The Political Environment Of Business

The Political Environment Of Business Business environment consists of all those factors that have a bearing on the business, such as the strengths, weaknesses, internal power relations and orientations of the organization; government policies and regulations; nature of the economy and economic conditions; socio-cultural factors; demographic trends; natural factors; and, global trends and cross-border developments. Business Environment Interrelationship Any meaningful organization has certain mission, objectives and goals and a strategy to achieve them. Business environment has a bearing on the shaping of all these integral and interrelated elements. It is, therefore, only very appropriate that formulation of strategy is sometimes defined as establishing a proper firm environment fit. Indeed, the mission /objectives/goals themselves should be based on an assessment of the external environment and the organizational factors (i.e. the internal environment ). A SWOT analysis (analysis of the strength and weaknesses of the organization and opportunities and threats in the environment), therefore is one of the first steps in the strategic management process. Business dynamics , to a large extent , is a dependent factor it depends on , inter alia, the environmental dynamics . hence , the importance of environmental analysis . The external environment has , broadly , two components , i.e., business oppourtinities and threats to business . similarly , the organizational environment has two components : strengths and weaknesses of the organization .thus , strategy formulation is properly pitting th organizational factors (internal environment ) against the opportunities and threats in the external environment . In other words , business decisions are conditioned by two broad sets of factors , i.e., the internal environment and the external environment. Business Decision A SWOT analysis therefore is one of the first steps in strategic management process . business dynamics, to a large extent , is a dependent factor it depends on , inter alia , the environmental dynamics. Hence, there is a importance of environmental analysis . Types of environment On the basis of the extent of intimacy with the firm , the environmental factors may be classified in to different types or levels . as indicated above , there are , broadly two types of environment , the internal environment , i.e., factors internal to the firm and external environment , i.e., factors external to the firm which have relevance to it . The internal factors are generally regarded as controllable factors because the company has a control over these factors ; it can alter or modify such factors as its personnel , physical facilities , organization and functional means , such as marketing mix , to suit the environment . The external factors , on the other hand , are , by and large , beyond the control of a company. The external or environmental factors such as the economic factors , socio-cultural factors , government and legal factors , demographic factors , geo-physical factors etc., are , therefore, generally regarded as uncontrollable factors . It may , however , be noted that a firm may not sometimes have complete control over all the internal factors . also , it is some times possible to change certain external factors. Some of the external factors have a direct and intimate impact on the firm ( like the suppliers and distributors of the firm ) . these factors are classified as micro environment , also known as task environment and operating environment . there are other external factors which affect an industry very generally ( such as industrial policy , demographic factors , etc . ). They constitute what is called macro environment , general environment or remote environment . Business environment Dimock observes : the two most powerful institutions in society today are business and government ; where they meet on common ground-amicably or otherwise together they determine public policy , both foreign and domestic , for a nation The political environment includes factors such as the characteristics and policies of the political parties , the nature of constitution and government system and the government environment encompassing the economic and business policies and regulations . these factors may vary very considerably between different nations , between different provinces of the same nation and also over time. The major economic policy decisions often have political underpinnings. The adoption, in the early 1950s of the principle of socialist pattern of society as the socio-economic philosophy by the congress party, which ruled India until 1995 except for a brief period (1977-1980), was mainly responsible for the public sector dominated development strategy followed in india until the early 1990s. It is indeed the dramatic changes in the political environment in the erstwhile USSR and the East European countries that gave rise to drastic changes in their economic policies in the late 1980s. And these developments have encouraged a revolutionary change in Indias economic policies in 1991. Peter Drucker in the Management Challenges for the 21st century observes : Even within transactional economic units , national politics still over rule economic rationality despite the European economic community, for instance, it has proven all but politically impossible to close a totally redundant plant in Belgium and shift the work to a French plant of the same country only 30 miles away, but on the other side of a national border. Many political decisions have serious economic and business implications. The economic policy of ruling party is very important. In the past communists and other leftists favored state capitalism and were against private capital, particularly foreign. Important economic policies such as industrial policy, policy towards foreign capital and technology, fiscal policy and foreign trade policy are often political decisions. Business is an economic activity. But to be effective, business mangers, must also take into consideration the non-economic environment of business. One should give importance to politico-legal environment of business. The Government is a political institution, but it also serves a social purpose, it formulates and executes social policies , it provides the means of maximizing social benefits and minimizing social costs. In other words, the Government itself has a social value and culture. In the modern world, business of any type any structure and any size is often affected by Government polices, programmes and legislations. The Government has its own form, structure, style and ideology or outlook. Business has to organize its activity, and the businessmen have to define their respective business strategy and business tactics depending upon the nature of the Government at work . In other words, business policy decisions are designed according to the Governments overall policy and environment of the system. The ideology or philosophy or outlook of the government of every country enacts and executes a set of policies and programmes. few of the policies are being executed through legislations. The politico-legal environment constitutes the legislations and enactments, rules and regulations, systems and procedures, policies and plans, statements and announcements, directives and guidelines by the Government . To become a successful manger, one should take into considerati on the political environment of business, and then capitalize on the opportunity available in Business environment. The political environment of business consists of several critical elements, e.g., the nature and form of government, the ideology of the ruling party, the strength of the opposition, the role and responsibility of the bureaucracy, political stability, the effectiveness of the Government, its plans and programmes, the socio-economic legislations, and politico-legal institutions, etc. The political environment of business contains a number of critical elements: The Form Of Government Gone are the days of Laissez fare, government intervention to some extent in business activity every where in the world is a rule rather than an exception. So, the form and structure of the Government is a very crucial and decisive factor for the business sector. Following examples may be cited to illustrate this point. As it is said that in democracy such as in India , we have government of the people, by the people and for the people. Peoples participation is so important that even at the enterprise level, we seek workers participation in management, i.e., industrial democracy . Under a federal form of government, we tend to confine the authority of the Central Government with respect to the functional autonomy of the State Governments and, due to this, we allow both Central as well as State level public enterprises. In the same way, the principle of democratic decentralization, authorize even the local Government to collect some business taxes and spend money on local activities. Thus, the system of government and the structure of administration affects business. And in order to secure maximum favor from the existing Government, businessmen also create their own lobby and this factor partly decides whether the Government adopts pro business or anti business measures. For example , as India is a democratic country (or peoples government) , to help medium and small scale entrepreneurs , it has been undertaking several steps like setting up of banks and financial institutions; formulating various policies and schemes, etc. All such measures are specifically focused towards the promotion and development of medium and small scale entrepreneurs. The government (central and state ) has been taking active steps to promote entrepreneurship in various industry and service sectors. It has declared several policies and also implementing schemes and programmes to enhance the global competitiveness of small enterprises across the country. The Ideology Of The Ruling Party In a democratic set up, like in India, the ideology of the ruling party influences ownership , management structure and size of business. rightist inclination of a ruling party may formulate liberal pro-business policies, whereas a leftist bias of a ruling party will develop measures like nationalization and excessive centralization. So the ideology or outlook of the ruling party may help or hurt the core of business activity. Earlier, our government favored progressive income taxes and opposed unregulated business and finance. In recent years they followed centrist economic and social democratic agenda. But , today our ruling party focuses on neo-liberal policies which includes social liberalism secularism and free enterprise system with government regulations. Under the regime of Mr. P. V. Narasimham Rao and then finance minister Dr. Manmohan Singh, significant economic reforms were initiated and more stress was given on efficiency rather than equity considerations. This affected the work ethos in the day to day operations of public enterprises. In 1991 congress with its alliance introduced New Economic Policy in which they welcome the idea of privatization , which was discontinued by the BJP government under the leadership of then prime minister Shri Atal Bihari Vajpayee . In 2004, again the privatization came into existence with the emergence of congress party. The Strength Of Opposition In a democracy opposition plays as vital role as the government. a government to work in a proper way and according to the will of the people, equally strong and sensible opposition is requisition. an opposition like this leads to the success of democracy like in England which the oldest democracy of the word. Usually , there is one strong political party is opposition which is the strength of democracy in that country. Under the two-party system, the party which gets an absolute majority forms the Government. Under the multi-party system, the party which gets a relative majority forms the Government with the collaboration or support of some other political parties. Others which do not command majority form the Opposition. The strength of the Opposition very often depends on whether or not the Opposition parties are united or divided. They may be ideological differences between parties but the Opposition must act as a whole, and the parties must rise above their ideological differences and should judge every move of the ruling party critically. in India there are a number of opposition parties. The effective working of opposition in democracy is very important. The opposition fastens the growth of the county and slow down its growth by untimely agitations. For example, the violent agitations in Gujarat, Bihar, Assam and Punjab resulted in great loss of life and propensity and failed entirely to gain their objectives which affects the working of business entities. So if the Opposition is fair, firm and consistent, it can make constructive criticism of Government polices affecting business. As a result, the Government cannot afford to act irresponsibly with regard to the business sector in the economy. Recently also, the Governments policy of foreign direct investment (FDI) in retail is wrongly criticized due to political reasons by opposition. Such kind of destructive approach is against the national interest. So in a democracy, an effective Opposition is as crucial as Government to protect, promote and regulate business in the best interest of society. Role And Responsibility Of Bureaucracy In any country , Government works through the bureaucracy. In a democratic set up, different parties may be voted in or out of the Government as and when elections are held. Even if the same party rules, thee is no guarantee that the same person will hold charge of a Ministry. Ministers change from time to time, but Government administration must continue without any break. This is where the bureaucracy comes in. bureaucracy is the permanent machinery of the Government, it is meant to keep the flow in Government operations in relation to both business and non-business sectors. In a system where the Government controls and regulates the business extensively, the bureaucracy is very powerful in enforcing Government rules and regulations, systems and procedures, licenses and restrictions. So the Businessmen, should, tend to oblige the bureaucracy in a number of ways. Role of bureaucracy in a country like India which is a developing country are: Policy Formulation- Formulation of Policy is the crucial function of political leaders or members. But the executives also have to play a vital role in it. They advise the ministers in policy making . Political leaders or members being amateurs cannot understand the technical complexities of laws and policies and hence depend upon the expert advice of professional civil executives. Policy Implementation This is the most essential and fundamental function of civil servants. They formulate and execute laws and policies to attain the goals of welfare state that is social equity, economic development, growth and so on Delegated Legislation- This is a quasi legislative function performed by the civil executives. Due to unavailability of time, pressure of work and increased complexities of legislation the legislative makes laws in raw form and delegate its power to the civil executives to make the full fledge bill . so in this sense civil executive makes bills ,rules and regulations, but within the boundary of the parent law that is enacted by the legislature. Delegated legislation is also known as executive legislation or subordinate legislation. Administrative Adjudication- This is a quasi judicial function performed by the civil executives. The civil executives settle disputes between the citizens and the state. There are Administrative Tribunals with judges who solves this dispute among citizens and the state. Examples of some of the tribunals in India are : the Income Tax Appellate Tribunal, Industrial Tribunals, Rent Tribunals and Railway Rates Tribunals. These tribunal functions beyond the ordinary court system. In addition to the above, the civil executives also performs the following functions-Administrative planning, administration of public enterprises ,handling financial operations etc. When the Government introduced liberalization in 1991 i.e., relaxation of rules and regulations, streamlining of systems and procedures, control turns out to be redundant and meaningless. At that time the bureaucracy finds that it is going to loose its age old role and responsibility of enforcing controls, as the same has happened with economic reforms. Powerlessness is a terrible situation for the bureaucracy. So they opposed towards liberalization. The bureaucracy enjoys imposition and execution of controls and regulations and the subject of controls and regulations had profound implications for business. For example, professional management of quite a few of our public enterprises has become a perpetual tussle between bureaucrats and technocrats. Politico-legal institutions Business and economic policies are statutorily enforced through laws. Various socio-economic legislations are subject to business operation which constitutes the legal environment. In todays scenario there are so many laws that are prevailing which can affects the business operations and it is required by the modern businessmen to have a basic knowledge regarding law and he needs legal advice constantly. Today business is more a kind of a legal contract rather than a social contract. Business laws are numerous in number and various in form. The laws are enacted to protect the business interests of various groups in society. The laws are needed to protect consumers, workers, mangers, owners, shareholders and society at large. There are many business legislations such as MRTP,FERA, IDRA etc. The order is maintained in the industrial economy through the above said legislations . Industrial order and harmony is essential for survival and expansion of business. Laws are not only meant to protect the business but sometimes it also creates the business. for example in Tax laws , more the number of operations of business ,the more the complications of tax laws the more will be the business of tax consultants. Thus economic legislations and business environment are interdependent on each other. Last but not the least, the legal institutions also plays a crucial role as a part of the noneconomic environment of business. The organs of the Government effects functioning of the legislative, executive and judicial business environment directly and indirectly in all manners. The above said organs run through organizations and institutions. The judiciary functions through organizations and institutions. For example, in India the judiciary runs through the Supreme Court, the High Courts and the lower courts. Unless these courts function efficiently, adjudication of business matters, will be at stake. For example , unless the police department acts with vigilance, the economic offences in a country will increase. The successful operation of business depends upon cooperation and coordination between number of Government departments like DGTD, DGS D BPE, etc. Sometimes, business suffers because of inter-ministerial or inter-departmental conflict. To avoid this kind of conflict, very often coordinating cells are created. Efficient working of the cells will helps in running business prosperously without constraints, otherwise, red-tapism, procedural delay, excessive centralization, lack of dedication and absence of departmental coordination will frustrate business activity.

Attitude Persuasion

Introduction: The word attitude  is an expression of favor or disfavor toward a person, place, thing, or event. Prominent psychologist  Gordon Allport  (1935) once described attitude â€Å"the most distinctive and indispensable concept in contemporary  psychology†. The words  attitude  and  persuasion  are often found together, as in the phrase  persuasion and attitude change. Persuasion is an attempt to change people's attitudes. For example, advertisers try to persuade potential customers to buy a product. To do this, they try to create a positive attitude toward the product.Social psychologists have emphasized that an attitude is  preparation for behavior. Otherwise, nobody would care about attitudes. An advertiser would not try to make you feel more â€Å"positive† or â€Å"liking† toward a product unless this was assumed to affect your likelihood of buying the product. Attitude as an inward feeling expressed by outward behavior. People al ways project on the outside what they feel on the inside. But some people try to mask their attitude. You have developed attitudes about such issues, and these attitudes influence your beliefs as well as your behavior.Attitudes are an important topic of study within the field of  social psychology. What exactly is an attitude? How does it develop? Studies show that how psychologists define this concept, how attitudes influence our behavior and things we can do to change attitudes. Definitions i. A settled way of thinking or feeling typically reflected in a person's behavior. A position of the body proper to or implying an action or mental state: â€Å"the boy was standing in an attitude of despair†. ii.Attitude is â€Å"a relatively enduring organization of beliefs, feelings, and behavioral tendencies towards socially significant objects, groups, events or symbols† (Hogg & Vaughan 2005, p. 150) iii. â€Å"A psychological tendency that is expressed by evaluating a pa rticular entity with some degree of favor or disfavor† (Eagly & Chaiken, 1993, p. 1) Explanation An attitude is a cognition (form of thought) that is formed through experience and influences our behavior. The fact that attitudes are  formed through experience  means that we can, potentially, change them. When a ersuader gives a message to an audience member, that message becomes part of the listener’s experience, and it can affect his or her attitudes. The fact that attitudes  influence our behavior  means that we can use persuasion as a means to achieve our goals — when the behavior, or actions, or others can help attain those goals. Attitudes have two basic components: beliefs and values. Beliefs are, roughly, statements of facts. Beliefs are potentially verifiable. We say a belief is true or correct when it seems to reflect the world and false or incorrect when it seems contradicted by the world.Values are judgments of worth, like good or bad, useful o r useless, expensive or cheap, efficient or inefficient. Together, these cognitions (thoughts), beliefs and values, form attitudes. (M. Clubertson, 1968)Attitudes are learned from experience and also influence our behavior. A person’s attitude is a composite of all the relevant belief/value pairs, with the more important ones influencing the attitude more. You can change a person’s attitude by changing either the belief or the value (but not both), or by creating new belief/value pairs (or by changing the relative importance of belief/value pairs).Persuasion is, quite simply, the use of messages to influence an audience. The messages that make up persuasive discourse are  instrumental, or means to ends or goals of the persuader. Companies use persuasion in the form of advertising to convince consumers to buy their products or services. Students use persuasion to convince their parents to increase their allowance, or let them go to see a particular movie, or to let th em use the car. Parents can use persuasion to get their children to study or to clean up their rooms.People use persuasion to get their friends to go to see a certain movie, or a band, or to hang out at the mall. Persuasion can convince another person to go out on a date. It can convince a teacher to accept a paper after the due date. Of course, people can also use  threats  to get what they want, but that is not persuasion. In persuasion, we try to convince the audience that they should want to do what we want them to do–not that they should do it â€Å"or else. † One of the most powerful influences on attitude change is the motivation of people.Cognitive dissonance Cognitive dissonance  is a phenomenon in which a person experiences psychological distress due to conflicting thoughts or beliefs. In order to reduce this tension, people may change their attitudes to reflect their other beliefs or actual behaviors. What all the definitions of attitude have in common is  evaluation. An attitude is not just a neutral stance; it is a value judgment, favorable or unfavorable, or likely to affect persuasion: characteristics of the  communicator, the  communication, and the  situation.People can be inoculated against attempts at persuasion and propaganda by exposing them to weak attacks and teaching them how to respond. (D. Crano, 2005) Cognitive dissonance theory emerged in the 1950s and had a large impact on social psychology. It is based on the assumption that people seek consistency between their behavior and their attitudes. If forced to do something that contradicts their value judgments or opinions, people feel  dissonance  and are motivated to change either attitudes or behavior, to bring them into consonance (agreement) with one another.That makes the theory especially interesting and useful. A central question for Dissonance researcher has been the motivational bases for dissonance and the causes of the aversive state of disson ance arousal. In Aronson’s(1992) self concept analysis, dissonance arises from the inconsistent cognitions that threaten consistency, stability, predictability, competence and moral goodness of self concept. In Steele’s(1988) self affirmation Theory, dissonance arises from general self integrity.Stone and cooper(Peety and Wegener 1998) Proposed that dissonance arise when people fail to behave in a manner consistent with some valued self-standard. the specific motivation behind the dissonance supposedly depend on the type of self standard involved. Cognitive dissonance theory (Festinger, 1957) Festinger’s version of balance theory, called cognitive dissonance theory, suggests that when people have in mind two or more inconsistent thoughts or beliefs, they experience a state of  dissonance.This ‘negative drive state’ is unpleasant, so they are motivated to try to reduce it by altering one or more of the cognitions in order to re-establish a state of   consonance. Cognitive dissonance  is a term used in modern  psychology  to describe the feeling of discomfort when simultaneously holding two or more conflicting  cognitions: ideas, beliefs, values or emotional reactions. In a state of dissonance, people may sometimes feel â€Å"disequilibrium†: frustration, hunger, dread, guilt, anger, embarrassment, anxiety, etc. Cognitive dissonance is one of the most influential and extensively studied theories in social psychology.The theory of cognitive dissonance in  social psychology  proposes that people have a  motivational drive  to reduce dissonance by altering existing cognitions, adding new ones to create a consistent belief system, or alternatively by reducing the importance of any one of the dissonant elements. It is the distressing mental state that people feel when they â€Å"find themselves doing things that don’t fit with what they know, or having opinions that do not fit with other opinions the y hold. †Ã‚  A key assumption is that people want their expectations to meet reality, creating a sense of equilibrium.Likewise, another assumption is that a person will avoid situations or information sources that give rise to feelings of uneasiness, or dissonance. Bogardus Social Distance scale For Bogardus â€Å"an attitude is a tendency to act toward or against something in the environment which becomes thereby a positive or negative value. â€Å"Conducted a monumental study on â€Å"social distance â€Å"still used the world over to examine cultural and ethnic attitudes. The Bogardus Social Distance scale measures attitudes about how close or distant people feel towards other people.Early in twentieth century E. S bogardus invented bogardus social distance scale is a technique for scaling attitude to measure social-psychology distance between various ethnic and racial groups Social Distance Scale  (Bogardus, 1925) is where attitudes are inferred from the actions of t he participant. The participant indicates the degree of intimacy which would be acceptable towards an individual or group, e. g. , ‘Would you live next door to one? ’ Each question has a value assigned it, and the sum of these will indicate the strength of attitudeConclusion Hence we conclude that an attitude can be a positive or negative evaluation of people, objects, event, activities, ideas, or just about anything in your environment, but there is debate about precise definitions. Persuasion is a powerful force in daily life and has a major influence on society as a whole. For example Politics, legal decisions, mass media, news and advertising are all influenced by the power of persuasion, and influence us in turn. What all the definitions of attitude have in common is  evaluation.An attitude is not just a neutral stance; it is a value judgment, favorable or unfavorable, for or ikely to affect persuasion: characteristics of the  communicator, the  communication , and the  situation. People can be inoculated against attempts at persuasion and propaganda by exposing them to weak attacks and teaching them how to respond. REFERENCES Crano, W. (2005). Attitude and Persuasion. California: Claremont Graduate University. Clubertson, H. (1968). Attitudes. Journal of Cooperative Extension, 79. Murchinson,C. (1985). Handbook of Social Psychology. Clark University Press .

What Does Help in Essay Writing Mean?

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Poverty Is The Most Far Reaching Social Problem - 847 Words

Poverty is the most far reaching social problem that the population of the world faces today. Poverty does not discriminate against race or age. History has show that even social classes living above the poverty line are not safe from the treat of poverty(Meissnerd). A social problem is defined as a condition that undermines the well-being of some or all members of a society and is usually a matter of public controversy(Macionis).† Poverty is defined as the state of one who lacks a usual or socially acceptable amount of money or material possessions (Merriam-Webster). Poverty can cause the wellbeing of children and adults to suffer from lack of necessities and comforts. We will look in depth at the how poverty has been defined, perceived, socially constructed, and shaped by claims making on the national, state and local level. We will also consider how this condition has been approached by sociology, viewed politically, and dealt with through government policy (Robinson). Poverty in the United States In America, 15% of the population lives under the poverty line. The poverty line is a calculated amount that an individual or family should make to maintain housing, food and basic necessities; the poverty line is used by the government to track the poor (Macionis). About 20% of those under the poverty level, which is 5% of the total population, would be considered living in deep poverty with a large poverty gap. When families or individuals fit into the category of deepShow MoreRelatedSolving Poverty : A Widespread Disease930 Words   |  4 PagesRavi Parashar Ms. Thompson AP Lang 1B March 12, 2014 Final Draft Steps to Solving Poverty Poverty is a widespread disease, afflicting about 3 billion people around the world, that can be cured by taking effective measures. However, it seems incurable by the sheer amount of people affected by it and the convoluted, multifaceted reasons it is caused. 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