Strong Leadership in Business Organizations

Introduction A plethora of studies has pointed out that strong leadership is extremely important for business organizations. Business leadership is a term commonly used to refer to the activity of leading a group of individuals, usually considered as an organization. In its essence, business leadership involves a number of things (Peters Robert 1982, p. 55). First of all, it involves the establishment of a precisely clear vision.Advertising We will write a custom essay sample on Strong Leadership in Business Organizations specifically for you for only $16.05 $11/page Learn More Once this vision has been established, it is then shared with other people in an effort to make them follow it. Information, knowledge, in addition to methods, necessary to realize the established vision is then provided. The other thing involved is balancing and coordinating the interests of all stakeholders perceived to be conflicting. In case of a crisis, a leader takes the fo refront due to his ability not only to think but act as well in a creative manner during difficult moments (Peters Robert 1982 p. 58). Leadership differs from management since it flows from the core of personality. Unlike management, leadership can not be taught. However, leadership can be learned. In addition, through mentoring as well as coaching, it can be enhanced. It is indicated in the findings of the research conducted by Cangemie et al (2004, p. 30) that strong and effective leadership demands a captain of a ship and not just an individual who is standing by the helm. Cockerell (2009, p. 61) further asserts that leadership is not passive but active. Thesis Statement The forthcoming discussion is intended to provide clear and precise evidence why strong leadership in business organizations is one of the most significant elements. In order to adequately and authentically derive the proof, research will be based on relevant literature and studies conducted on the same. Discuss ion Human nature is built on several contradictions. Basically, each and every person is self centered and tends to think about themselves as winners. However, the truth is that human talents are distributed in a normal manner (Robbins 2007, p. 55). This implies that there is no human being superior as everyone tends to think he is. Another contradiction is that, like processors of information, individuals are not only simultaneously flawed but delightful as well. On the one hand, human beings can hold little explicitly in their minds.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This means that an enormous pressure of maintaining things remarkably simple in their organizations on managers exist. On the other hand, the unconscious mind of humans is extremely powerful (Cockerell 2009, p. 65). Another contradiction is that all human beings exist within their environments. They have a high degree of sensitivity in addition to being responsive to external rewards as well as punishments. Indeed, drive comes from within a human being. A further conflict is that human beings act in a way as if expressed beliefs are essential; yet, it is considered that actions speak louder. It turns out that there is no person that can fool others at any time. Usually, people are proficient in watching out for patterns in their day-to-day actions (Peters Robert 1982, p. 60). Indeed, human beings are wise as they distrust words that are seemingly mismatching our deeds. People in an organization do not differ much, and therefore these conflicts are present in them (Robbins 2007, p. 59). In order to deal with these conflicts, it is necessary to have a strong leadership in the organization. With a strong leadership in place, a passionate pride is taken in an effort towards setting high targets for the organization of people. A strong leadership necessary to deal with these conflicts is the o ne that establishes productivity teams and productivity development teams among others. Even though the approaches adopted by strong leadership are self- defeating, they are perfectly rational. Usually, the striking attributes of this symbiotic effect are excitement as well as believability, which are two characteristics of herculean importance if at all an organization wants to realize its goals in an effective manner (Solich 2007, p. 55). Taking believability into account, top performing business organizations are in most cases led by an individual who grew up with the core of the business. Managers represent their unique ability to engender excitement (Powell 2011, p. 8).Advertising We will write a custom essay sample on Strong Leadership in Business Organizations specifically for you for only $16.05 $11/page Learn More Most businesses where strong leadership has been adopted are attributable with producing a lot of winners. In addition, strong leade rship usually constructs these systems in such a way that they celebrate the winning when it occurs. Further, these systems unlike the ones without strong leadership utilize non monetary incentives in an extraordinary manner (Pedler 2010, p. 44). Among the key attributes of businesses with strong leadership is that they are always aware of the essentiality of maintaining things as simple as possible regardless of the overwhelming genuine pressures to complicate the turn of events. In any organization, staff may simplify matters. However, the people in the field are irritated by the staff as they are known to make life miserable for them. Once the staff of any organization regardless of the number leaps into an action, information requests, regulations, policies, in addition to instructions on how the staff is performing are being generated. As this becomes the trend, overload of information sets into the system. It is impossible for short-term memory to bear or process all these inf ormation. Therefore, everything in the organization, including its running becomes confused. However, in a business where strong leadership has been adopted, when this ensues, there is always a way to cope with this sort of problem (Robbins 2007, p. 67). One of the strategies that a strong leader does is intentionally keep the corporate staff number as small as possible. This implies that the number of corporate staff in the business will not generate excessive confusion down the line. In addition, unlike other businesses, a business characterized with strong leadership usually has a tendency of putting a focus on just a few key business values as well as just a few business objectives (Peters Robert 1982, p. 67). Focusing on a few key business values is indispensable as it lets everyone realize what is weighty and what is not. As a result, there is simply less necessity for daily unending instructions, that is, daily short-term memory overload.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In many businesses where strong leadership has been adopted, paperwork is minimal (Rizzatti 2005, p. 10). Indeed, in these organizations, paper work is eliminated by using quick hit task forces. In addition, these organizations sub optimize; they tend to overlook economies of scale put up with a fair and a considerable amount of internal overlap, mistakes, as well as duplication in an effort towards seeing that they will not have to coordinate each and every activity, which, given their size, these businesses could not do in anyway (Cockerell 2009, p. 69). It is often argued that the most excellent and successful companies are way they stand since they are organized in such a manner which is necessary to obtain extraordinary efforts from ordinary individuals. Leadership represents a variety of things. Leadership is patience. According to Cangemie et al (2003, p. 33), it is usually a singularly frustrating coalition building. He further asserts that it is the purposeful seeding of ca bals that an individual perceives or hopes will eventually result in the appropriate ferment in the bowels of a business organization. Further, leadership involves a meticulous shift of institution’s attention through the use of mundane language of systems of management. In addition, leadership entails alteration of agendas in an effort towards seeing that the new policies get more attention. Furthermore, leadership requires one to be visible whenever things go awry (Rizzatti 2005, p. 19). Further, it requires an individual to be invisible whenever things are working well. According to the findings of a research conducted by Savage (2012, p.36), leadership involves the process of establishing a loyal team at the top, which is responsible for speaking more or less in unison. According to Rowbotham (2007, p. 76), leadership requires a person to listen in a careful manner in most of the times while frequently imparting encouragement messages through the power of speaking, and re inforcing words with actions that are not only realistic but believable as well. At times, leadership necessitates a person to be tough whenever necessary. This implies that the person to whom the people in the organization look upon must be more than a leader. He must be a strong leader exhibiting strong leadership skills (Sherman n.d). A strong leader acts as the mentor, the value shaper, an example, and the one who moulds meanings. Having a strong leader at the helm is indispensable since the strong leadership job is tougher than that of just a leader. He is usually the true artist, as well as the pathfinder. In an organization, it is essential that the urge for transcendence that unites every employee in the organization is called forth and exemplified. Only a strong leader can see these through (Sherman n.d). A strong leader and his strong leadership are considered to be miles ahead of just leaders as he is able to exhibit consistency spread over long periods of time in support of his transcending values (Rowbotham 2007, p. 80). A strong leadership holds that there is no opportunity deemed small and that there is no particular forum too insignificant. Further, a strong leader holds that there is no audience that can be regarded as too junior unlike other forms of leadership. Strong leaders and leadership are always able to make their followers transcend the day-to-day affairs. Leadership that is not strong in its nature is usually preoccupied with power unlike the cases with strong leadership. Attention to power blinds leaders and results into their inability to install correct purposes. Strong leadership is necessary since it promotes a situation where employees in a business organization interact with one another in a manner that the leaders as well as the employees raise one another together and, therefore, reach higher levels and extents of morality in addition to motivation (Sherman n.d). Strong leadership is considered to be moral due to its tendenc y to raise the level of the employee conduct as well as raising the aspiration of not only the leader but the employee as well. This means that a strong leadership, unlike just leadership, has a transforming effect on both the leader and the employee. An organization attributable to having a strong leadership is dynamic. To elaborate on this, such a leadership involves a leader throwing himself into a relationship with his employees. Subsequently, the employees will feel elevated, and as a result, they become more active. This activity on its part helps in the creation of new cadres of leaders among these employees. Strong leaders, unlike managers, have the ability to understand other people’s emotions (Peters Robert 1982, p. 77). It is commonly stated that managers prefer working with people. By contrast, strong leaders prefer stirring emotions. Whenever employees of an organization are exposed to a strong charismatic leadership style, they are not only strengthened but upl ifted by the experience, as well. Such employees feel more powerful unlike other forms of leadership where they feel less powerful and submissive. A system where strong leadership has been adopted does not force the employees to submit and follow the leader by sheer overwhelming magic pertaining to his personality, in addition to his persuasive powers. Instead, he tends to be influential by way of not only strengthening but inspiriting his employees (Rowbotham 2007, p. 80). Therefore, a strong leadership business environment arouses confidence in the employees. As a result, the employees feel better and are able to accomplish the organizational goals (Powell 2011, p. 1). Strong leadership in a business crops up a symbiotic effect on the part of the leader and the followers. Usually, the striking attributes of this symbiotic effect are excitement, as well as believability, which are two characteristics of herculean importance if at all an organization want to realize its goals in an effective manner (Solich 2007, p. 55). Taking believability into account, top performing business organizations are in most cases led by an individual who grew up with the core of the business. A compelling example is HP. Concerning the second attribute, a strong leader’s explicit criterion of choosing managers represents his unique ability to engender excitement (Powell 2011, p. 8). Strong leadership is a must for any business since the in building of purpose is a challenge to creativity and a leader must have to possess more than just leadership skills. If a strong leadership is not in place, there is a herculean possibility that the business will not achieve its targeted goals (Solich 2007, p. 57). Perhaps, it may end up deviating from the intended course of action, a clear indication that it is heading to a fall. In building of purpose involves the act of transforming men, as well as groups, from being neutral and technical units into participants with a particular stamp, in addition to sensitivity and commitment. This implies that this process is indeed educational. According to Hansen (2010, p. 104), a strong and effective leader ought to be aware of the meaning, in addition to mastering the technique of the educator. Mullins (2010, p. 44) asserts that the art of a strong and creative leader is the art or building an organization. Further, it is the art of reworking of humans, as well as technological materials in an effort towards fashioning an organism, which is supposed to embody new, as well as enduring values. Zaleznik (2007, p. 67) made a worthwhile note when he indicated that the act of institutionalizing involves infusing values beyond a task’s technical requirements, which is at hand. Only a strong leader can do this. Without the aspect of strong leadership, this motive cannot be realized, and this spells out the essentiality of a strong leadership. The awarding of the social machinery in a way beyond its technical role, according to Cangemie et al (2004, p. 46), doubly reflects the unique way in which it fulfills both group and personal needs. It does not matter whether people become attached to a business organization. All that matters is prizing or awarding. Taking the standpoint of a committed employee into consideration, there is prodigious likelihood that the business organization will be transformed from being an expandable tool into a source of personal satisfaction, which is largely valuable. This can not come if a strong leader is not at the helm. This is an implication that a business leader serves as the primary expert in an effort towards promoting and protecting the values (Mullins 2010, p. 46). Conclusion From this analysis, it is clear that a strong leadership in a business is a vigorous and positive thing (Blazek 2011, p. 41). A business organization with strong leadership results in a better relative performance, unlike an organization where strong leadership is not advocated (Pedler 2010, p . 32). In addition to this, it leads to a situation where the level of contribution from the ‘average man’ is induced. This analysis also established that for both the business organization and society in which the business is build around, a business with strong leadership creates an environment in which people can blossom (Zaleznik 2007, p. 70). In addition, it creates an environment where people can develop self-esteem. The essence of this is that people will be excited and motivated to participate in the business organization as well as in the society as a whole. Unlike strong leadership, a business organization where strong leadership has not been adopted ends up in creating groups of non excellent performers (Peters and Robert 1982, p. 80). Further, the employees are almost perverse and always at odd taking every variable into account. In these organizations, it is a norm to lose rather than win. Further, the reinforcement is usually negative unlike strong leaders hip organizations where reinforcement is positive (Blazek 2011, p. 47). Guidance in these organizations tends to be arranged by the rule book instead of tapestries or even myths (Mullins 2010, p. 49). In addition, a business organization without strong leadership as its strongholds adopts a method where constraint and control are dominant. By contrast, in a business organization where strong leadership has been adopted, there is soaring of meaning and there is always a chance to sally forward (Hansen 2010, p. 110). Another shortcoming of an organization where strong leadership is not evident is that there is always politics – a thing that hampers development in addition to sustainability. In an organization with strong leadership, leading is usually guided by moral and this plays a key role in the achievement of an excellent company’s status (Peters Robert 1982, p. 85). Overall, strong leadership is a key to the effective running of any organization, and as such, any organization must ensure that it embarks on strategies that will put in place a strong leadership. References Blazek, C 2011, Ineffective leadership is costly, Cengage Learning, Belmont Cangemie, P, Hewwet, L, McQuade T Jairus, F 2004, ‘The journal of successful management development: Successful leadership practices in turbulent times’, Bradford, Vol. 33 no. 1, pp. 30 Cockerell, L 2009, Creating Magic: 10 common sense leadership strategies from a life at Disney, Doubleday, New York. Hansen, M 2010, ‘The Best-Performing CEOs in the world,’ Harvard Business Review, Vol. 4 no. 7, pp. 104-113. Mullins, J 2010, Management and organizational behavior, Prentice Hall, Essex. Pedler, M.A 2010, Manager’s Guide to Leadership: An Action Learning Approach, McGrow Hill, Berkshire. Peters, T Waterman, R 1982, ‘Ch3 ‘Man waiting for motivation,’ The wall Street Journal, Vol. 5 no. 2, pp. 55-86. Powell, G 2011, ‘The Gender and Leadership Wa rs,’ Organizational Dynamics, Vol. 40 no. 5, pp. 1-9. Rizzatti, I 2005, ‘Electronic Business,’ Highlands Ranch, Vol. 31 no. 10, pp. 10-25. Robbins, S Timothy, J 2007, Organizational Behavior, Prentice Hall, London, UK. Rowbotham, F 2007, Operations Management in Context, Butterworth-Heinemann, Oxford. Savage, N 2012, ‘Director: What makes a good leader,’ London, Vol. 65 no.5, pp. 36 Sherman, T n.d. The differences between effective and ineffective leadership skills, www.helium.com/items/1086365-good-bad-leadership Solich, H 2007, Tips for effective leadership, Thomson Learning, South Melbourne, Victoria. Zaleznik, A 2007, ’Managers and leaders: Are they different?,’ Harvard Business Review, Vol. 7 no. 3, pp. 67-78. This essay on Strong Leadership in Business Organizations was written and submitted by user Johnathan Knight 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.

Genocide in Cambodia essays

Genocide in Cambodia essays Few events have ever conjured as much terror and hatred as the genocidal killings in Cambodia by the Khmer Rouge; more than 2 million people were shot, strangled, beheaded, starved or tortured to death in the 20th century. The United States, when monitoring human rights violations such as genocide, should play essential roles in abolishing these law-breaking habits, establish a clear understanding of repercussions, and provide social and finical aid for the rebuilding of a distressed nation. Yet, throughout history the nature of imperialism has created great dynasties and destroyed many of them, from the Romans to the Nazis to the Khmer Rouge; one way to dominate the world is by destroying cultures or civilization to have more control, this is known as genocide. Genocide is the systematic killing of all the people from a national, ethnic, or religious group, or an attempt to do this for power. Thus this is one of the reasons for the horrific killings by the Khmer Rouge, which will be discussed more in depth throughout this paper along with gruesome details of their actions, life before and after the regime, connections between this human rights violation and others that took and take place in Cambodia, my view point along with others and the repercussions the Khmer Rouge endured by the United States and the United Nations in the aftermath of this event. The population of Cambodia is 11,339,562 (1998 estimate). Population growth per year is estimated at 2.5 percent, one of the highest rates in Asia. The rate of infant mortality is also high. The population density is 63 persons per sq km (162 per sq mi), with the densest concentrations on the heavily cultivated central plain. The mountainous regions of the country, where malaria is widespread, are thinly populated, as are the poorly watered northern provinces. During the late 1970s, under the brutal rule of the Khmer Rouge, all of Cambodias towns were depopulated, and reside...

Primate Observation Research Paper Example | Topics and Well Written Essays - 2000 words

Primate Observation - Research Paper Example The unjust treatments subjected to the non-human primate species denies present and future humanity the chance to study and understand the closest relatives of the human species. Evidently, the study of the non-human primates such as gorillas, apes and chimpanzees offer insightful learning opportunities pertaining to their physical and social characteristics as well as relationship with human behaviour. To this end, the subsequent sections will delve into the primate description of two major non-human species. These are the gorillas and chimpanzees. The description will examine their social and mating structures, food acquisition strategies and intelligent levels. Furthermore, the literature herein will offer comparative analysis between the gorillas and chimpanzees as well examine their regional distribution. The final section will delve into the relationship between the two non-primates and the understanding of human behaviour. Primate Descriptions a) Gorillas The gorilla primates are evidently the largest cohort of the primate family. They also exhibit the closest relation with humans as 98% of their DNA is in conformity to man’s DNA (Jurmain, 157). Gorillas are mostly land dwelling animals since they do not climb trees. The gorillas are classified into two different species with four sub-species that are determined based on their physical characteristics and their geographic location. The first species is Gorilla gorilla with sub-species of G. g. gorilla, from western lowland and G. g. diehli from cross river (Taylor, 100). The second species is Gorilla beringei with sub-species of G. b. Graueri also known as eastern lowland and G. b. beringei also known as mountain gorilla (Taylor, 100). To this end, the subspecies vary in their habitats with distinct physical characteristics and different numbers of populations. In this regard, the Western gorilla and Eastern gorilla species are classified based on their geographic location within their African hab itat. The Eastern Gorilla has two subspecies known as the Eastern lowland gorilla and Mountain gorilla. The Eastern lowland gorilla is located in the Democratic Republic of Congo (Jurmain, 159). Their population is classified as endangered with less than 3000. Their physical characteristics place them as the largest among the gorilla species. They also have shorter hair and teeth compared to the mountain gorillas as well as possessing the longest arms. On the other hand, the mountain gorilla is classified as critically endangered as their population currently stands at less than 720. Their physical characteristics are consistent with angular nostrils, a wide face and a large skull. Moreover, it has longer hair and larger body compared to the eastern lowland gorilla (Taylor, 102). The two sub-species of the Western Gorilla are Western Lowland Gorilla and Cross River Gorilla. The Western lowland gorilla is also classified as critically endangered with a population of less than 100,000 (Taylor, 105). Its species is located in the Democratic Republic of Congo. Furthermore, its physical characteristics entail a silver-back colouring on the males which also covers the thighs. The hair on their heads is also redder. On the other hand, the Cross River Gorilla has a population of approximately 300 and labelled as critically e

Comparing Income Statements From Different Industries Essay - 1

Comparing Income Statements From Different Industries - Essay Example Their 2013 and 2014 annual reports will facilitate this analysis. The gross profit margin shows the ability of an entity to control its cost of sales and management’s efficiency in producing each unit of a product (Tracy, 2012). From table 1 above, the gross profit margins for General Motors, Alliance Pharmaceutical, Inc., Apple Inc. and Walmart Inc. were 13.19%, 60.29%, 38.58% and 24.82% respectively. Operating profit margin, on the other hand, shows an entity’s ability to control its operating expenses such as selling and distribution costs, and administrative expenses. From table I, operating profit margins for General Motors, Alliance Pharmaceutical, Inc., Apple Inc. and Walmart Inc. were 3.30%, 29.35%, 28.72% and 5.64% respectively. In the same context, the net profit margin indicates an entity’s ability to control its financing expenses (Tracy, 2012). In this regard, General Motors, Alliance Pharmaceutical, Inc., Apple Inc. and Walmart Inc.’s net profit margins were 3.43%, 21.06%, 21.61% and 3.36% respectively as shown in table 1 above. Besides the effects of operating expenses and financing activities on the profit margins computed above, the Entrepreneur Media, Inc. (2009) associates the differences in these margins to the different industries that the companies analyzed in this case operate in. As such, these industries treat their inventories differently from each other1. This paper aimed at comparing profit margins for different companies, operating in different industries. From this comparison, it has been evidenced that an entity’s ability to control its costs, directly affects its gross profit margin, operating profit margin, and net profit margin. Additionally, the different ways in which different entities in different industries account for their inventories also affect their

Classical vs. Keynsian Economics Essay Example for Free

Classical vs. Keynsian Economics Essay There are several significant factors that differentiate Classical from Keynesian economics. Classical economics stays true to the laissez-faire concept of no government mediation in businesses with the assumption that the economy will work itself out. Keynesian economics, on the other hand, revolves around deficit spending and the belief that essentially â€Å"in the long run, we’re all going to die†. Both schools of economics take a different stance on the behavior of consumers, fiscal policy, and government spending. Classical economists, in essence, monitor what is currently transpiring in the economy. They believe that the economy is stable and self-sustaining because in the long run, the market supposedly automatically adjusts to â€Å"booms† and â€Å"busts†. This principle is heavily influenced by the epoch of industrialization – during and after. In a Classical economic model, economists consent individuals’ actions and desires, thus allowing prices to fluctuate based on that individuals’ needs. Say’s Law explicates this phenomenon by saying that supply creates its own demand and in result, the economy is stimulated when more goods are produced. Furthermore, Classicalists do not act with fiscal policies and strongly believe the notion that government spending impedes a nation’s economic growth Keynesian economists believe that the government is imperfect and is not able to sustain itself so government intervention is not only beneficial, but also crucial to mediate the economy. Their stance on fiscal policy is to either contract or expand the economy with specific tools depending on the gap in the economy. In a Keynesian economic model, economists rely on government spending to jumpstart an economy if it was dragged down into a depression. When there is a lack of growth, the government should stimulate demand. Personally, I would agree with Classical economics, but with all the assumptions present it is nearly impossible to side with them. Most of the assumptions are not true and are essential to accurately find a solution to economic problems. For instance, President Ronald Reagan was big on the  theory of hands-off business, yet he plundered the nation into the most drastic deficit; more than all of his predecessors combined. Not having government intervention is nearly impossible since there is always a need to mediate the economy. I would side more with Keynesian economics since there is almost always a practical solution to a problem. In other words, it is like an algorithm: you need so much to get the desired output. For instance, in the Great Depression of 2008, the government efficiently used expansionary fiscal policy to boost the economy. Government spending was vastly increased, as well as taxes. Our economy was gradually remedied by the policies that were enacted upon, thus my reason for siding with Keynesian economics.

Gay, Lesbian and Bisexual Issues - Same-sex Marriage Laws Violate Gay R

Laws Violate Gay Rights When I was in third grade, I learned that there are certain "inalienable rights"-- the right to life, liberty and the pursuit of happiness -- all of which the United States government is committed to protecting for every human. Last week, I learned this government feels that these human rights are limited to some people, based on how they choose to practice sex. In two separate legislations last week, the United States Senate sanctioned discrimination against homosexual Americans. The issue recently surfaced in Hawaii when the state denied marriage privileges to a lesbian couple. In May 1993, the State Supreme Court ruled in a 3-1 decision that the state's exclusion of same-sex marriage was sexual discrimination and thus unconstitutional unless there was "compelling evidence" for it. In 1995, a governor's commission recommended the state grant marital rights to homosexuals. The "full faith and credit" clause of the U.S. Constitution says that states must accord reciprocity to laws (and contracts) of other states. Thus a couple could get married in Hawaii, move to another state and demand that the state recognize their marriage contract unless laws in the new state conflict directly with laws in the former state. This led the House to pass the Defense of Marriage Act (DoMA) this July with the Senate concurring on Sept. 10. Social Security, Veter-an's and other federal benefits such as married tax status will simply be denied to Americans who do not conform to a sexual pattern preferred by others in society. I don't know where in the Constitution Congress is permitted to legislate the morality that a man must marry a woman. Furthermore, DoMA permits states to... ... other may make some people uncomfortable. But their union does not infringe on anyone else's life, liberty or pursuit of happiness, and they have a claim to pursue their human rights and marry each other. What has Congress to gain by passing this restrictive law? It is only election-year politics to woo the radical right. The United States government is unfairly discriminating against a portion of the United States population and we should not stand for this public "gay bashing." Discrimination is still legal because the measure failed 50-49. Senator Pryor (D-Ark.) was attending his son's cancer surgery; otherwise, he would have supported the bill. Vice President Al Gore had promised to break the tie in support of the bill, but the motion failed. Now it is legally OK to not hire someone based on his or her sexual preference.

Pest Analysis of Sainsburys in a 3rd World Country

Introduction of the Company : Sainsburys is the third largest chain of super markets in the United Kingdom. It was founded in 1869 and has been growing all over the United Kingdom ever since, and today operates over 1000 super markets and convenience stores and employees over 150,000 employees and captures more than 16% of the market share. It is also listed on the London Stock Exchange and is the constituent of the FTSE 100 index.Sainsburys not only provides products to its customers but also services to some extent. The products and services offered by Sainsburys have a wide range from food and drinks to energy providing, clothing to insurance, appliances to banking facilities. Sainsburys has been a growing entity at a growing rate. Though TESCO has overtaken Sainsburys to become the market leader and has expanded not only in United Kingdom but also outside the United Kingdom such as Europe, Asia and North America.Since TESCO has always been a strong competitor of Sainsburys so Sai nsburys also has this intention to expand outside United Kingdom, too. It is necessary for a firm or company to carry out a PEST analysis either as a new entrant or to exist and survive in the market to keep it’s self updated with the influence of the macro environmental factors. Introduction of PEST Analysis : PEST analysis stands for â€Å"political, economic, social and technological analysis†. PEST Analysis focuses on analysing the macro-environment in which a business or a firm operates.Each of these factors play a vital role in the overall business environment and one should consider these factors and have vital knowledge of them as they can either make you a success story or may end up shutting down the business. Political factors refer to the economic policy given by the government and the government intervention the economy. This includes areas such as tax policy, labour, law, tarrif and trade restrictions. Political stability is also quite important for the e conomic growth. While, governments have great influence on health, education and infrastructure of the nation.Interest rate, economic growth, monetary and fiscal policy, inflation and the exchange rates are the important economic factors. These factors play a vital role in a firm’s business strategy and decision making. Every country has it’s own culture and the nation has a strong impact on their living. The social and cultural influences on business vary from country to country. Social  factors include the cultural aspects and include health consciousness, language, population growth rate, age distribution, career attitudes.Trends in social factors affect the demand for a company's products and how that company operates. For example, the roles of men and women in the society. Furthermore, companies may change various management strategies to adapt to these social trends Technological  factors have vital place in PEST analysis. Some markets are labour intensive an d some are capital intensive. Technological factors determine  barriers to entry, minimum efficient production level and influence  outsourcing  decisions.It is one of the major drivers of globalization and is the base for competitive advantage. Innovation is offered to the customers or consumers through technology for example internet banking, smart phones etc. It also enables the firm to produce a product cheaply and to a better quality in standard. Pakistan is the sixth most populated country in the world with over 180 million people. It is estimated that the 25% of the population belongs to the middle income class. It is also estimated that 55% of the Pakistani population is in the 10-40 years age bracket.The upper middle-income class is estimated at 17 million with relatively high per capita income which favours more consumer spending. The average Pakistani consumer spends 42% of his income on food related products. The upcoming changes in demographic will create opportun ities and challenges for businesses in Pakistan. Pakistan’s food retail sector is unorganised and highly dominated by independent small stores. Over the past few years, some large European food retailers have opened stores in all major Pakistani metropolitan cities like Makro, Metro and Carrefour (Hyper star).Pakistani families are attracted towards these stores due to their strategic location, multiple product range and imported processed food. Studies also show that there has been a significant shift to organized format of shopping from traditional format, in urban areas. This provides a challenging and profitable opportunity to other food retailers to enter the market. Sainsburys provides convenient shopping under one roof, has wide range of products, consumer friendly environment, large storage and discounted prices.These factors give Sainsburys an advantage over other food retailers currently present in Pakistan. If Sainsburys decides to enter in food retail sector then it has to perform a PEST analysis. PEST Analysis of Sainsburys in Pakistan : Political Factors : The political factors revolve around the current government in a country. Currently, in Pakistan, the ruling party is Pakistan People’s Party which was democratically elected in 2008. Though it is backed by western powers but still is considered to be a weak government.The basic questions arise such as how stable is the political or is there any government intervention in the economic policy making or laws and legislation protecting the businesses. Unfortunately, due to weak governments in the past, the security and corruption has been the key issues Pakistan has been facing over the the last decade. Which certainly is not a good sign for any foreign investors. However, giants in food-retail sectors like Metro and Carrefour ( hyper star) have set an example with an increasing growth in profit and expansion even in such circumstances.Sainsburys may enter in the Pakistani market wit h it’s variety of products which are available under one roof, as the increasing trend in urban areas shows, there will be high demand for it. Political factors may also include the goods and services which the governments want to provide or be provided. Sainsburys collects much of it’s revenue by selling it’s wide range of wines and spirits. Pakistani law prohibits the sale or consumption of any type of wines and spirits within its geographical boundaries, Sainsburys will not be allowed to sell it in their stores which may negatively affect their sales.Government of Pakistan ensures that there is foreign investment in Pakistan and it has signed a few trade agreements too. It also provides foreign investors the incentives to invest here. Partial ownership by the Pakistan government usually serves as an insurance policy for the share holders and the investors. Economic Factors: Extremely volatile oil prices are the root cause of global financial crisis in Pakista n which has also worsened the energy crisis. These two factors increase the cost of production.High inflation is a key resultant of it As Sainsburys produce much of it’s products in stores so they may go beyond their feasible region in producing a product. Interest rates are at their peak, economic growth is quite slow and this is due to the low level of lending and purchasing power of the consumer is weak. Though it is a labour intensive country and labour supply is quite high and also available at low cost than most other countries but unemployment is rising regardless of the above mentioned fact. The gap between rich and poor continues to expand and the percentage of poor is increasing everyday.However relatively quite cheaper labour may do a significant impact in Sainsburys production. It will also bring employment opportunities for young and skilled labour. Heavy loans from financial institutions like IMF and world bank has made the government in debt upto neck and there are no significant changes in sight. However financial aid packages in the name of war on terror and from the friends of Pakistan has kept the economy from collapsing. Pakistan has integrated with global economy and has brought positive impact on economy with increase in GDP.Despite of the worse conditions, Investing in such a country where cheap labour is available and more than half of the country’s population lies in the labour force, targeting middle-income class-keeping the fact in mind that government provides support to private investors would not be a bad decision. Social Factors : The culture and religion are very close to each other in Pakistan. As mentioned above this will affect the sales of wines and spirits of Sainsburys as it is not only prohibited by the dominant religion and prohibited by law but the targeted class does not accept it too.Health and Education are the two important sectors for any developing nations and Pakistan lack both of them and governmen t of Pakistan fails to allocate the required budget in both the sectors. However, people like to shop and come with families to the big retail stores. There has been a significant shift from traditional to organized format. The studies show that 11% of the population tend to buy long life food related products in advance for a month. Sainsburys provides a healthy and safe environment to work with,which for a change would attract the people to work and shop here.In comparison to the past, women have also started to contribute in the labor force. Language will be a barrier for the citizens of Pakistan as english is not the first language in Pakistan. Buying imported products is considered a status symbol in Pakistan so there is a high demand for foreign products in Pakistan and is appreciated in the local market. According to studies people spend 42% of their income on food related products. So there will be high demand for a food related products provided by Sainsburys. Technological Factors :Technological expertise is overflowed in Pakistan as the labour supply and demand for IT professionals is high. There has been an improvement in the industrial sector but still the country’s imports are higher than exports. Since it is a labour intensive area and not capital intensive so use of technology higher the cost of production but shift to focus more on labour may help Sainsburys to produce it’s products relatively cheaper. There is also a trend of buying products online seen. Sainsburys already provides the service of buying it’s products online which saves much time so the typical â€Å"9-5† workforce can also be targeted.