Marketing concept of British Gas Essay Example | Topics and Well Written Essays - 2000 words

Marketing concept of British Gas - Essay Example nsive sales team for the company to increase the sales by cover larger areas geographically These philosophies were used extensively in the past but with time the trends of the industry have evolved. The consumers have become conscious of what they buy and are in constant search for the products which cater their needs in the most appropriate manner (Reibstein, Day, & Wind, 2009). Marketing concept is a theory to support the customer oriented philosophy. It aims to cater the customers in the most effective and efficient manner as compared to the competitors. This method of attracting customers and increasing sales aims at increasing the profitability of the customers in the long-run rather than in the short-run (Reibstein, Day, & Wind, 2009; Vargo, & Lusch, 2004). The marketing concept has evolved with the passage of time. The relevance of the concept has increased in the 21st century because of the increasing number of competitors. Entities have to ensure that the products which the y are offering to the customers must deliver more value to them then the value that was delivered when they used a competitor product. The marketers are of the view that maximizing the quality of the product and is increasing the product offering is not sufficient to gain popularity with the customers. The competitors can also somehow manage to offer the same offerings, so in the 21st century the sellers require ensuring that they acquire a competitive edge on the product of the competitor and offer something beyond to exactly cater the requirements of the customers. This practice will attract the customers towards the product (Reibstein, Day, & Wind, 2009; Drucker, 2007). INTRODUCTION TO BRITISH GAS British Gas Group is a global business which deals with diversified tasks related to...Amongst the utility providers British Gas is a lot more diversified. This is because the company adapts to the change in environment. It has distinctive capability to sustain the commercial agility. T he management of the company sticks to the vision that is set by the decision making of the company. The operations of the group are significantly stable because the group has a set direction and it also has the resources which are required for sustaining the company. CONCLUSION Application of the Marketing concept in the 21st century emphasizes on the importance of satisfying the customer needs to ensure that the marketing process is effective. The competition between the competitors is increasing in the industry. This requires for the companies to strive for excellence and acquiring cost advantage that will benefit the company in accomplishing its goals. The traditional concept of marketing comprised of targeting on improving the quality of products which spoke for themselves and improved the productivity of the company. British Gas is a company which operates as a utility provider in more the 20 countries. The group is showing renowned for its excellent services and this is a major contributor to the edge which it has acquired. It is renowned to offer the services precisely tom cater the needs of the customers which shows the application of Marketing concept by the company.

Terrorist Behavior Essay Example for Free

Terrorist Behavior Essay After reading the article on â€Å"A Look at Terrorist Behavior† I found out some very interesting details on how they plan, prepare and also where they would strike. After reading the article I learned about approximately how close to a target a terrorist would likely live. A recent study shows that most terrorist lives closer to their target of choice. By being so close to their target they would learn and gather information quickly in aiding them to accomplish their mission. They would also end up studying a target for months or even years. According to analysis on terrorist residence to target of all groups around 44% of them live within 30 miles of their required target. There are four types of terrorist groups international, right wing, environmental and left wing groups. However since there are different types of terrorist groups they are different. For example international terrorist mostly lived closer to their targets, when right wing terrorist live in rural areas and would selecting targets in nearby cities. Terrorist mostly use a lot of surveillance and intelligence to help them aide in founding for their group. Most terrorist would stay close to their homes because of new immigration status and sometimes the lack of transportation. Terrorist living in urban areas are most likely would avoid attention. They are known as â€Å"lone wolves† they would target locally much uncoordinated violence such as anti-abortion extremists. Among a single-issue terrorist 77% of preparatory acts usually occurred within 12 miles and 92% occurred within 28 miles of their target. There are about a half of environmental terrorist’s acts only three fifths of them live roughly about 30 miles of their target. 5% of environmental terrorist and 59% international terrorist prepared for their target within 30 miles. Terrorist also conduct robberies, burglaries and thefts further away about an average of 429 miles from their homes. Running Head: Terrorist Behavior. As for law enforcement the implications of finding out about the proximity and preparation and time of a terrorist attack are very significant. With the help of early intelligence this can help law enforcement a lot of time to stop terrorist before an attack. Such Intel will also help local officials to respond rapidly. Law enforcement official must understand that most terrorist act locally and it’s important to know how to conduct a proper investigation method to seek and help prevent terrorism and also arrest perpetrators. Having a local pattern can be more efficiently in patrolling of high-risk target areas and gather enough Intel on suspected terrorist actions. Law enforcement officials will continue to understand and learn the relationship and the locations of terrorists preparation activities and their target of choice will help boost the knowledge and should help officers prevent and respond quickly to a terrorist attacks. Another way for local police to successfully meet the challenges posed by terrorism would be a time-tested approach that emphasizes prevention must converge with new ones that focus on prediction. Local police must also add critical elements of speed, resources, and numbers to any situation when necessary. They must be able to deploy rapidly and can quickly get more forces if needed. Homeland security must be ready at all times for any terrorist acts and threats. Overall I think if our homeland security along with local police train more and learn how terrorist operates I think our country would be safe somehow from a terrorists attack.

Multiculturalism And Non Verbal Communication Cultural Studies Essay

Multiculturalism And Non Verbal Communication Cultural Studies Essay Every part of world follows different culture in all aspects such as business, education, food habits, etc. The world is full of confrontations between people who think, feel differently. Culture is not inherited it is learned. Intercultural studies teach us the cultural difference between people, so this is essentially needed for us to reach out globally, especially in business and workplace. To understand cultural phenomenon it is essential to use cultural paradigms .Cultural differences are unpredictable and confusing this leads to frustration for people who works in different culture head or global business customs. Migration from one culture to another culture is a big culture break which Is very difficult to cope up with it, for example, a manager from Sweden moves to Indonesia to manage an Indonesian company will be a big problem for both because Sweden is task-oriented work culture, but Indonesia is hierarchy-oriented work culture. Migrating from collectivism to individualist ic or vice-versa also have serious impact and face problems. Learning other culture means one should not change their character and mimic local culture, that would create even worse problems, so be yourself and respect local rituals, habits and tradition and act accordingly. Cultural dimensions are really important to know before making any joint ventures or partnership with other culture following people, because something which is good and correct in ones culture will be bad or wrong in another culture. For example, an American company joint venture with Japanese ,the meeting was held in Japan where American representatives his speech in a loud and expressive manner, this made Japanese tensed because speaking loudly and in expressive manner they consider as angry so this clearly shows cultural dimensions are really important and essential in intercultural studies and to understand cultural phenomenon. The culture is the way of living, human behavior is changes and it is depending upon culture. Human behavior differs from different culture, there are various risks of using culture as an example for human behavior in some culture using left hand for handshake or giving any documents is totally bad, but in some culture they prefer left hand when these two culture meet together there developed a negative impression on the human behavior and the culture. Trust between two cultural people gets lost which led to breakdown in business. In some culture women talking to others men expect their relation or friend is a crime especially in Muslim counties, on the flip side many culture men and women are considered towards equal and no restrictions for women. In country like India eating with the left hand is considered as a bad habit, but most westerners are left handed prefer eating in left hand. But these type of behavior is depends upon their culture one should not blame or comment on it. S o people going to global market should aware of all these cultural behavior and understand their culture to have a healthy business relationship. 2. COMMUNICATING NONVERBALLY Nonverbal communication is also called as body language that we communicate without using words at all. People of the other culture will misunderstand our body language just as they may misinterpret the words they speak or write. Fortunately however, we can learn highlights of another cultures nonverbal language much quicker than verbal language (Richard R Gesteland: 2002). Understanding nonverbal communication is very important if we if there is a different cultural meetings because body language of one culture is different and have different meaning in another culture, it may even create an negative impact on people. Nonverbal communication plays a great role in field of business even today. Cultures are varied like very expressive, partially expressive and reserved cultures each have different body language. There are four facets of body language which is very important in cross culture negotiations such as spatial behavior, touch behavior, eye contact and gestures. These play a k ey role in negotiating globally. These nonverbal communications is not only important in business field but also between nations, persons, etc. For example, Former Pakistan president Parvesh Musharaf visited India for a peace talk when there was a handshake with Indian president it was very light handshake, finally the peace talk was failed. This clearly shows how the body language plays an important role globally. The study shows that in business field worlds plays only 7% remaining 93% depends on the body language. Even one is very efficient in speaking can grab the audience attention, not having a good body language message is send to audience before the word goes. Personality development trainings or some business training always give main importance to the body language in first place. Lets see some of the examples of nonverbal communication which is misinterpreted from the other culture. Example 1- Once American business man visited Italy for a business meeting, they were travelling in a car heading to Milan from Florence. Italian colleague drove the car at 145km/hr, when the Italian started discussing about important negotiations, instead of looking the road he started to look American face and his reactions. This made American really scared and he started driving from the half the way. In expressive culture like Italy will like to read your eyes and face when they talk, direct eye contact is critical in their culture .On the other side intense eye contact means in many part of Asia such as Japan, Singapore, etc they think you are to intimidate them or stare them down. Eye contact is the prime factors in business dealings. Example 2- Raising eyebrows many international negotiators will encounter raised eyebrow in many parts of the world. Raising eyebrows is different meaning in different part of the world for North American raising eyebrow means interested, in Germany it means clever,for Filipinos it is a way of saying hello for Chinese it means disagreement .If a Filipino goes to china on a business trip and raised their eyebrow for saying hello, There will be a misinterpretation by Chinese which can cause problems in the talk. Example 3- Index finger pointing In east and south East Asia it is considered as rude to point anyone with forefinger instead can use whole hand flat with palm down. In country like India pointing index finger is considered as an insult, this not the case in American and European countries. When doing business with Asians this is the one of the important body language to be considered. Example 4 -Raising thumb is considered as a universal sign of saying great, but in German it represents numeral 1, But in eastern Mediterranean and parts of Europe it means rude sexual sign. One should be careful in the gestures and body language when going globally. These four examples are sample of body language and how it can misinterpret other culture. Nonverbal communication is critical in international business to overcome misinterpretation intercultural studies and knowledge is very important. 3. MULTICULTURAL TEAMS Multicultural teams has become common because of lot of joint venture organizations globally and outsourcing of the big companies, for example Swedish company joint venture with Japan company, where both Swedish and Japanese tend to work together ,solve problem together. These types of multicultural grouping have lot of positives and also have many challenges because of cultural variations. In this essay we will see about lot of dimensions like how to improve peoples intercultural conflicts, how to get effective cooperation among multicultural team, etc. Multicultural teams are very effective in improving creativity and innovation, it provides better decision making, for example, in an American -German joint venture Germans are technically very rich so they can guide the company in technical way whereas Americans known for their marketing and management skills can reach their market globally. Problem solving either it may be old or new, people coming from multiple cultures can provide better solution. This kind of grouping also minimizes pressure in the work place which occurs when there are like minded people works together. There is a big chance of market opportunities, increasing productivity, expansion of organization, increases business image, multicultural team is critical for success of organization. There are more challenges to face in multicultural teams it can be a success of organization or it can create major crash in organization. Diverse group confronting different values, experience, educational systems, character mainly language. These mingle of various culture creates lots of differences between each other which is leading to internal conflicts, these are mainly because of communication problems. There is a greater possibility of frustration and dissatisfaction in job leading to high turnover of team members. The diversity in the team often having problems in reaching consensus and taking decisions, this is due to ambiguity, miscommunication, and language barrier. When there is a meeting where decision have to be taken, it leads to never ending debate, diversity in agreement of specific plans, etc, these problems paves way to major drop in productivity so there is a mistrust between organization and workers these causes stress in the organization .Another important fact or is people of same culture tend to go along well because of same language, values, background creating inferiority complex with heterogeneous culture peers. Different culture have their own values to follow these values also create great impact on the team performance. For example, A German-British joint venture company where Germans consider technical competence is a high value prepared very wee for the meeting, where as the British in turn skimmed through the papers and shared their point of view. This made Germans more irritated and commented British have lacking technical knowledge which made them to ask stupid questions the example clearly shows cultural values may even affect the relationship between fellow partners. In task-oriented culture specific job is given to individuals where they tend to take whole responsibility if something went wrong. On the flip side collectivist culture the job is given people share their work and the final decision is taken by the boss if something went wrong individual is not blamed whole group takes responsible. When these two cultures mingle each other confusion occurs while working, it may go eve n worse when problem occurs affects the organization so badly. Managing the multicultural team is very important in an organization .If I was leading a team with multicultural peers, I would like to provide proper training to the team mates where they will learn values of different cultures, other cultural dimensions. In my point of view learning cultural dimensions will give background of other cultures, dissolves problems like miscommunication, etc. Insisting lots of group discussions which makes tem members to learn lot of stuffs like tolerance, views, etc. Encourage lots of interaction between peers which ultimately results in growing friendship and make them work comfortably. As a leader one should be more professional verbally, should teach juniors should not boss them, equality should be maintained between all members, trusting the fellow members are the prime factor for effective cooperation. Specific task should be structured, Communication skills should be developed, and the art of patience should be developed between team members. The se factors create effective cooperation in team and make the work place healthy and successful environment. Intercultural competence is a process of how we perceive others and how they perceive us. Intercultural communication competence is basically important in work place, developing the communication skills is the prime way to achieving it. Specific knowledge about the subject should be trained. Culture, religious beliefs, sensitive issues of other religion, importance of values should be trained. Team integrity should be developed to make team members comfortable working with fellow peers this can be done by group discussions, games where all the team members involving and performing specific task .social skills should be developed, equality among the members should be developed, the ability to maintain relationship. These factors really help in improving intercultural competence in a multicultural team. 4. WOMENS SITUATION IN BUSINESS Women situation is different in different area; this is because of the culture in their countries. Unlike men it is not easy for women to enter into the business world even though they are more skillful. They need to their maximum output to prove themselves; these kinds of practices are mostly seen in hierarchical cultures. In Muslim countries women are not allowed to enter into business, their job is to take care of the house and children. If a women working in Muslim country they should be very careful in their way of dressing, ways in maintaining relationship with fellow mates. Women are facing many challenges than men in business and all fields, Men may try to give comments on women beauty, hair, etc which may be disgusting to hear this leads to frustration in work. In some male dominant culture, women are not allowed to develop after a certain level even if they are more eligible than the opposite sex. Equal opportunity is not given to women this is because mens think women are slow moving and take decisions late. Most women are given job like receptionist, secretary, etc. Security issues are major problem for women in some countries secured floors are especially build for women entrepreneurs to avoid problems. After a business meeting women representatives are not allowed to enter parties showing difference of gender which will affect social and relationship (partys are meant for gluing relationship).In some cases women are not allowed to share their idea in a meeting male managers dominate without getting views of fellow mate this may also affect the or ganization. In some places maternity issue also plays a major role restricting women to grow in an organization. Moreover majorly women faces sexual issues and threats these are majorly in low developed countries. The prime factor is to develop a self confidence and courage is needed for women in business field, women can accord status in business situation by developing professionalism, strong relationship, learning the culture, code of conduct and values other culture who they are doing business with. Strong communication skills and dominant knowledge is also essential. Female are given equal importance in field of business especially in countries like Sweden, Denmark, Norway, USA, and other European countries. To overcome the problems women facing in business field can be overcome easily. Women should like a reserve manner with business colleagues, being over-friendly and open might cause problems. When entering hierarchical culture, prefer higher rank official to give introduction and explain their qualification before starting a meeting this makes people in the meeting to get attention .In Muslim country women can also be successful by knowing their culture and acting according to it, women must be very careful in dressing and have to keep good relationship with colleagues ,interact in professionalism ,have to be subtle and non threatening manner. If a people tried to use words in wrong sense should not react to that. If a male colleague tried to put hand and take advantage instead of creating problems a big no is more than enough to end the problem. Women should be more courageous in business field than man .Deal the problem patiently, consult and make decision with fellow workers. Do n ot wear jewels and carry lot of money when going to under developed countries. Before going to place where they practice other culture try to study their culture and act accordingly. Thrash your inferiority complex when entering male dominant society. The world is changing and there are more women entrepreneurs coming some of them made a very big impact in business field. Equality in gender is already following in lot of countries, mainly in developed countries. Still there are many countries where they are fighting for women rights. To avoid this inequality proper education is given to people and the law should enforce for equality between genders. For example in Sweden women are given equal importance in every field which made them high in success ratio than in male dominant culture.

Human Resource Managementa Case Study Essay -- Personnel Management

Human Resource Managementa Case Study Management of Human Resources-Assignment Introduction: In order to critically assess and recommend alternatives, I would like firstly to give a brief description of the business crisis the company was facing and the subsequent need for change in the company’s overall business strategy. I would then like to focus on the key aspects of the firm’s human resources strategy and the changes that were made in order to supplement the overall changes in the business strategy. Business Crisis: International Computers Limited (ICL) was born in 1968 out of the merger between English Electric Computers (EEC) and International Computers and Tabulators. With  £40 million of government support it developed over a period of 6 years, an independent series of computers that was incompatible with IBM computers. IBM had garnered a 50% share of the UK computer market and the government felt the only way to stem this growth was through the integration of British high tech firms. With the government as one of its major customers and through several strategic acquisitions and product diversifications during the 1970’s, the company managed to achieve growth rates of around 20%. But this growth did not continue for long as the recession struck in 1979 and growth rates spiralled. By late 1980 the company was facing a  £100 million shortfall in orders, in spite of having taken some major redundancy procedures. The firm was on the verge of bankruptcy when the government agreed to a ct as a guarantor for a  £270 million bank overdraft. The government subsequently exercised its power of guarantee by installing a new chairman and two new directors, one of who was Robb Wilmott, the new MD. Wilmott was a perceptive man who realised that the only way ICL was going to survive was by planning for the long-term and this was to be achieved by formulating a new product strategy and a complete change in the way it did business. Sparrow P 1995 International Computers Limited (ICL) In: Hiltrop J, Sparrow P (eds.) European Casebook on Human Resource and Change Management Prentice Hall, pp 110-122 Downsizing: The rapidly changing global environment with regard to competition and technological advances in the industry and ICL’s subsequent decision to shift from hardware to total systems differentiation, led the MD to pursue a new strategy based ... ...and Lorenz. 1994a) discusses the main problems associated with the implementation of this structure, including the possibility of role conflict, power struggles with regard to establishment of authority, inappropriate decision making techniques and difficulty in establishing accountability. Though it may be argued that every form of organisational structure has both strong and weak points, maybe a structure that is applicable to the environmental context, as well as having fewer disadvantages attached to could be applied. My personal view would be implementation of a structure based on product grouping, which in essence is similar to the matrix, but appears to posses fewer disadvantages. Reference:  · Sparrow P 1995 International Computers Limited (ICL) In: Hiltrop J, Sparrow P (eds.) European Casebook on Human Resource and Change Management Prentice Hall, pp 110-122 Bibliography: 1. Armstrong M 1999 A Handbook of Human Resource Management Practice 7th edn. Kogan Page, London 2. McKenna E 2000 Business Psychology And Organisational Behaviour 3rd edn. Psychology Press 3. Handy C 1995 Gods Of Management 4th edn. Arrow Books Ltd

Global Pharmaceutical Industry

INTRODUCTION According to Hunter s. Thomas â€Å"you can turn your back on person, but never turn your back on a drug, especially when it's waving a razor sharp hunting. † The global pharmaceutical industry had done tremendous contribution to mankind, but now pharmaceutical companies are facing tough time in a decade. The case is broken in to different parts which is emphasized on how internal and external factors affecting the industry firstly, the main environmental forces currently affecting the industry through PEST analysis.Secondly, the implications of the changes in business environment that is internal factors through porter's five force theory. Finally, the use and limitations of the tools applied to solve case are discussed. ORIGIN AND EVOLUTION The present pharmaceutical industries are non-assembled and more of competitive but it had emerged in early 19th century in the Rhine valley near Basel Switzerland where dyestuffs were found to have antiseptic properties.Comp anies like Hoffman-la rochy, Sandoz, Novartis are all started as Rhine based family dyestuff and chemical companies, which are still doing tremendous business even to day. Slowly these chemical companies started making pharmaceuticals and synthetic chemicals and evolved as global players. In early 1940's the industry showed drastic changes such as introduction of penicillin and other drugs. In 1960's industry growing rapidly with the setting up of R&D not only this economies prospered by the spending on health care in same period.In 1970's industry showed major development but a strong regulatory controls also came into existence with this development, and this regulatory controls had removed the rule of permanent patent to some fixed period which resulted in birth of branded generics. ENVIRONMENTAL FORCES EFFECTING PHARMACEUTICAL INDUSTRY The scan of external macro environment in which the firm operates can be expressed in terms P- POLITICAL E-ECONOMICAL S-SOCIAL T-TECHNOLOGY POLIT ICAL FACTORS AFFECTING THE SECTORPolitical factors includes government regulations and legal issues defines both formal and informal rules under which firm operates some example like tax policy, trade restrictions and tariffs, political stability. Political arena has huge influence up on the regulations of business and the spending power of consumers and other business. Over many years the pharmaceuticals industry has increased political attentions because of increase in recognitions of the economic important of healthcare as a component of social welfare .It takes 10-15 years on average to experiment drug to travel from lab to patient consumption, as patent protection is fixed that is only 20 years but companies has to spend 15 years on experiments by the time it reaches to the market the patent will be almost comes to expired and which will result in birth of generic medicines which has exactly same ingredients as of branded drugs but shows huge difference in price, because the ge neric brand does not spend on clinical trials so the entry of generic are the major impact on pharmacy industry because of the legal policy set by political forces example in us 84% of sales had been dropped in 12 weeks by Allegra hay fever treatment because of expiry of patent in 2006. Another major problem affecting the industry in many countries are monophony which means only one powerful purchaser who are government. Since 1980 government around the world attracting pharmaceuticals as a politically easy target in their effort to control l in increasing health care expenditure like price and reimbursement controls and also the industry loosed both public and political support to resist this change.In 1990 the effect of economic recession had lead to fall in tax revenue, the government forever changing cost containment plans had become operations of the company unstable in European market which is highly fragmented, moreover the expansion of EU had provided many opportunities but it also raised new challenges from generics and low priced imports. ECONOMIC FACTORS AFFECTING THE SECTOR Economic factors affect the purchasing power of potential customers and the firms cost of capital examples like economic growth, interest rates and exchange rates. The government price control is a major challenge to the industry in the form of parallel trade. Parallel trade is nothing but free movement of the product across the Europe with out any trade barriers which will affect the local manufacture because the distributor will buy drugs in low price markets and export them to high price markets example buying the product from manufacture in Poland and exporting them to Ireland.The exchange rates and currency problem is also one of the major issue for example Canada has inflexible pricing and reimbursement criteria, where USA does not have price controls as a results the price drug in America is high compare to Canada which leads to damage of brand image in consumers mind for example price of Lipitor is 3. 20/pill in USA where in Canada which is 1. 89/pill for same drug. Not only this, the growth of pharmaceutical market is aligned with GDP growth. As R&D productivity is declined and development times were lengthened, as clinical trials are becoming more complex and costly there was sharp rise in R&D expenditure. SOCIAL CULTURAL FACTORS AFFECTING THE SECTORSocial factors includes the demographic and cultural aspects of the external macro environment these factors effects customers needs and the size of potential markets, some social factors include health consciousness, population growth rate, age distribution, emphasis on safety and carrier attitudes. ageing populations are creating pressure on healthcare funding systems as over 65 consumes four times more than that of below 65 which leads to more expensive technology solutions and increase in patient expectations had created an unsustainable situation to the industry. Some countries cannot enjoy unive rsal coverage system and latest treatments because they are not funded by the insurance companies like USA which can afford latest technology but cannot share the benefits because of increasing populations in different parts of the world.In developed countries consumer are benefited by the insurance and can afford ethical drugs but the countries who cannot afford to ethical drugs are switching to generic to save coast which pressuring pharmacists to substitute generic drug as the first choice, patented drugs are only used if generic drug fails. The OTC(over the counter) comprise of 20% of market which may purchase without prescription specially OTC is more in developing countries and also for these the patented drug companies has introduce disease management initiatives to attack the challenges from generic. Some consumer does not want to use biopharmaceuticals because they genetically done. TECHNOLOGICAL FACTORS AFFECTING THE INDUSTRY Technological factors can lower barriers to ent ry, reduce minimum efficient production levels and influence outsourcing decisions. Some of the technological factors includes R&D activity, technology incentivise and rate of technology change. he technology is an competitive advantage to the companies and success of R&D lays in team working, knowledge management and close relation with external flexible and some indicates lean and flexible operations and out sourcing is a gate way of success not only these there are many questions raised that the investment on R&D is could not sustain for example in 2005 there are nearly 650 cancers drugs in development. The utilization of technology is very expensive because it includes latest instruments which is possible only for developed countries to use technology because they are funded by insurance companies and product developed by this technology cannot afford in developing countries because of its huge investment.THE IMPLICATIONS OF THE CHANGING BUSINESS ENVIRONMENT OF THE PHARMACEUTICA L INDUSTRY Porter's five force model â€Å"The porter's model is an outside in business unit strategy tool used to know value of industrial structure. The competitive force analysis is made by the identification of five fundamental competitive forces. â€Å"(12MANAGE:2009) POTENTIAL ENTRANCE The threat of new entry is low in this sector because companies has to spend huge amount to produce a product, so investment for the capital is very huge and its as to follow many rules and regulations set up by the government and to maintain the standard which where set is very difficult for new companies which want to enter into market.More over it is very risky business because it takes 10-15 years for new market to come into market and nobody is sure about the success of the products and patent time is also limited. POTENTIAL SUPPLIER Bargaining power of supplier is low because there are only few suppliers because the suppliers in this industry are different from other industries as ingred ients used to make drugs are chemicals so the suppliers are chemical industries. It is very difficult for the suppliers to sustain in the market because if they increase their price the company may change supplier who supply raw materials comparatively low price compare to existing one and industry is not key customer group to the supplier. Brand image, role of quality, service of supplier is not considered by the industry. POTENTIAL BUYERSBargaining power of buyer is high because main buyers are generally government and the companies that is monophony and companies cannot go against them and they can only sell the product to government the other side of the buyer are consumers who's buying power is also high because of substitute available in markets and brand loyalty is low in consumers. POTENTIAL SUBSTITUTES Threat of substitutes is high in this industries, there are many substitute products in market like generics, branded generics, biopharmaceuticals as they are very cheap comp are to the branded drugs as discussed earlier that branded drugs will consider only when generic drugs fails. And import of drugs from china and India which are produce very cheaply compare to local producers. COMPETITIVE RIVALRYCompetitive rivalry is high in this sector because advantage gained by the first mover advantages (patent). As market is getting saturating companies are going global which means world wide launches, global branding and heavy investment in promotion as shorter product life cycle and to gain competitive advantage. In spite of taking care during launching the industry is still faces tough time from generic drugs and not only this merges and acquisitions as one of the major cause for competitive rivalry. SWOT ANALYSIS OF PHARMACEUTICALS â€Å"Swot analysis provide information that is helpful in matching firm resources and capabilities to the competitive environment in which it operates. â€Å"(QUICKMBA: 2007) S-STRENGTH W-WEAKNESS O-OPPORTUNITIES T-THREATSThe environmental factors internal are strength and weakness and external are threats and opportunities. STRENGTHS Patent is one of the major strength in this sector of industry which has strong brand names such as Pfizer, GlaxoSmithKline, Merck, Johnson and Johnson, Novartis. The above mentioned companies have good reputations among the consumers The sector have cost advantages from propriety know-how This sector company have exclusive access to high grade natural recourses The sector has favourable access to distribution networks WEAKNESS Patent is consider as strength of this sector but due to limited time for patent had become its weakness. The products from this sector have side effects.The products take long time in development such as clinical trials which takes 10-15 years. It involves high cost structures such as investment on R;D, advertising. One of the major weaknesses is regulatory and legal issues by FDA. OPPORTUNIITIES Human needs are unfulfilled, so this unfulfilled nee ds are the opportunities for develop new products. The arrival of new technology as technology keeps on changing time by time. The removal of internal barrier like free movements of goods within EUROPEAN UNION. Due to pressure from big branded companies as this sector contributes major share to economy due to there pressure loosening of regulations may be happen in future. THREATSGenerics are the major threat to this sector The shift in customers taste away from the firm's products, customer in this sector does not have particular brand. Availability of huge range of substitutes in markets Entry barriers to some countries Parallel trade is also one of the major threat to this industry. USES AND LIMITATIONS OF TOOLS PEST USE Pest analysis looks at the external environment and good tool to understand big picture of the environment in which business operates. And it will allow companies to take opportunities and reduces threat of a company which they are facing. Pest analysis provide f urther plan to a company to develop if strategic plan is done correctly.With the pest analysis companies can see longer horizontal time and able to differentiate opportunities and threats and also help companies to look outside environment and what are the potential forces which going to affect. Pest is a mnemonic standing for political, economic, social and technology which are use to brain storm the characteristics of a industry and can draw conclusion as the significant forces of change operating with in it. More over it is useful to avoid taking actions which results in failure, it is very useful especially in starting new products because it will avoid assumptions and make to adopt quickly the reality of the new environment, it is straightforward and easy to adopt, broad categories covering major environmental factors and will provide more data about influence. LIMITATIONSIt is not a set of rigid compartment to store ideas more over pest analysis does not analyse all the detail s in the external environments like markets, share holder, creditors, supra-national bodies, pressure groups and labour markets. PORTER'S FIVE FORCE USE Porter's five forces theory is valuable contribution to study competition it give important information in three aspects. STATICAL ANALYSIS: It determine industrial attractiveness and gives an over view of profitability, this model helps in entry and exit questioning a market segment and used to compare influence of competitor forces and influence of competitors . DYNAMICAL ANALYSIS: It helps to understand potential future attractiveness of the industry. ANALYSIS OF OPTIONS:The knowledge and power of five forces help company to develop options to improve position of the company which results in new strategic direction like new differentiation for competitive products of strategic partnerships. Moreover, porter's five force models gives systematic and structured analysis of market structure and competitive situation, this model is ap plicable universal such as particular company, market segment and industries. LIMITATIONS Care should be taken while using this model such as never under estimate the important of current strength of the company. The model design for analyzing individual business strategies and it will not support the interdependence and synergy with portfolio of larger corporate.If we look from the theoretical side the model does not show possibility that an industry could be attractive because some companies in it. More over some times it may be possible to create complete new markets instead of selecting from existing one and also some people argued that environments which are characterized by rapid, systemic and quick changes require more flexible, dynamic approach for strategy formations. SWOT ANALYSIS USE The name it self say it is used to identify company's strengths, weakness, opportunities and threats. And use to formulate strategies the analysis usefulness of SWOT is not limited to profit seeking organizations.It is used in decision making situation when a desired end -state has been defined, and it is used in pre crisis planning and prevention and also used to in creating a recommendation during a viability study LIMITATIONS It has ability to over simplify the situation by dividing the firms environmental factors into categories in which they may not fit. The classifications of some factors as strength or weakness, or as opportunities or threats is some what peculiar CONCLUSION The pharmaceutical industry made tremendous contribution to man kind but, the industry is facing tough time in this decade. Yet it is targeted by government, media in spite of huge investment on R&D and the product life is getting shorter. Free trade, parallel trade and exchange rate are oreover the birth of generics, creating major problems to the industry. Niche areas getting crowded creating price pressure, but the presence of global expertise firms like Pfizer, Merck will stand as global opportunities. The industry more than ever needs to get a handle on the slippery business of scientific creativity and provided it critics with indisputable evidence of its value. BIBLIOGRAPHY Johnson et. al (2007). Exploring corporate strategy. 8th ed. England: Pearson Education. 915 Quickmba. (2007). Swot analysis. Available: http://www. quickmba. com/strategy/swot/. Last accessed 30 Oct 2009. Answers corporations. (2009). Swot analysis.Available: http://www. answers. com/topic/swot-analysis. Last accessed 30 Oct 2009. 12 manage. (2009). Five Competitive Forces. Available: http://www. 12manage. com/methods_porter_five_forces. html. Last accessed 30 Oct 2009. 12 manage. (2009). Five Competitive Forces. Available: http://www. 12manage. com/methods_porter_five_forces. html. Last accessed 30 Oct 2009. Olivia Hunt. (2008). Evaluation of five force theory. Available: http://www. articlesbase. com/education-articles/evaluation-of-the-five-forces-theory-176854. html. Last accessed 01 Nov 2009. Olivia Hunt. (2007). Study of Porter's Five Forces Theory. Available: http://www. articlealley. om/article_185592_15. html. Last accessed 01 Nov 2009. Netmba. (2007). PEST ANALYSIS. Available: http://www. netmba. com/strategy/pest/. Last accessed 01 Nov 2009. Quickmba. (2007). PEST ANALYSIS. Available: http://www. quickmba. com/strategy/pest/. Last accessed 02 Nov 2009. Verbigena. (2008). History and analysis of pharmaceutical industry. Available: www. verbigena. com/case_studies/history_analysis. pdf. Last accessed 10 Nov 2009 Papers4u. (2009). what is pest analysis. Available: http://www. coursework4you. co. uk/essays-and-dissertations/pest-analysis. php. Last accessed 10 Nov 2009 G. A. Cole  (2005). Strategic Management. 2nd ed. London: person. 506 Read Global Pharmaceutical Industry INTRODUCTION According to Hunter s. Thomas â€Å"you can turn your back on person, but never turn your back on a drug, especially when it's waving a razor sharp hunting. † The global pharmaceutical industry had done tremendous contribution to mankind, but now pharmaceutical companies are facing tough time in a decade. The case is broken in to different parts which is emphasized on how internal and external factors affecting the industry firstly, the main environmental forces currently affecting the industry through PEST analysis.Secondly, the implications of the changes in business environment that is internal factors through porter's five force theory. Finally, the use and limitations of the tools applied to solve case are discussed. ORIGIN AND EVOLUTION The present pharmaceutical industries are non-assembled and more of competitive but it had emerged in early 19th century in the Rhine valley near Basel Switzerland where dyestuffs were found to have antiseptic properties.Comp anies like Hoffman-la rochy, Sandoz, Novartis are all started as Rhine based family dyestuff and chemical companies, which are still doing tremendous business even to day. Slowly these chemical companies started making pharmaceuticals and synthetic chemicals and evolved as global players. In early 1940's the industry showed drastic changes such as introduction of penicillin and other drugs. In 1960's industry growing rapidly with the setting up of R&D not only this economies prospered by the spending on health care in same period.In 1970's industry showed major development but a strong regulatory controls also came into existence with this development, and this regulatory controls had removed the rule of permanent patent to some fixed period which resulted in birth of branded generics. ENVIRONMENTAL FORCES EFFECTING PHARMACEUTICAL INDUSTRY The scan of external macro environment in which the firm operates can be expressed in terms P- POLITICAL E-ECONOMICAL S-SOCIAL T-TECHNOLOGY POLIT ICAL FACTORS AFFECTING THE SECTORPolitical factors includes government regulations and legal issues defines both formal and informal rules under which firm operates some example like tax policy, trade restrictions and tariffs, political stability. Political arena has huge influence up on the regulations of business and the spending power of consumers and other business. Over many years the pharmaceuticals industry has increased political attentions because of increase in recognitions of the economic important of healthcare as a component of social welfare .It takes 10-15 years on average to experiment drug to travel from lab to patient consumption, as patent protection is fixed that is only 20 years but companies has to spend 15 years on experiments by the time it reaches to the market the patent will be almost comes to expired and which will result in birth of generic medicines which has exactly same ingredients as of branded drugs but shows huge difference in price, because the ge neric brand does not spend on clinical trials so the entry of generic are the major impact on pharmacy industry because of the legal policy set by political forces example in us 84% of sales had been dropped in 12 weeks by Allegra hay fever treatment because of expiry of patent in 2006. Another major problem affecting the industry in many countries are monophony which means only one powerful purchaser who are government. Since 1980 government around the world attracting pharmaceuticals as a politically easy target in their effort to control l in increasing health care expenditure like price and reimbursement controls and also the industry loosed both public and political support to resist this change.In 1990 the effect of economic recession had lead to fall in tax revenue, the government forever changing cost containment plans had become operations of the company unstable in European market which is highly fragmented, moreover the expansion of EU had provided many opportunities but it also raised new challenges from generics and low priced imports. ECONOMIC FACTORS AFFECTING THE SECTOR Economic factors affect the purchasing power of potential customers and the firms cost of capital examples like economic growth, interest rates and exchange rates. The government price control is a major challenge to the industry in the form of parallel trade. Parallel trade is nothing but free movement of the product across the Europe with out any trade barriers which will affect the local manufacture because the distributor will buy drugs in low price markets and export them to high price markets example buying the product from manufacture in Poland and exporting them to Ireland.The exchange rates and currency problem is also one of the major issue for example Canada has inflexible pricing and reimbursement criteria, where USA does not have price controls as a results the price drug in America is high compare to Canada which leads to damage of brand image in consumers mind for example price of Lipitor is 3. 20/pill in USA where in Canada which is 1. 89/pill for same drug. Not only this, the growth of pharmaceutical market is aligned with GDP growth. As R&D productivity is declined and development times were lengthened, as clinical trials are becoming more complex and costly there was sharp rise in R&D expenditure. SOCIAL CULTURAL FACTORS AFFECTING THE SECTORSocial factors includes the demographic and cultural aspects of the external macro environment these factors effects customers needs and the size of potential markets, some social factors include health consciousness, population growth rate, age distribution, emphasis on safety and carrier attitudes. ageing populations are creating pressure on healthcare funding systems as over 65 consumes four times more than that of below 65 which leads to more expensive technology solutions and increase in patient expectations had created an unsustainable situation to the industry. Some countries cannot enjoy unive rsal coverage system and latest treatments because they are not funded by the insurance companies like USA which can afford latest technology but cannot share the benefits because of increasing populations in different parts of the world.In developed countries consumer are benefited by the insurance and can afford ethical drugs but the countries who cannot afford to ethical drugs are switching to generic to save coast which pressuring pharmacists to substitute generic drug as the first choice, patented drugs are only used if generic drug fails. The OTC(over the counter) comprise of 20% of market which may purchase without prescription specially OTC is more in developing countries and also for these the patented drug companies has introduce disease management initiatives to attack the challenges from generic. Some consumer does not want to use biopharmaceuticals because they genetically done. TECHNOLOGICAL FACTORS AFFECTING THE INDUSTRY Technological factors can lower barriers to ent ry, reduce minimum efficient production levels and influence outsourcing decisions. Some of the technological factors includes R&D activity, technology incentivise and rate of technology change. he technology is an competitive advantage to the companies and success of R&D lays in team working, knowledge management and close relation with external flexible and some indicates lean and flexible operations and out sourcing is a gate way of success not only these there are many questions raised that the investment on R&D is could not sustain for example in 2005 there are nearly 650 cancers drugs in development. The utilization of technology is very expensive because it includes latest instruments which is possible only for developed countries to use technology because they are funded by insurance companies and product developed by this technology cannot afford in developing countries because of its huge investment.THE IMPLICATIONS OF THE CHANGING BUSINESS ENVIRONMENT OF THE PHARMACEUTICA L INDUSTRY Porter's five force model â€Å"The porter's model is an outside in business unit strategy tool used to know value of industrial structure. The competitive force analysis is made by the identification of five fundamental competitive forces. â€Å"(12MANAGE:2009) POTENTIAL ENTRANCE The threat of new entry is low in this sector because companies has to spend huge amount to produce a product, so investment for the capital is very huge and its as to follow many rules and regulations set up by the government and to maintain the standard which where set is very difficult for new companies which want to enter into market.More over it is very risky business because it takes 10-15 years for new market to come into market and nobody is sure about the success of the products and patent time is also limited. POTENTIAL SUPPLIER Bargaining power of supplier is low because there are only few suppliers because the suppliers in this industry are different from other industries as ingred ients used to make drugs are chemicals so the suppliers are chemical industries. It is very difficult for the suppliers to sustain in the market because if they increase their price the company may change supplier who supply raw materials comparatively low price compare to existing one and industry is not key customer group to the supplier. Brand image, role of quality, service of supplier is not considered by the industry. POTENTIAL BUYERSBargaining power of buyer is high because main buyers are generally government and the companies that is monophony and companies cannot go against them and they can only sell the product to government the other side of the buyer are consumers who's buying power is also high because of substitute available in markets and brand loyalty is low in consumers. POTENTIAL SUBSTITUTES Threat of substitutes is high in this industries, there are many substitute products in market like generics, branded generics, biopharmaceuticals as they are very cheap comp are to the branded drugs as discussed earlier that branded drugs will consider only when generic drugs fails. And import of drugs from china and India which are produce very cheaply compare to local producers. COMPETITIVE RIVALRYCompetitive rivalry is high in this sector because advantage gained by the first mover advantages (patent). As market is getting saturating companies are going global which means world wide launches, global branding and heavy investment in promotion as shorter product life cycle and to gain competitive advantage. In spite of taking care during launching the industry is still faces tough time from generic drugs and not only this merges and acquisitions as one of the major cause for competitive rivalry. SWOT ANALYSIS OF PHARMACEUTICALS â€Å"Swot analysis provide information that is helpful in matching firm resources and capabilities to the competitive environment in which it operates. â€Å"(QUICKMBA: 2007) S-STRENGTH W-WEAKNESS O-OPPORTUNITIES T-THREATSThe environmental factors internal are strength and weakness and external are threats and opportunities. STRENGTHS Patent is one of the major strength in this sector of industry which has strong brand names such as Pfizer, GlaxoSmithKline, Merck, Johnson and Johnson, Novartis. The above mentioned companies have good reputations among the consumers The sector have cost advantages from propriety know-how This sector company have exclusive access to high grade natural recourses The sector has favourable access to distribution networks WEAKNESS Patent is consider as strength of this sector but due to limited time for patent had become its weakness. The products from this sector have side effects.The products take long time in development such as clinical trials which takes 10-15 years. It involves high cost structures such as investment on R;D, advertising. One of the major weaknesses is regulatory and legal issues by FDA. OPPORTUNIITIES Human needs are unfulfilled, so this unfulfilled nee ds are the opportunities for develop new products. The arrival of new technology as technology keeps on changing time by time. The removal of internal barrier like free movements of goods within EUROPEAN UNION. Due to pressure from big branded companies as this sector contributes major share to economy due to there pressure loosening of regulations may be happen in future. THREATSGenerics are the major threat to this sector The shift in customers taste away from the firm's products, customer in this sector does not have particular brand. Availability of huge range of substitutes in markets Entry barriers to some countries Parallel trade is also one of the major threat to this industry. USES AND LIMITATIONS OF TOOLS PEST USE Pest analysis looks at the external environment and good tool to understand big picture of the environment in which business operates. And it will allow companies to take opportunities and reduces threat of a company which they are facing. Pest analysis provide f urther plan to a company to develop if strategic plan is done correctly.With the pest analysis companies can see longer horizontal time and able to differentiate opportunities and threats and also help companies to look outside environment and what are the potential forces which going to affect. Pest is a mnemonic standing for political, economic, social and technology which are use to brain storm the characteristics of a industry and can draw conclusion as the significant forces of change operating with in it. More over it is useful to avoid taking actions which results in failure, it is very useful especially in starting new products because it will avoid assumptions and make to adopt quickly the reality of the new environment, it is straightforward and easy to adopt, broad categories covering major environmental factors and will provide more data about influence. LIMITATIONSIt is not a set of rigid compartment to store ideas more over pest analysis does not analyse all the detail s in the external environments like markets, share holder, creditors, supra-national bodies, pressure groups and labour markets. PORTER'S FIVE FORCE USE Porter's five forces theory is valuable contribution to study competition it give important information in three aspects. STATICAL ANALYSIS: It determine industrial attractiveness and gives an over view of profitability, this model helps in entry and exit questioning a market segment and used to compare influence of competitor forces and influence of competitors . DYNAMICAL ANALYSIS: It helps to understand potential future attractiveness of the industry. ANALYSIS OF OPTIONS:The knowledge and power of five forces help company to develop options to improve position of the company which results in new strategic direction like new differentiation for competitive products of strategic partnerships. Moreover, porter's five force models gives systematic and structured analysis of market structure and competitive situation, this model is ap plicable universal such as particular company, market segment and industries. LIMITATIONS Care should be taken while using this model such as never under estimate the important of current strength of the company. The model design for analyzing individual business strategies and it will not support the interdependence and synergy with portfolio of larger corporate.If we look from the theoretical side the model does not show possibility that an industry could be attractive because some companies in it. More over some times it may be possible to create complete new markets instead of selecting from existing one and also some people argued that environments which are characterized by rapid, systemic and quick changes require more flexible, dynamic approach for strategy formations. SWOT ANALYSIS USE The name it self say it is used to identify company's strengths, weakness, opportunities and threats. And use to formulate strategies the analysis usefulness of SWOT is not limited to profit seeking organizations.It is used in decision making situation when a desired end -state has been defined, and it is used in pre crisis planning and prevention and also used to in creating a recommendation during a viability study LIMITATIONS It has ability to over simplify the situation by dividing the firms environmental factors into categories in which they may not fit. The classifications of some factors as strength or weakness, or as opportunities or threats is some what peculiar CONCLUSION The pharmaceutical industry made tremendous contribution to man kind but, the industry is facing tough time in this decade. Yet it is targeted by government, media in spite of huge investment on R&D and the product life is getting shorter. Free trade, parallel trade and exchange rate are oreover the birth of generics, creating major problems to the industry. Niche areas getting crowded creating price pressure, but the presence of global expertise firms like Pfizer, Merck will stand as global opportunities. The industry more than ever needs to get a handle on the slippery business of scientific creativity and provided it critics with indisputable evidence of its value. BIBLIOGRAPHY Johnson et. al (2007). Exploring corporate strategy. 8th ed. England: Pearson Education. 915 Quickmba. (2007). Swot analysis. Available: http://www. quickmba. com/strategy/swot/. Last accessed 30 Oct 2009. Answers corporations. (2009). Swot analysis.Available: http://www. answers. com/topic/swot-analysis. Last accessed 30 Oct 2009. 12 manage. (2009). Five Competitive Forces. Available: http://www. 12manage. com/methods_porter_five_forces. html. Last accessed 30 Oct 2009. 12 manage. (2009). Five Competitive Forces. Available: http://www. 12manage. com/methods_porter_five_forces. html. Last accessed 30 Oct 2009. Olivia Hunt. (2008). Evaluation of five force theory. Available: http://www. articlesbase. com/education-articles/evaluation-of-the-five-forces-theory-176854. html. Last accessed 01 Nov 2009. Olivia Hunt. (2007). Study of Porter's Five Forces Theory. Available: http://www. articlealley. om/article_185592_15. html. Last accessed 01 Nov 2009. Netmba. (2007). PEST ANALYSIS. Available: http://www. netmba. com/strategy/pest/. Last accessed 01 Nov 2009. Quickmba. (2007). PEST ANALYSIS. Available: http://www. quickmba. com/strategy/pest/. Last accessed 02 Nov 2009. Verbigena. (2008). History and analysis of pharmaceutical industry. Available: www. verbigena. com/case_studies/history_analysis. pdf. Last accessed 10 Nov 2009 Papers4u. (2009). what is pest analysis. Available: http://www. coursework4you. co. uk/essays-and-dissertations/pest-analysis. php. Last accessed 10 Nov 2009 G. A. Cole  (2005). Strategic Management. 2nd ed. London: person. 506 Read

Sociology Debates Pluralism and Elitism

Sociology Debates Pluralism and Elitism Sociology debates have evolved over two political theories namely: pluralism and elitism. The power elite theory however, seems to be true compared to the pluralist view which holds that participation in politics is democratic where people participate in politics through group membership by creating public policies on competitive and compromising basis.Advertising We will write a custom assessment sample on Sociology Debates: Pluralism and Elitism specifically for you for only $16.05 $11/page Learn More On the other hand, elitism maintains that political and decision making positions are held by elites who are unified for their personal gains and hence are not representative. This is very true as a great number of political leaders do participate in politics only for selfish gains rather than to serve their people. Additionally, power is only set aside for particular elite members and institutional positions are not open to other non elite members. This is e videnced in many political positions in many countries where the key positions in governments are held only by superior and intellectual members. This particular group takes control of the country’s economy where decisions are made based on personal interests rather than from a consensual basis. This domination by the elite groups results to conflicts between the leaders and the ruled. A good example of this rule is where a county’s political leaders raise tax payments from the citizens with the aim of raising their salaries at the expense of the tax payer while they themselves do not pay taxes despite the huge salaries and other benefits they get from the government. Since the elite groups are the decision makers, the members are left powerless as they have to obey and play by the decisions of their leaders. In this context, the top leadership positions have authority to run all the activities and programs in many fields such as legal issues, economic, scientific and civil institutions among others. The leaders and holders of these top positions are basically in charge of a country’s activities either directly or indirectly. Indirect programs such as banking, transportation and communication are also affected by the decisions made by the elite groups. This is a clear indication that the power of any country lies within only a single elite group rather than several groups which may have different perception of leadership. Therefore, the common citizens have no authority over matters concerning their lives and this leaves their lives at risk as the elite groups do not have their interests at hand. However, this does not mean that the elite groups operate under dictatorship. Rather, they operate in respect to constitutional laws and carry out their activities in an open manner and peacefully.Advertising Looking for assessment on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More These characteristics are drawn from inheritance where leaders follow the footsteps of the previous leaders. All these rules by the power elite theory are true especially in today’s economy which has deteriorated greatly and increased the greed in elite leaders. They are gaining personal benefits at the expense of civilians who are suffering not only economically, but also politically and socially. This is because they do not have take in their lives as every activity concerning civilians is on the hands of the elite leaders who are the sole decision makers. Therefore, the elite theory is true opposed to the pluralist theory which maintains that political participation includes everyone and no single group is dominant over the others. In addition, the pluralist theory entails the agreement of groups with one goal of societal interests.