Foundations of human resource management (Case study analysis) Essay

Foundations of human resource management (Case study analysis) - Essay Example In itself, the recruitment process should be well structured and organized in order to achieve the required skillful labor. After recruitment, a systematic training approach should be employed in order to induce the new recruits in their designed positions. In Silver Creek Winery Company, there is a need for business expansion. This requires an effective recruitment procedure to fill the job positions that will arise during this development. This report will assist the manager of Silver Creek Company, Julia, to implement an effective staffing process. Foundations of human resource management Business management refers to the use of management skills to utilize the fundamental business resources in order to optimize the profit. The growth and future of a company can only be shaped by effective management strategies. Being a developing company, Silver Creek requires well schemed management strategies in order to achieve the effective expansion and to exploit its potential of growth. Th e various challenges facing this company demand for proper planning in order to come up with a prompt solution. These plans should be implemented in all the entities of this business. As the Human Resource manager, Julia carries the greater burden of the company as the future of the company lies on her shoulders. This report will assist Julia to employ Human resource planning, job analysis and training in the recruitment process in order to facilitate the staffing required during expansion of the company. Human resource planning is a crucial tool that is employed in the recruitment process. It is used in determining the current and future human resource that a particular business requires in order to achieve its set goals (Hartel & Fujimoto, 2010). It requires that the human resource requirements are established and a proper plan designed to satisfy these requirements. This goes hand in hand with the financial resource allocation for the entire process. The manager has a role to bud get for the process effectively, in order to achieve a successful output. Recruitment refers to the use of management skills to induce the right labor resource, with the right skills at the right time. This resource should just be adequate, without shortage or surplus. This is the greatest role of a human resource manager. In theory, Human resource planning can be used to design the staffing process in any organization, be it small or large (Hartel & Fujimoto). This process can be implemented in a number of stages. First, the company should assess the current human resource capacity of the business organization. At this stage, the skills and knowledge of the available employees should be established. To achieve this, academic documents should be used. For instance, the certificates are effective in establishing the area of specialization and the special skills that an employee possesses. Also, the day to day performance of the employees should be monitored in order to learn the pote ntials of all the employees. Secondly, it would be important to determine the future needs of human resource. Here, the manger focus is on the positions that are likely to arise in the future, and the skills that will be necessary. These parameters should relate to the dynamic state of the market. Then, a gap analysis should be conducted in order to estimate the difference between the position of the organization at the moment and that in the future. Finally, a restructuring plan should be

Coerced Plea Bargian Research Paper Example | Topics and Well Written Essays - 1250 words

Coerced Plea Bargian - Research Paper Example The protection of the fundamental human right is regarded very useful because it non-discriminatory and puts all people equal before the law. It is like saying that if the president of the nation deserves to live, the laborer at the presidential palace also deserves the same amount of right to live. Born out of the protection of the fundamental human rights of all people is the plea bargain that is basically concerned with giving a guilty person some room to plead for mercy. But in what ways have this right being abused? The essence of this essay is review coerced plea bargain and take a stand on it. What is Plea Bargain? According to the Encyclopedia of Everyday Law (2009), plea bargain â€Å"usually involves the defendant's pleading guilty to a lesser offense or to only one or some of the counts of a multi-count indictment in return for a lighter sentence than that possible for the graver charge†. Alschuler gives a similar definition or the term as he states that plea bargain is a situation where by â€Å"prosecutors and trail judges offer defendants concessions in exchange for their plea.† The basic idea therefore lies in the fact that in plea bargains, defendants admit their charges without or with very minimal pressure from the jury and in exchange of their ‘frankness’, receive lesser or lighter sentences. ... s; a voluntary waiver; and a factual basis to support the charges to which the defendant is pleading guilty.† If plea bargains occur under these components, we say the plea bargain is valid. Forms of Negotiating Plea Bargain For a plea bargain to be possible, there are certain legal negotiations that must go on. Koduah (2001) mentions some of these negotiations as Charge Bargaining, Sentence Bargaining and Fact Bargaining. Explaining further, the Encyclopedia of Everyday Law (2009) states that in charge bargaining, â€Å"in return for a plea of "guilty" to a lesser charge, a prosecutor will dismiss the higher or other charge(s) or counts.† This means that the defendant gets a ‘reward’ of a squashed higher charge because of admitting guilt for a smaller offense. Further on, the encyclopedia writes that with sentence bargaining, there is an â€Å"agreement to a plea of guilty (for the stated charge rather than a reduced charge) in return for a lighter sentenc e.† In this case therefore, trial goes on for the prosecution whiles the defendant hopes for a lighter sentence. Finally, fact bargaining â€Å"involves an admission to certain facts "stipulating" to the truth and existence of provable facts, thereby eliminating the need for the prosecutor to have to prove them. As in the case of all plea bargain, the defendant is given something in return, which is that there is â€Å"an agreement not to introduce certain other facts into EVIDENCE† (Encyclopedia of Everyday Law, 2009). Under what condition does a Plea Bargain become Coerced? Risinger (2007) explains that under any circumstance where plea bargain is forced on a defendant constitutes coerced plea bargain. In some cases also, attorneys of defendants do not force their defendants into negotiating for plea bargain but

Macroeconomics Of Japan Essay Example for Free

Macroeconomics Of Japan Essay Japan is the greatest economy in Asia, in terms of GDP, as well as human resources and technology. The nation was once predicted to be the next superpower nation exceeding the United Sates and countries of the European Union. Today, it is the world’s third-largest economy after the United States and People’s Republic of China. It is also the second-largest economy by real GDP and market exchange rates. The economy is highly efficient and competitive especially in the services industry, which is originated from a good cooperation between the government and the industry, a strong work ethic and the mastery of high technology. Recent analysis however, revealed that the economy is currently under serious problems. Observers and even Japan’s own officials have admitted that the economy is no longer ‘first class’. There are even worries that Japan has no longer sustain the capacity to be one of the world’s greatest economies anymore, and the economy will slowly degrade into one of the typical Asian economies. Analysts stated that such an occurrence has happened before, when Argentina which were once considered one of the strongest economies in the world degraded into typical third world economies today. Is this the case with Japan? In this paper I am discussing the problems that stayed within Japan’s economy and elaborating their probable causes. Afterwards, I will elaborate the macroeconomic policies which have been performed by the Japanese government in response to these issues and how these policies have affected the economy. The period of discussion is 1997 -2007, which are the years after the ‘Japan economic bubble’ bursts, to the present day. II. Japan Economic Issues 1997-2007 II. 1. Background of the Issues – Japan Economic Bubble Japanese growth rates have been nothing less than spectacular for decades. In the 60’s the average real economic growth rate was 10%, in the 70’s it was 5% and in the 80’s it was 4%. Japanese financial system however, was based on a bureaucratic fiat. The government believes that by injecting sufficient amount of capital into the market, the economy will experience a rapid rate of growth. Thus, the financial system was set to inject cheap capital into the business sector (Hamada, 2004). In support of this policy, banks even reluctant to report –in bad loans. In short, companies were encouraged to borrow and expand continuously. Companies would then borrow using assets like land and then invest the money into the stock market. After the market rises, the company would have latent profits which will be used to buy more land and therefore, the cycle continues. These cycles were the origins of the huge real estate and stock market bubbles. These bubbles however, cannot be sustained forever, and when the Bank of Japan (BOJ) raised interests rates, the bubble bursts in 1989 and leaving commercial banks in Japan with a mountain of bad loans. II. 2. Stagnant Economic Growth Afterwards, assets prices began to decline rapidly. Japan’s economy was going through a long period of deflation since then, partly caused by the appreciation of yen. Because of this appreciation, the CPI increase rate dropped into negative in 1995. The expanding deflation caused Japan’s economy to remain in a static condition. Moreover, the deepening deflation was accompanied with weakening state of real economy like growth rates declines and increased unemployment rates. Between 1992 and 1994, real growth rates are below 1%. It even dropped toward a negative range in 1998. Jobless rate have also suffered a rise of 3. 4 % from 2 % in 1990 to 5. 4% in 2003. The economic downsizing in 1997 put Japanese economy into a new state of deflation (Oliver, 2002). II. 3. Deflationary Trap It was not considered serious until the inflation rate slipped to below zero in 1997. In this phase, observers believed that Japan was in a ‘deflationary trap’. However, because of various long-term considerations, the government has implemented policies to maintain inflation stable near the zero mark. In this situation however, the central bank cannot use its traditional instruments to deal with the issue. As a result, deflation deepens even further and the market intensified expectations toward further and longer period of deflation. Due to the increase in real rate of interest, consumer spending and corporate investments were discouraged. Unfortunately, the shrinking total demand in the macro economy further worsen the deflation. If not dealt with accordingly, this could lead into self-sustaining deflationary process (Campbell, 1992).

Hong Kong Society and Social Stratification

Hong Kong Society and Social Stratification The Concept of Social Stratification Stratification is the geological concept of strata rock layers in natural processes. While in sociology, the concept of stratification turns to refer to the different strata of social groups and their arrangements. Social stratification is a particular form of social inequality which involves power, prestige and wealth. We can find in our lives that one group may own and enjoy more economic resources than another, or it may be held in high esteem, or it may be in a position to order other groups around. The study of social stratification is to explore how is the hierarchy formed within the society, how are social resources unequally distributed and how these different groups relate to one another. Obviously, the arrangement of different social groups within a society is not really like the arrangements of rock in the earths crust as there are frequent and various interactions between the higher and lower social groups. Moreover, contrary to solid rock layers, rises and falls take place both by group and by individuals in social system. One group may rise in power and status while another group may fall. Individuals also move up and down to change their group belongings. So when we study social stratification, we should pay attention to its characteristic of interaction and mobility. Any neglect would lead to a false conclusion. Theories of Social Stratification Social stratification is not a new born concept. Long ago in ancient China, Li was considered a special subject on institutions and manners which gave a strict division and rules of social classes. In Han Shu-Monograph on Food and Currency , people were stratified in a descending order of scholars, peasants, workers and businessmen. In the west, the earliest discussion on social stratification can be dated back to ancient Greece. Plato illustrated an ideal state in Republic with three stable classes of freemen-Rulers or Philosopher Kings, Warriors or Guardians, and Workers, while Aristotle argued with an idea of the rich, the poor and the middle. When talking about social stratification, we can always find these two names: Karl Marx and Max Weber. The classic statements on both social class and stratification provide the foundation from which we can fully appreciate current social dynamics and new directions in the study of social inequality. The Marxist Perspective Karl Marx was born in the aftermath of the European Revolution. By witnessing the end of the old era and the emergence of a new age, he found a similarity in all societies-the ever existence of two social classes. He inherited Hegels account of the conflict between master and slave, then took the idea of two opposed forces to analyze the form of the conflict. Marx was the first to develop a systematic theory on social class. A class is a social group whose members share the same relationship to the means of production. Individuals in a class not only act in much the same way but also tend to think in much the same way. There are two major social groups in all societies, a ruling one and a subject one. The relationship between the two major classes is conflict-exploiter and exploited, oppressor and oppressed. Marx conceived the society as a system of production based on the existence of these two opposite social classes. The ruling class (the bourgeoisie) own the means of production (land, capital, labour power, buildings and machinery) while subject class (the proletariat) has no choice but to work for the capitalists. Wage labourers produce goods and services but get only subsisted rewards. Employers take the products away to sell them at a value greater than their cost of production. By accumulating this surplus value, capitalists get m ore wealth and means of production to sustain the system. Capital is a social power. Political power comes from economic power, from the control of means of production. The ruling class build up the superstructure of society-the major institutions, values and belief systems, according to the common interests of the group. They seek protection for their ownership of means of production through laws and mechanisms which are favorable to them. In addition, a distorted picture of reality (ideology) was invented to justify and legitimate the domination of the ruling class and to inculcate the mass oppressed working class a false consciousness of the nature of relationship between social classes. Marx pointed out that there is a polarization of the classes through which the society would more and more split into the two great hostile camps. Although he did not deny the individual mobility between the social groups, the possibility is little because each group is relatively closed. Individual movement up and down does nothing to change the system. Only by thorough revolutions can social orders be reconstructed, can means of production be used by everyone and can social equality be achieved. Despite the great contribution to the study of social stratification, people raised problems in Marxist approach as listed below: Not all societies are class societies Class may not be the most basic social division The rise of the middle class and the fragmentary class structure Working class consciousness and intellectual wishful thinking To solve these problems, Neo Marxist scholars have made many efforts. Succeeding Marxs basic view of social stratification, the primary concern of modern Marxian theorists has been to apply this Marxian view of society to industrial societies that have experienced change since Marxs time, while also using new methods of social science research to validate some of the principal Marxian concepts. For instance, Gramsci accused dehumanizing aspects of modern capitalism and advocated more education on working class to develop intellectuals among them. Poulantzas thought the fragmentation of class structure was a defining characteristic of late capitalism, so any analysis must tackle the new constellation of interests and power. Structural Marxist, Wright, did some empirical research on social stratification. Inspired by others works, he borrowed the concept of skills and defined class in relation to the productive system: Capitalists, managers, workers and the petty bourgeoisie. The Weberian Alternative Max Weber contributed the most to development of stratification theory since Marx. He was said to have had a dialogue with Marx but got different conclusions. Marx saw classes in economic terms, while man does not strive for power only in order to enrich himself economically. He expanded Marxs standard of class division to a multidimensional view. People forming the same class roughly share common life chances which are reflected into class situation. In Webers point of view, ownership of property will directly give an individual more life chances in market, however, the skills and education the individual has had is also playing an important role in defining social classes. Under this assumption, Weber was able to explain the emergence of middle class while Marxism failed to do so. He identified as social class according to the economic rewards in labour market- the working class as a whole, the petty bourgeoisie, technicians, specialists and lower-level management and the classes privileged through property and education. Moreover, social stratification is not only decided by class(economic rewards), status is another significant perspective. Whereas class refers to the unequal distribution of economic rewards, status refers to the unequal distribution of social honor, which refers to how a person or a group is regarded by others. Individuals from a similar status group are likely to share similar status situation including lifestyle, sense of belonging and restriction on interaction with outsiders etc. This dimension managed to solve the doubt about the role of gender, ethnicity and religion in stratification theory. The last dimension in Webers three-component theory of stratification is party or power. To achieve whatever goals, people form organizations in rational orders to influence and dominate others. The most typical organizations of this kind are political parties and bureaucratic institutions. Where is one stand and how is one placed within the organization decide ones position in this dimension of stratification. Weber concluded that the three dimensions of hierarchies lead to the ranking of individual and group in human society. Nevertheless, the importance of each dimension differs in different societies. Webers theory of social stratification has relativity and mobility, which enlightened his successors like Anthony Giddens, Frank Parkin and John Goldthorpe, etc., to continue promoting the development of multidimensional theory of stratification. The Former Study on Hong Kong s Social Stratification Boggs, C. (1984). The two revolutions : Antonio Gramsci and the dilemmas of western Marxism (1st ed.). Boston, MA: South End Press. Crompton, R. (1993). Class and stratification : an introduction to current debates. Cambridge, UK ; Cambridge, MA, USA: Polity Press. Haralambos, M., Holborn, M. (2008). Sociology : themes and perspectives (7 ed.). London: HarperCollins Publishers. Hess, A. (2001). Concepts of social stratification : European and American models. Houndmills, Basingstoke, Hampshire ; New York: Palgrave. Kerbo, H. R. (1996). Social stratification and inequality : class conflict in historical and comparative perspective (3rd ed.). New York: McGraw-Hill. Levine, R. F. (1998). Social class and stratification : classic statements and theoretical debates. Lanham: Rowman Littlefield Publishers. Li, P. (2004). Social stratification in Chinas today(Zhongguo she hui fen ceng) (1 ed.). Beijing: She hui ke xue wen xian chu ban she. Li, X. (2008). Dream and reality : stratification and social mobility in Hong Kong(Meng Xiang Yu Xian SHI: Xiang Gang De She Hui Fen Ceng Yu She Hui Liu Dong) ( 1 ed.). Beijing: Publisher of Peking University. Marx, K., Engels, F. (1888). Manifesto of the Communist party ([5th ed.). London,: W. Reeves. Poulantzas, N. A. (1982). Political power and social classes. London: Verso. Saunders, P. (1990). Social class and stratification. London: Routledge. Weber, M., Gerth, H. H., Mills, C. W. (2009). From Max Weber : essays in sociology. Milton Park, Abingdon, Oxon ; New York: Routledge. Wright, E. O. (1997). Class counts : comparative studies in class analysis. Cambridge ; New York Paris: Cambridge University Press ;Maison des sciences de lhomme.

Andina Bottling Company Case Essay -- Business Cola Products Latin Ame

Andina Bottling Company Case Andina is a major distributor of Coca-Cola products in Latin America. The market for soft drinks is very competitive in Latin America. The dominate brands are not necessarily Coca-Cola or Pepsi brands. For a company to succeed in the distribution and manufacturing of soft drinks in Latin America, they need to be efficient. The plants need to work at capacity or close to it. The distribution also has to be logical. It is not worth it for them to sell to less populated mountain areas. The point of the new system that Andina is introducing is going to make sales, distribution, and manufacturing easier. The three countries are going to share their information with each other. Control panel and the rest of the system will be successful if Andina can convince each country that they can trust it. Andina is doing a good job of trying to unite the three subsidiaries through Control Panel. For Andina to succeed in the bottled drinks manufacturing and distribution business, they need to be the most efficient that they can be. There are many bottled drinks in Latin America. There are many knock-offs of Coca-Cola as well. Andina is facing a lot of competition. They need to make sure that they are selling to a larger audience and not to a smaller one. There is no point in concentrating a large amount of your sales force on a mountain area or one that is spread out over some distance unless there is a large population that the drink is marketed to. If the mountain region makes up less than 5% of the company’s sales, they should try to focus on a more populated area with more of a target market. In the case, it talks about how this happened in Argentina. They had 25,000 clients that accounted for only 3% of their sales, (10). The distribution costs were incredibly high on these customers. The smaller clients were raising their distribution costs because deliverin g a case here and a case there adds up. When it comes to manufacturing, the company needs to make sure that they have enough outputs for the demand. Also the sales force needs to target the correct market. If the sales force focuses on a market with low consumption, their sales are not going to be as good as a market with high consumption. With the implementation of the new system and control panel, Andina is trying to bring their company together. T... ...elped solve. In order for Control Panel to work fully, Andina corporate needs to convince their Brazilian subsidiary that the Control Panel is here to help not hurt them. Also it seems like a case of the managers being afraid of losing their jobs to other managers such as one from Chile. The corporate headquarters needs to reassure them that Control Panel is not a way to fire the employee but there to help them do their job more effectively and efficiently. Maybe a training session with the employees could help boast their confidence in the system. For the managers in Brazil, they could hold like a managers retreat and inform them of how useful the whole system and it components are. They could also try to reassure them that they will not be losing their jobs because of the implementation of the new system. Andina is making a very good effort to combine their company. They seem to be willing to work with each subsidiary to try and make the manufacturing and distribution processes easier. They need to continue to take the path they are currently on. They also need to keep reassuring their subsidiaries that this new system and all it components are there to help not destroy.

Key Events in the Civil Rights Movement Essay -- Civil Rights Equality

The Civil Rights Movement started with The Montgomery Bus Boycott. The Boycott officially started on December 1, 1955. Rosa Parks was an Educated women and she attended the laboratory school at Alabama State College. Even with that kind of education she decided to become a seamstress because of the fact that she could not find a job to suit her skills. Rosa Parks was arrested December 1955. Rosa Parks Entered a bus with three other blacks and sat on the fifth row. The fifth row was the first row the black could occupy. After a few stops later the rows in front of them where filled with whites. According to the law at the time blacks and whites could not occupy the same row. There had been one white man left with out a seat. The bus driver had told the four to move so the white man had a place to sit. The other three that was with Rosa Parks had moved. Rosa Parks however did not. She refused and was arrested. E.D. Nixon post bond for Rosa Parks. He told her that with her permission they could break segregation from buses with her case. Jo Ann Robinson made flyers and distributed them with her students. The flyers urged people to stay off the buses on Monday the day Rosa Parks case was due. Martin Luther King, Jr. a minister thought that if they could 60 percent of the blacks to stay off the buses the boycott would be a success. Martin Luther King Jr. thought he saw a miracle when he saw bus after bus pass his house with no blacks in them. That night they had called a meeting him and other ministers and blacks of the community which they called there self (MIA) Montgomery Improvement Association. They elected King the president of the group. They had a decision to make whether or not to continue with boycott or not. Then E.D. Nixon rose to speak: ?What's the matter with you people? Here you have been living off the sweat of these washerwomen all these years and you have never done anything for them. Now you have a chance to pay them back, and you're too damn scared to stand on your feet and be counted! The time has come when you men is going to have to learn to be grown men or scared boys.? The MIA had then decided to let the people vote on whether or not to let the boycott continue or not. They held a mass meeting and it was obvious to see that they decided to continue with the boycott. When the boycott began no one had expected for it to ... ...a return to Montgomery, where the civil rights movement had started ten years earlier with the Montgomery Bus Boycott. A few months later, blacks had reason to rejoice again. It was truly a day for celebration. On August 6, 1965, President Johnson signed the Voting Rights Act into law. By 1969, 61% of voting-age blacks in America were registered to vote, compared to 23% in 1964. The Selma to Montgomery march clearly showed both how far American blacks had come and how far they still had to go. Ten years ago blacks could barley do anything and now they are equally treated how they are suppose to be. During the movement mainly great people died. The sacrifices they made help make America what it is today. The movement was from 1955-1965, those years where some of the hardest years for America. We overcome our differences and now everyone is equal. This report was based on The Civil Rights Movement. Websites http://www.mecca.org/~crights/cyber.html http://www.cr.nps.gov/nr/travel/civilrights/ http://www.infoplease.com/spot/civilrightstimeline1.html Books Voices of Freedom: An Oral History of the Civil Rights Movement The Origins of the Civil Rights Movement

Scope of Managerial Economics Essay

Economics has two major branches namely Microeconomics and Macroeconomics and both are applied to business analysis and decision-making directly or indirectly. Managerial economics comprises all those economic concepts, theories, and tools of analysis which can be used to analyze the business environment and to find solutions to practical business problems. In other words, managerial economics is applied economics The areas of business issues to which economic theories can be applied may be broadly divided into the following two categories: †¢Operational or Internal issues; and †¢ Environmental or External issues Micro Economics Applied to Operational Issues Operational problems are of internal nature. They arise within the business organization and fall within the perview and control of the management. Some of the important ones are: †¢ Choice of business and nature of product, i.e., what to produce; †¢ Choice of the size of the firm, i.e., how much to produce; †¢ Choice of technology, i.e., choosing the factor combination; †¢ Choice of price, i.e. ,how to price the commodity; †¢ How to promote sales, i.e., sales promotion measures; †¢ How to face price competition; †¢ How to decide on new investment; †¢ How to manage profit and capital; †¢ How to manage inventory, i.e., stock of both finished goods and raw material The above mentioned issues fall within the ambit of micro economics; therefore, the following constitute the scope of managerial economics: Theory of demand †¢ Consumer behaviour- maximization of satisfaction †¢ Utility analysis †¢ Indifference curve analysis †¢ Demand analysis and elasticity of demand †¢ Demand forecasting and its techniques/methods Theory of production and production decisions †¢ Production function [Inputs and output relationship] in short-run and long-run †¢ Cost and output relationship in short-run and long-run †¢ Economies and diseconomies of scale 7 †¢ Optimum size of firm and determining the size of firm. †¢ Deployment of resources [labour and capital] for having optimum combination of factors of production. Analysis of market structure and pricing theory †¢ Determination of price under different market conditions †¢ Price discrimination †¢ Multiple pricing policy †¢ Advertising in competitive markets †¢ Different pricing policies and practices Profit analysis and profit management †¢ Nature and types of profit †¢ Profit planning and policies †¢ Different theories of profit Theory of capital and investment decisions †¢ Cost of capital and return on capital-choice of investment projects †¢ Assessing the efficiency of capital †¢ Most efficient allocation of capital †¢ Capital budgeting Macro Economics Applied to Business Environment Environmental issues relate to general environment in which business operates. They are related to overall economic, social and political environment of the country. The following are the main ingredients of economic environment of a country : †¢ The type of economic system- capitalist, socialist or mixed economic system. †¢ General trends in production, employment, income, prices, saving and investment. †¢ Volume, composition and direction of foreign trade. †¢ Structure of and trends in the working of financial institutions- Banks, NBFCs, insurance companies an other financial institutions. †¢ Trends in labour and capital market. †¢ Economic policies of the government- Fiscal policy, Monetary policy, EXIM- policy, Industrial policy, Price policy etc. †¢ Social factors- value system, property rights, customs and habits. †¢ Social organizations- Trade unions, consumer unions and consumer co-operatives and producers unions. †¢ Political environment is constituted of the following factors: †¢ Political system-democratic, socialist, communist, authoritarian or any other type. †¢ State’s attitude towards private sector †¢ Policy, role and working of public sector †¢ Political stability. †¢ The degree of openness of the economy and the influence of MNCs on domestic markets- Integrations of nation’s economy with rest of the world (Policy of globalization) 8 The environmental factors have a far reaching influence on the functioning and performance of firm/s. Therefore, business managers have to consider the changing economic, social and political environment before taking any decision. Managerial economics is however, concerned with only the economic environment and in particular with those which form the business climate. The study of social and political factors falls out of the perview of managerial economics. It should, however, be borne in mind that economic, social and political factors are inter-dependent and interactive. The environmental issues mentioned above fall within fourwalls of macro economics, therefore the following constitute the scope of managerial economics: Issues related to Macro Variables †¢ General trends in economic activities of the country †¢ Investment climate †¢ Trends in output †¢ Trends in price – level (state of inflation) †¢ Consumption level and its pattern †¢ Profitability in business expansion Issues related to Foreign Trade †¢ Trade relation with other countries †¢ Sector and firms dealing in exports and imports †¢ Exchange rate fluctuations †¢ Inflow and outflow of capital †¢ Trends in international trade- volume, composition, and direction †¢ Trends in international prices of various goods and services †¢ International monetary mechanism †¢ Rules, regulations and policies of WTO Issues related to Government Policies †¢ Regulation and control of economic activities of private sector business enterprises †¢ Enforcing the government rules and regulations for imposing of social responsibility †¢ Striking balance between firm’s objective of profit maximization and society’s interest †¢ Policy and regulatory measure for reducing social costs in terms of environmental pollution, congestion and slums in cities, basic amenities of life such as means of transportation and communication, water, electricity supply etc.