes that a reward system must have the characteristics listed above.According to the book Human resource management 6th edition by De Cenzo and RobbinsArmstrong and Murlis (1998) offer some broad distinctions between the main types of reward systemGain Sharing Schemes-the pay of a group of workers is linked to improvements in internal conjunction productivity.Employee Stock Ownership Schemes (ESOPs)-The business organisation offers company stock (at a lower rate than normal) to certain employees.Profit-Sharing Schemes-The business organisation gives a certain percentage of the end of year profits to the employees.Skill-Based expect Schemes-The business organisation rewards the employees with pay on the basis of job-related skills or competencies.Individual Incentive Schemes-The business organisation rewards the employees for reaching or exceeding unique(predicate) established perf ormance criteria. Piece- rate schemes are the most obvious form of individual performance related rewards.Group Incentive Schemes-The business organisation rewards groups of employees with the same principles they use on individual schemes. Used most unremarkably when group work or team work is present in the business organisation.ConclusionTo conclude I am going to give a brief run through the topics I have cover throughout this report.I defined and explained the meaning of what reward management is and how organisations manage rewards in organisations. I then went on to discuss the importance of reward management within organisations, by doing this I pointed out the advantages of having reward systems in an organisation. These benefits included mutually beneficial, increases motivation, improves morale, increases the employees loyalty to the organisation, improves teamwork and reduces absenteeism. I looked at commonly utilize reward schemes. I looked at a case study about Tom Wa rner was forced to reward his employees with a huge amount of responsibility however it had an extremely successful outcome for him. I then looked at the main aims that every reward system should have attract potential employees, assist in retaining good employees, motivate employees, contribute to human resource and strategic business plans. I explained the direct impact a reward system can have on the organisation as a whole ie influence on performance, influence on motivation, influence on the corporate culture.I looked at and explained the essential characteristics a reward system must have in order to be effective. This is important for management when designing their reward system. They should look at and evaluate their true reward system and make sure it possesses the right characteristics. I then differentiated between the most common types of reward schemes according to search I found on Armstrong and Murlis point of view on reward systems.

Comparison of Marxism and Capitalism Political Theories

Comparison of Marxism and capitalism policy-making TheoriesLinking Political Theory to Contemporary PoliticsAlisha N AncumAbstractA policy-making theory, by definition is the study of concepts and principles that large number use to describe, explain, associate, and survey events and institutions in society(Girvetz,2013). I will be comparing and contrasting devil major political theories, capitalisticic economy and Marxism. Their contrasting ideas argon brings about a vast difference in their beliefs. But despite this, they do eat up some similarities in their varied forms. These two political theories take a leak their advantages and disadvantages as they relate to politics, law, business, history and especially devotion. Marxism beingness the younger of these two, builds on its cause socio- economic model, but to a fault offers a critic of capitalism. Both theories have shaped the nature, structure and politics of various nations from the industrial age to exemplify d ay.Linking Political Theory to Contemporary PoliticsPolitical theory is abranch of political science concerned chiefly with the ideas of past and turn in political thinkers and the doctrines and proposals of political movements and groupsdiscussion of the proper scope of g all overning bodyal action has usually been regarded as a proper part ofpolitical theory F.W.Coker (Political). This paper will study and contrast two major political theories, Marxism and Capitalism. These two political theories atomic number 18 significantly different from each other, but also in the varied forms have some very similar characteristics. Capitalism and Marxism have both shaped the nature, structure and politics of various nations from the industrial age to present day.Marxism developed among the European working class of the 19th century. Marxism is the brain shaver of German philosopher Karl Marx (1818-1883). Karl Marx started the socialist movement (Roskin,Cord,Mederiros, J mavens,2013). K arl Marx was trained in Hegelian philosophy, and kindled a complex theory covering economics, social class and history. Marx unsexed that things dont just carry on by accident, and everything has a cause. At the core of Marxism, it is believed that property return and the dissemination of wealth argon subject to social control. Hence the regimen has a role in the economy and social life of a nation. In a Marxist system, the means of production is own by society, with the level of ownership varying from total control to partial. The peak form of Marxism is communism, as practiced in Cuba. Less extreme forms take the form of collectivism or social democracies as in some countries such as, Scandinavia.Capitalism dates back to 16th century Europe, and became the dominant system in westward Europe. The basis of this system is ownership and control of the means of production by personal one-on-ones, with very little or no regimen intervention. In a Capitalist system, not onl y are the means of production not subject to government intervention as well as religion, social amenities and property rights. After the industrial revolution in Europe, capitalism was exported to the four corners of the world. At the core of the capitalist system is the unbosom market. Free from societal control, the apologise market is believed to be self-regulating and in camera possess. Capitalism is the brain child of Adam Smith. Adam Smith authored The riches of Nations, which is considered today as the capitalist bible. Capitalism creates a laissez-faire economy. These theories posit that the wealth and well-being of any nation is based on the keep down of goods and services her citizens produced. Smith argues that government intervention in the economy retards growth. This is so, because whenever one company or person (government) has a monopoly over the means of production, this kills competition, and with it, efforts to produce new goods and lower prices. This theor y has taken the name of Liberalism, meaning people living as liberal as possible from government racket. upstart liberalism is what we called conservatism in America today. At the heart of this theory are still the core tenets of Adam Smiths philosophy. Core values include a strong free market and very minimal government interference in the lives and means of production of the nation. Edmund Burke (1729-1797), an 18th century American philosophy agrees with Adam Smiths theory. He believed the free market economy is the ruff system (Roskin, et al., 2013). He was also very supportive of the American colonies that were armed combat for their basic freedoms. advanced(a) font conservatism in America has been reinforced by the writings of Milton Friedman (1926-2006), a Nobel Prize winning economist. Friedman argues that Adam Smith was right, and the free market economy is still the best system. Friedman also believes whenever government intervenes in the free market and society, it m esses things up (Roskin, et al., 2013).some(a) of the major differences mingled with Marxism and Capitalism is their approach to traditional values especially religion. In a competitive society, the freedom of religion worship is vigorously protected as an individual natural right. Hence government interference in faith matters is frowned upon. In present day America, modern conservatives advocate a society where government protects the religious freedoms of individuals. They want prayer in public places, the ban of miscarriage and same sex marriage (Roskin, et al., 2013). Modern conservatives in America also oppose any special rights for women and minority groups especially when they perceive it to be contrary to the dominant religious discovers of today. As a result, any forms of decree affecting these spheres of society are viewed as an intrusion by government on the individual freedoms of people.Marxism on the other get to, views religion very negatively. morality is the o pium of society he wrote. Vladimir Lenin, a Bolshevik socialist said religion slows down economic growth. Religion is viewed in Marxist societies as a tool by capitalist elites to control the masses. Hence religion is frowned upon. Some countries which practiced strict forms of Marxism developed varied form of state godlessness for example the former Soviet Socialist Republic and the Peoples Republic of China. Today, some Marxist or socialist countries have eased the ban on Religious worship. musical composition the stigma still exist, only in extreme cases like North Korea, where religion is banned.In present day America, the conflict over the role of government in matters of faith runs very deep. This has created a very polarized polity. With Republicans made up of predominantly modern conservatives are vehemently opposed to rights being reported by the government to gay couples (Roskin, et al., 2013). Modern conservatives view marriage as a matter of faith, with no destiny t o digress from its religious definition. They view the extension of marriage rights to gay citizens by the pop Party as an infringement of the religious freedoms of the citizen. Modern conservatives view this threat to the individual rights of the citizen as posited by Adam Smith, Edmund Burke and Milton Friedman. The Democratic Party and its socially liberal base, view the intervention of the state to extend the right to marriage to gay couples as an important role of government. This being a core tenet of Marxism which suggests that government must be compound in certain aspects of society, to ensure equal rights among the citizens.Another major difference between the two political theories is how they perceive the right to property. In the capitalist system, property is viewed a means of production and should be privately owned and controlled. Government was to protect the right to private ownership of property, with no interference. While capitalism recognizes some form of pub lic property, it forms a very smooth portion of capital goods. The private ownership of property covers both tactual and intangible property. Hence businesses are privately owned and control, with little or no interference from government. A capitalist society has laws prohibiting the seizure of private property on individuals.In a Marxist system, property is viewed as a public good. While in varied forms, private ownership of property is abandoned, the majority of property for the production of goods and services are owned or controlled by the state. This is believed to be the best possible way to fare wealth from the rich to the poor. In so doing, the Marxist believes, equality, growth and cosmopolitan welfare are achieved. Hence in most countries where various forms of Marxism are practiced, the state controls major sectors of the economy like energy production, health anxiety etc.In 2009, the Obama administration and their Democratic majority passed the Affordable health care Act, which was vigorously opposed by Republicans and conservatives who viewed this as a government takeover of a major part of the free market. Democrats and their Liberal ally argued the law was necessary to protect and provide health care to over 20 million Americans who couldnt afford health insurance in the free market. This issue is still a major rallying call for modern conservatives in America today.While there are clear differences between these political theories, there are also some minor similarities. For example, in both systems, there is the possibility of social mobility. While the Marxist tries to drop dead class structures, and the capitalist systems survives on a class structure. Individuals have the probability to move up the social strata in both systems. Both systems allow government statute of business, contracts, and markets however the degree of regulation varies between both. The capitalist favors very little regulation, believing more in the unseen h and of the market to regulate it. The Marxist system, believes in providing more intrusion and regulation by the state (Roskin, et al., 2013). For without state regulation, the markets will run wild goaded by profits, this is evident by the world economic crisis of 2008.ReferencesGirvetz, H. k. (2013, June 5). Liberalism . InEncyclopedia Britanica. Retrieved March 3, 2014, from http//www.britannica.com/EBchecked/ bailiwick/339173/liberalismPolitical Theory. (n.d.). InMerriam-Webster online. Retrieved fromhttp//www.merriam-webster.com/dictionary/political theoryRoskin, M. G., Cord, R. L., Medeiros, J. A., Jones, W. S. (2013).Political Science An Introduction(Thirteenth ed., pp. 21-49). N.p. Pearson.