Coffee Industry Marketing Plan Development

Question: Discuss about the Coffee Industry Marketing Plan Development. Answer: Introduction Coffee is an extremely treasured product. It is presumed that more people consume this precious product every day as they depend on it for their livelihoods. As such, there exist many coffee outlets in the American, European, Australian markets, etc. to include a chain of coffee cafes and independent coffee cafes. A wide chain of coffee stores holds a significant share in the Australian coffee market with the key players being Starbucks, Gloria Jeans, and the McCafe. The coffee market has been very competitive through several components including the service, coffee quality, prices, the atmosphere of coffee cafes, etc. that have an enormous impact on the customer's buying behaviour. Additionally, the external environment also significantly affects the coffee market. However, no matter the coffee outlet, there remains to be room to penetrate the market. This paper seeks to examine the background of the leading competitors in Australia. We will further analyse the various factors and t he current state of the coffee franchise. Starbucks, Gloria Jeans, and McCafe Brands and their Marketplace Starbucks was founded more than four decades ago, and since then the firm has experienced remarkable growth and success[1]. Today, it is perceived as the go-to coffee shop where people go to work and socialize, a notion that matches well with the companys marketing strategy. Starbucks strives to create a conducive and relaxed atmosphere where its customers stop between work and home[2]. This technique has been proven to be a success for the company as it generates revenues of nearly $21 billion as of 2016[3]. Gloria Jeans Coffee is an Australian coffee specialty company that was founded in 1979[4]. The brand is largely synonymous with providing quality coffee and is also a leading franchise system. Gloria Jean's serves and sells a wide range of espresso coffee products, blended and whole bean coffee, and cold drinks. The company is committed to providing the world's highest standard and consistent specialty coffee products. Presently, the company has entered many foreign markets and continues to grow its presence. This has enabled the company to draw a large base of customers and increase their revenue base. On the other hand, McCafe is a coffee shop owned by McDonald's that was established in the 1990s in Australia[5]. The brand has been a strong challenger for coffee market competitors in the Australian market. The brand boasts of offering premium coffee and strives to maintain this reputation in major markets. This has helped them to acquire a strong global presence with a reputation f or providing customers with good value for their money. Positioning of the Products in the Market Market positioning is the way in which products are placed in a manner to occupy a clearer, distinctive, and desirable place that is relative to the rival companys products[6]. The positioning strategy is based on customers so as to provide excellent services outside the customers' expectations[7]. Starbucks position itself as the premium product in the coffee market by offering high quality, innovative products, and providing great services to their customers. Price and product standards determine the value of the product[8]. When Starbucks was established its products were expensive and was positioned in accordance to that as they seek to deliver high value promised to their customers. McCafe has positioned its coffee products to target customers who appreciate high standard coffee offered at low prices served by well-trained staff at, and seek an excellent product in an attractive atmosphere. Gloria Jeans caf also has a strong brand recognition and positioning. The company has pos itioned its products on offering high quality and excellent experience. The coffee market is a very competitive industry. As such, a companys competitive advantage is centered on its strength and opportunities they address, as shown in the SWOT analysis. Strengths - Identifying the company's key strengths is important to enable drive customers to a brand. A good quality and consistent coffee and a strong coffee culture help coffee brands to offer unique products that meet the customer's needs. This element should not only be limited to the coffee standards provided by the coffee chains but should also focus on the environment in which the coffee is consumed. The lifestyle of people has completely changed throughout the years as the economy experiences growth in the disposable income, and most people are willing to spend more on premium products and services. The coffee drinkers have become more demanding, educated, and discerning of their coffee shops and its staff. Coffee consumers are now discussing the taste and the mouth feel' of their coffee the same way they do in specialty products such as artisanal food.' Consumers are beginning to align themselves with healthier and leaner alternatives to make a preference of gourmet coffee over the traditional based coffee. Additionally, the cafe's staffs are not looked upon as just waiters but as skilled employees whose talent make a huge difference to the taste of the coffee. Weaknesses - The emergence of the internet brought about by advanced technology has made it possible for people and business to transact over the online platforms. The online platform is mainly used to display products information and to sell them. This feature has a significant impact on coffee shops as they need to put more weight on it. Opportunities - By providing an exquisite cup of coffee to consumers in an enjoyable and relaxed atmosphere, coffee franchises should start focusing on diversifying its product portfolio without negatively affecting their core business. An innovative culture is what is needed in the coffee market to produce unique products and services that satisfy consumer needs. When applied strategically, this factor has a significant and long-term positive impact on the coffee franchises as it helps to minimize costs, and increase profits. Threats - This element of the SWOT analysis is centred on the external dynamics that may diminish the business performance[9].Competition is considered as the major cause of concern for most organizations. Stiff competition has the magnitude of lowering a companys profits since competitors have devised ways to draw consumers with superior products at affordable pricing. From the above analysis, possible gaps are evident in the coffee market. There exists an emerging trend of coffee consumption where people are seeking healthier lifestyles and want to be provided with gourmet and organic food products. The healthy trend and hectic lifestyle of the people are likely to influence the coffee shops in future[10]. There also exists a lag in technology investment which tends to limit transactions. Two Alternative Marketing Strategies for the Products It is highly recommended for coffee brands to take into consideration the demand among consumers for healthier, quality coffee products as well as specialty beverages. Offering low-quality cappuccino and espresso even for a discounted price is less likely to appeal the contemporary and more sophisticated coffee enthusiast who would prefer to pay more for premium products. Coffee outlets need to take this on board and also introduce new recipes and a wide range of diversified types of coffee on its menu. Advanced technology has simplified transaction process for people and business because of its speed and convenience. Coffee franchises need to develop and actively run online platforms for them to reap high benefits. This platform will enable them to display and sell their products to customers via the internet and also facilitate one on one communication with customers. Organizations need to develop a solid marketing plan for their businesses. As such, coffee brands can start by identifying its target market. These market can be broken down into smaller groups such as age, profession, income, etc. Segmenting the market is essential to identify a consumer's distinct characteristics and to position a business or product to its target market reasonably[11]. Likewise, may need to develop a plan to boost its online presence. A substantial investment in technology is crucial to improving the ordering and payment processes. As such, they must be ready to heavily invest their time and resources developing internet technology to widen online presence. Conclusion The marketing strategies discussed above aims at making coffee brands products available to their customers. To achieve this, the companies should strive to promote the quality, affordability, and convenience in the take home compendium. Starbucks, Gloria Jeans, and McCafe each have designed and implemented their own strategies which seek to provide products that are high on quality and at affordable pricing, this offers a natural selection in reaching the suitable potential customers. References Euromonitor International. Cafes/Bars in Australia. Retrieved on 18 May, 2017 from https://www.euromonitor.com/cafes-bars-in-australia/report Gloria Jeans. About Us. Retrieved on 18 May, 2017 from https://www.gloriajeans.com/, 2017 Kotler, P., Armstrong, G. Principles of marketing. Upper Saddle River, N.J: Pearson, 2014 Kotler, P., Keller, K. L. Marketing management. Upper Saddle River, N.J: Prentice Hall, 2012 McCafe. About Us. Retrieved on 18 May, 2017 from https://www.mcdonalds.com/us/en-us/about-us.html, 2017 Starbucks Annual Report. Annual Report. Retrieved on 17 May 2017, https://s21.q4cdn.com/369030626/files/doc_financials/2016/Annual/FY16-Annual-Report-on-Form-10-K.pdf, 2016 Starbucks. Retrieved on 03 May 2017, from https://www.starbucks.com/, 2017

Intranet in health and human services organization

Table of Contents Secure and effective intranets Legal and Regulatory compliance Privacy and Patient Information Data Storage Business continuity/ Disaster recovery References We recognize that good health does not just come about. Rather, it is a habit of smart choices and sound clinical care. As per establishment, good care is vital and can only be possible in presence of proper compliance with the health care technology. A company’s technological plan is essential for analysis, growth and development. (Mosenkis, 2005) Intranet should assure broad-based participation of both patients and doctors. In should have value to everyone.Advertising We will write a custom report sample on Intranet in health and human services organization specifically for you for only $16.05 $11/page Learn More These require a user-friendly interface where navigation ought to be consistent with their use and the controlled. Any new technology should encourage and int erest everyone in the organization to using it. It must be one, which employees will use, trust, rely on, and revisit. This paper addresses the issue of intranet and internet in addressing data and information exchange in the health sector. The management of data in any organization is of critical importance. Intranet enables the quick access to information. Quick access of diagnosis and patients information in the health sector has become of hallmark importance. Intranet should be highly appreciated because it plays a vital role of allowing creation of management information system to support operational, planned and strategic decision-making. (HKUST Cyberspace Centre, 1997) Secure and effective intranets The security of information is a very important aspect of protecting corporate, employees’, and patient’s confidential information, integrity of controls associated with human resources systems and financial reporting applications. â€Å"A secure intranet infrastruc ture supports secure connectivity, Strong password, host-based security on all server and client computers, role verification and authentication for certain types of access and effective compliance enforcement mechanisms.† To archive automated life cycle the system need â€Å"user accounts, smart cards for strong authentication and an internal Public Key Infrastructure.† Others requirements include â€Å"automated and manual tracking, monitoring and response to active threats to the network and lastly though customized programs that inform network clients about security threats, risks, policies, and best practices is essential.† (Janczewski, 2000) Firewall is just one of several ways of protecting the network from other un-trusted network users. The actual mechanisms of accomplishing data protection vary in principle. It is a pair of mechanisms that exists to block traffic, or to permit traffic.Advertising Looking for report on it? Let's see if we can help y ou! Get your first paper with 15% OFF Learn More The ability or strength of blocking harmful and suspicious messages depends on the server system’s firewalls. Some have greater power while others place normal or less emphasis on blocking messages interchange. Access of information among health care facilities users ought to be occurring through proper safeguarded or fire walled public network. The controlling machine referred to as the server ensures should have the capability of screening messages in both bearings; messages being sent out and those being received so as to ensure and maintain security and integrity of patient’s and physicians information.. According to Mosenkis (2005), when part of an intranet is accessible to it becomes has higher chances of firewall attack. Legal and Regulatory compliance According to the Healthcare Insurance Portability and Accountability Act of 1996, the security standards implement controls over access to health informati on and provide audit trails for computerized record systems to meet the needs and capabilities of small and rural healthcare providers. There is good transmission of information, which physically, electronically and administratively safeguarded to ensure confidentiality. The Legal and regulatory compliance initiatives encompass Security, Privacy, Data protection, Accountability, Backup and record retention (Anton, n.d). Privacy and Patient Information Privacy is the rights and responsibilities of an individual or organization with respect to the collection, use, retention, and disclosure of personal data. The organization collects sensitive personal data that is private and policies ought to define and govern how to handle and protect information. Individuals ought to be empowered to control the collection, use, and distribution of their personal information. Data Storage According to Anton (n.d.), the least visible but most valuable asset in any organization is working knowledge. T ypical Storage and communication of information is achievable through production processes, standardized procedures for giving services, corporate guidelines and procedures for offering provision for other policies governing the handling of documents. The work supportive documents include â€Å"instructions, supplementary drawings, flowcharts, forms, and other supporting information†. (Anton, n.d.) Important information remains locked to specialized physicians instead of a work setting where it is available when others especially junior physicians need clarification or assistance. This becomes a problem especially in their absence.Advertising We will write a custom report sample on Intranet in health and human services organization specifically for you for only $16.05 $11/page Learn More This information can easily be lost but implementation of a mechanism should be available to confine and avail it to users whenever they need it in a safe and re liable intranet or through the Wide World Web. (Anton, n.d.) Protection of such information provides access from the administrative point of control to authorize access. Anton, (n.d.) indicates that the technology that uses internet closely avails knowledge to user’s mainly the employees in the health sector. The ability to access such information at various locations any time has become a reality today. Availing information at whatever time or location is an excellent way of empowering workers.† Data protection policies apply to everyone who has access the health information regardless of its location, the form it takes, the technology used to handle it, or the purpose it serves. The organization ought to identify and classify important or critical data. Business continuity/ Disaster recovery For continuity, there has to exist a backup process for line-of-business (LOB) applications just in case a disaster may occur. Formulating Record Retention program, which organize s and manages records and keeps information stored and available for the relevant retention periods is essential. Security is the key to continuity. User accounts provide access to, and security for, granting corporate resources enables access to the network. Computerization of other areas allows for extra security, and resources’ owners need to grant permission for users to access these areas. System accounts are accounts used to perform services, such as for SQL  Server, information exchange, backups, or scheduled scripts in a similar way as user accounts. Distribution and security groups for either sending mail or for granting access to resources increases chances for advances. (Janczewski, 2000) References Anton, K., (n.d.) Effective Intranet: Intranet journal from Comprose Inc Web. Janczewski, L. (2000). Internet and Intranet Security Management: Risks and Solutions. Idea Group Inc (IGI). Pp 38Advertising Looking for report on it? Let's see if we can help you! Get your first paper with 15% OFF Learn More Mosenkis, R. (2005 December 14). Intranet Implementation. Retrieved from: https://ezinearticles.com/?Intranet-Implementation:-The-Advantages-of-a-Web-based-Solutionid=113114 This report on Intranet in health and human services organization was written and submitted by user Catherine Riggs to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Gun Control Gre Sample Essay

Gun Control Gre Sample EssayIn the wake of the terrorist attacks of September 11, there has been a renewed call for gun control in America. An American Association of Law Enforcement is now calling for an increase in the number of armed officers to protect the public, while police chiefs have complained about the shootings and killings on the streets.On the other hand, some American gun owners are arguing that gun control laws should be made more lax to allow law-abiding citizens to protect themselves against criminals. This is a valid point. The people who have access to guns are better able to protect themselves than those who do not have firearms.As far as the overall safety of the people of America, there is much debate about whether the U.S. has too many guns or too few. The current restrictions are not enough to adequately deal with the problem. When it comes to firearm safety, however, I think it is safe to say that the argument is not so much about the number of guns as it is about the quality of the firearms.When I first began hearing the term 'gun control,' I was certainly very supportive of a common sense approach to keeping guns out of the hands of the mentally unstable. As time went on, however, I became more skeptical. The gun control advocates argued that if you outlaw the possession of guns, people will simply go underground, or to other countries, where these guns are available and easily procured.The fact is that gun control does not ban guns but makes it harder for them to be purchased. For example, a person would have to go through a rigorous licensing process, such as obtaining a Firearms Identification Card (FID), before being allowed to purchase a handgun. For those who might not know what an FID is, it is simply a card issued by the government that certifies the owner's possession of a firearm.And if the gun control advocate is correct, then a good and well thought out universal background check system could also go a long way toward pre venting the mentally unstable from buying guns. The problem with this, of course, is that such a system would probably require such a comprehensive database of personal information that criminals could use it to their advantage. That is why I was quite skeptical when I first heard the term 'gun control.' However, after studying the issue, I now believe that it is better to have a universal database of all gun owners than to have no system at all.If we truly wish to keep guns out of the hands of people who shouldn't have them, then it would behoove us to focus our efforts on making the guns more dangerous rather than focusing on trying to ban the guns. The Second Amendment states clearly that the right to bear arms shall not be infringed.

Protesting the Old Way essays

Protesting the Old Way essays We are living in a world where the old rules no longer apply. Such was the case during the early modern period in Europe. Prior to this sudden change in the rules Europe went through an extensive period of illiteracy and lack of enlightenment. The centuries following the downfall of the Roman Empire would be the years defined as the middle ages. During this phase, the Catholic Church dominated the beliefs of the people and its power was very rarely threatened by outside forces. The Pope, or head of the Catholic Church, spent a majority of his time collecting church taxes, or tithes, selling indulgences, and acting as Gods representative on Earth. For a long time no one questioned his authority, or the Churchs legitimacy. Ultimately, the belief system of humanism would lead to the collapse of the Churchs influence, and the reformation itself. What transpired was not a direct war between humanism and the Church, in fact some humanistic qualities agreed with Church doctrine, but some of these beliefs would in due course lead to the reformation. Humanism was a very extensive philosophy that began to spread during the early renaissance period. Its main ideas were the devotion to ancient and classical cultures, generally the Romans, and the appreciation for the beauty of man, art, nature, logic and reasoning. Pico Della Mirandola says that, At last it seems to me I have come to understand why man is the most fortunate of creatures and consequently worthy of all admiration and what precisely is that rank which is his lot in the universal chain of Beinga rank to be envied not only by brutes but even by the stars and by minds beyond this world. Humanists were confident that mankind had the ability to discover for itself what was true and what was false in the world. It also, in opposition to all theories of universal determinism, fatalism, or predestination, believed ...

Reasons to Keep the Electoral College

Reasons to Keep the Electoral College Under the Electoral College system, it is possible for a presidential candidate to lose the nationwide popular vote, yet be elected president of the United States by winning in only a handful of key states. Should you ever forget this fact, critics of the Electoral College will be sure to remind you of it every four years. What could the Founding Fathers- the framers of the Constitution- have been thinking in 1787? Did they not realize that the Electoral College system effectively took the power to select the American president out of the hands of the American people? Yes, they did. In fact, the Founders always intended that the states- not the people- select the president. Article 2 of the U.S. Constitution grants the power to elect the president and vice president to the states through the Electoral College system. Under the Constitution, the highest-ranking U.S. officials elected by the direct popular vote of the people are the governors of the states. Beware the Tyranny of the Majority To be brutally honest, the Founding Fathers gave the American public of their day little credit for political awareness when it came to selecting the president. Here are some of their telling statements from the Constitutional Convention of 1787. A popular election in this case is radically vicious. The ignorance of the people would put it in the power of some one set of men dispersed through the Union, and acting in concert, to delude them into any appointment. - Delegate Gerry, July 25, 1787The extent of the country renders it impossible, that the people can have the requisite capacity to judge of the respective pretensions of the candidates. - Delegate Mason, July 17, 1787The people are uninformed, and would be misled by a few designing men. - Delegate Gerry, July 19, 1787 The Founding Fathers had seen the dangers of placing ultimate power into a single set of human hands. Accordingly, they feared that placing the unlimited power to elect the president into the politically naive hands of the people could lead to a tyranny of the majority. In response, they created the Electoral College system as a process to insulate the selection of the president from the whims of the public. Giving the Small States an Equal Voice The Electoral College helps give rural states with lower populations an equal voice. If the popular vote alone decided elections, the presidential candidates would rarely visit those states or consider the needs of rural residents in their policy platforms. Due to the Electoral College process, candidates must get votes from multiple states- large and small- thus helping to ensure that the president will address the needs of the entire country. Preserving Federalism The Founding Fathers also felt the Electoral College system would enforce the concept of federalism- the division and sharing of powers between the state and national governments.Under the Constitution, the people are empowered to choose, through a direct popular election, the men and women who represent them in their state legislatures and in the United States Congress. The states, through the Electoral College, are empowered to choose the president and vice president. Are We a Democracy or Not? Critics of the Electoral College system argue that by taking the selection of the president out of the hands of the public at large, that Electoral College system flies in the face of democracy. America is, after all, a democracy, is it not? Lets see. Two of the most widely recognized forms of democracy are: Pure or Direct Democracy - All decisions are made directly by a majority vote of all eligible citizens. By their vote alone, citizens can enact laws and select or remove their leaders. The power of the people to control their government is unlimited.Representative Democracy - The citizens rule through representatives who they elect periodically in order to keep them accountable. The power of the people to control their government is thus limited by the actions of their elected representatives. The United States is a representative democracy operated under a republican form of government, as provided for in Article IV, Section 4 of the Constitution, which states, The United States shall guarantee to every State in the Union a Republican form of Government... (This should not be confused with the Republican political party which is merely named after the form of government.) In 1787, the Founding Fathers, based on their direct knowledge of history showing that unlimited power tends to become a tyrannical power, created the United States as a republic- not a pure democracy. Direct democracy only works when all or at least most of the people participate in the process. The Founding Fathers knew that as the nation grew and the time required for debating and voting on every issue increased, the public’s desire to take part in the process would quickly decrease. As a result, the decisions and actions taken would not truly reflect the will of the majority, but small groups of people representing their own interests. The Founders were unanimous in their desire that no single entity, be it the people or an agent of the government, be given unlimited power. Achieving a separation of powers ultimately became their highest priority. As a part of their plan to separate powers and authority, the Founders created the Electoral College as the method by which the people could choose their highest government leader- the president- while avoiding at least some of the dangers of a direct election. But just because the Electoral College has worked just as the Founding Fathers intended for over 200 years does not mean that it should never be modified or even abandoned completely. What will it take for either to happen? What Would It Take to Change the Electoral College System? Any change to the way in which America chooses its president will require a constitutional amendment. For this to come about, the following will have to happen:First, the fear must become reality. That is, a presidential candidate must lose the nationwide popular vote, but be elected through the Electoral College vote. This has happened exactly four times in the nations history: In 1876, Republican Rutherford B. Hayes, with 4,036,298 popular votes won 185 electoral votes. His main opponent, Democrat Samuel J. Tilden, won the popular vote with 4,300,590 votes but won only 184 electoral votes. Hayes was elected president.In 1888, Republican Benjamin Harrison, with 5,439,853 popular votes won 233 electoral votes. His main opponent, Democrat Grover Cleveland, won the popular vote with 5,540,309 votes but won only 168 electoral votes. Harrison was elected president.In 2000, Republican George W. Bush lost the popular vote to Democrat Al Gore by a margin of 50,996,582 to 50,456,062. But after the U.S. Supreme Court halted vote recounts in Florida, George W. Bush was awarded the states 25 electoral votes and won the presidency through a 271 to 266 vote margin in the Electoral College.In 2016, Republican Donald Trump lost the popular vote with 62,984,825. Democratic candidate Hillary Clinton received a total of 65,853,516 popular votes. In the Electoral College, Trum p was granted 306 votes to Clintons 232. It is sometimes reported that Richard M. Nixon received more popular votes in the 1960 election than winner John F. Kennedy, but official results showed Kennedy with 34,227,096 popular votes to Nixons 34,107,646. Kennedy won 303 Electoral College votes to Nixons 219 votes. Next, a candidate that loses the popular vote but wins the electoral vote must turn out to be a particularly unsuccessful and unpopular president. Otherwise, the impetus to blame the nations woes on the Electoral College system will never materialize.Finally, the constitutional amendment must get a two-thirds vote from both houses of Congress and be ratified by three-fourths of the states. Even if all of the above were to happen, it remains highly unlikely that the Electoral College system would be changed or repealed. Under the above circumstances, it is probable that neither the Republicans nor the Democrats would hold a strong majority of seats in Congress. Requiring a two-thirds vote from both houses, a constitutional amendment must have strong bi-partisan support- support it will not get from a split Congress. (The president cannot veto a constitutional amendment.) To be ratified and become effective, a constitutional amendment must also be approved by the legislatures of 39 out of the 50 states. By design, the Electoral College system grants the states the power to elect the president of the United States. How likely is it that 39 states are going to vote to give up that power? Moreover, 12 states control 53 percent of the votes in the Electoral College, leaving only 38 states that might even consider ratification. Come on critics, can you really say that in 213 years of operation, the Electoral College system has produced bad results? Only twice have the electors stumbled and been unable to choose a president, thus throwing the decision into the House of Representatives. Who did the House decide on in those two cases? Thomas Jefferson and John Quincy Adams.

Does climate change pose any unique ethical questions that one does Essay

Does climate change pose any unique ethical questions that one does not find in other cases of environmental justice, for example when a factory pollutes a nearby neighbourhood - Essay Example If it requires more, it may purchase credits from companies who need less, providing it doesn’t exceed the ‘strict and enforceable emissions cap.’1 Morgenstern demonstrates how this cap has been successful in reducing CFCs and SO2. If a factory unintentionally pollutes a neighbourhood, the factory would legally be responsible for making repairs and paying compensation. A well-known example (made famous by the Erin Brockovich film2) is the Pacific Gas and Electric Company, which contaminated the water in Hinkley in 1993. In a BBC interview Dr Mayer Hillman from the Policy Studies Institute author of the book How We Can Save the Planet, and Dr James Woudhuysen from De Montford University, debate the possibility of Personal Carbon Rationing, whereby UK citizens are given annual carbon allowances, and each time they use electric, fly, or fill a car with petrol this is deducted from their allowance. In a similar manner to factory permits, if people require additional allowance, they need to purchase a top-up. Hillman’s idea for Personal Carbon Rating is not new, but Morgenstern suggests it,‘failed to gain more than rhetorical support in the last Administration.’3 Hillman is keen to stress that it’s fair, with people, ‘having equal shares.’4 The female presenter raises the unique ethical question when she asks: ‘do we each have a personal responsibility?’5 Dr Woodhuysen, thinks that we are not individually responsible, and points out that some people w ill ‘feel guilty,’ others may ‘feel good’ and suggests this promotes a culture of ‘finger waging and moralizing about everyday behaviour,’6 which he thinks is ethically unfair. Peter Singer in an interview with The Guardian is asked what is your biggest guilty green secret?’ and he responds that because of his work and family he flies a lot and states: ‘I know I can offset the flying in various ways,

Analysis of The Neo Classical Theory of Economics Research Paper

Analysis of The Neo Classical Theory of Economics - Research Paper Example The Neoclassical theory of economics introduced the concept of maximizing profits or utility as the base cause for the rational decisions made by man. The economic man acts rationally so as to maximize the gains out of the action. In the case of individuals, the utility of the product decides on the price and the market value of the product. In the case of the companies, it is the profitability of the company that would be the deciding factor. Another leading concept behind the neo-classical theory is that it also accepted the fact that the individuals will act independently and their perception of what is profitable to them might vary. William Stanley Jevons (1871) in his seminal work, The Theory of Political Economy says, 'Given, a certain population, with certain needs and powers of production, in possession of certain lands and other sources of material: required, the mode of employing their labour which will maximize the utility of their produce.' The neo-classical was influenced by the thoughts of a number of economists of the twentieth century and the behavioral economics was adopted by the majority in lieu of the neo-classical. A modified version of this is termed the new classical economic theory and most of the current day work on economics is based on these principles. The new classical theory takes into consideration various factors that make up the economic decision making of the individuals (Emma Dawnay & Hetan Shah Jul 2005). It takes into account the behavior and choice of people based on various reasons not necessarily controlled by the sense of maximizing their utility or their value or their returns. Statement and its implications The statement brings to the forefront of the seven basic principles that differentiate the new classic economic theory from the neoclassical one. However, this theory accepts the fact that economics is one of choice and preference. The logic of preference or economic decisions is controlled by the market prices, the return to the person or the company is going to get out of it and finally the allocation of resources. Apart from these, the decisions are made based on a number of factors that are more behavior oriented rather than economics directed. Information flow in the market place affects the market price and creates a trend in the market. Information in today's world also has an impact on the economic behavior of nations. Behavior and psychology of a person have an effect on the decisions that are made by him.