Free-market Capitalism means that businesses are able to sell their product at whatever price they feel the market can sustain, allowing customers to buy products at a price they are willing to accept. The key to this market is price fluctuation; where pricing goes up or down to reflect supply and demand. The healthiest markets are those in which there are many producers competing for business and many consumers competing for the available products. This type of market minimizes the involvement of government, lessening regulations, unions, and trade barriers, allowing the businesses and the customers to decide which business will be successful. This in turn creates more jobs and competition (TheFreeDictionary, 2009).
Creative capitalism is centered around companies’ spending money on projects that are seen as socially desirable. To Bill Gates (2008), it is "market-based social change [that adds up to] doing work that eases the world's inequities “(Gates, 2008). This constitutes companies supporting causes that are important to the customers in their neighborhoods. Many companies are jumping on aboard what some are calling the RED campaign, which started as a fight to end AIDS in Africa but has now expanded to a worldwide fight to end AIDS and to have an AIDS free generation. While this is just one of many community campaigns, the result of the community work done by companies has some economic advantages to the business.
Some corporations have identified brand-new markets among the poor. The use of tier pricing has allowed them to provide life-changing technologies at cost, while increasing the cost to those who can afford to pay more. For example, Vodafone bought a stake in Kenyan Cell Phone Company, thinking that the m...
... middle of paper ...
...eally is a positive force for change, and as such it becomes beneficial to engage in these positive activities to increase employee dedication and loyalty. Ultimately, it is easier to hire and retain employees when they feel invested in the company’s goals (Gates, 2008).
It is on this note that it would be wise to consider what the implications are for companies that engage in such Creative capitalism with regards to their performance, employees, and profitability. Not all employees are equally dedication to company goals and this is a positive way to gain their support. Profitability can be gained through the use of creative capitalism, finding a niche and exploring it to the benefit of all involved. The increase of performance and exposure does not necessarily obviate the need to advertise and build the brand, it would be a tool to use during these campaigns.
The free-market economy is based on supply and demand. The idea is that products will be manufactured and sold at adjusted levels such that a fair market price is maintained. In other words the selling price of an item will vary based on the demand and supply of that item, adjusting as economic conditions change. Advertising has a large effect on how the free-market functions. Alan Goldman, in an excerpt from Just Business (1983, found in Honest work by Ciulla, Martin and Solomon), justifies advertising in the free-market economy using four main arguments, that “it is consistent in a free- market economy”, ”it is not wasteful of economic resources”, “it provides certain indirect social benefits”, and it is “a valuable source of information” (Goldman, 1983, p.301). Goldman claims that for each one of these reasons there is a necessary and immediate need for advertising if our market economy is going to function properly and we will discuss his arguments below.
Overall, free market is a necessity if there is to be any forward movement and progression of society. In a controlled system nothing ever changes, and while this can prevent change for the worse, it also stunts change for the better. In free enterprise systems, people with brains and determination, such as Andrew Carnegie, are able to take advantage of new opportunities. While this system will not help individuals float along, and they are liable to sink (into debt and/or remorse), those who have the courage to try will find that success is only a risk
A considerable viewpoint for answering these questions has been presented by Professor Dwight R. Lee, in his article "Market and Freedom". This article is an attempt of providing some visions to protect the values of free market economy.
Markets that are driven by supply and demand are considered to be free. To be under the influence of supply and demand, government must not intervene. After the industrial revolution, business owners stressed this idea. Adam Smith developed the ideas behind supply and demand.
One of the most common major types of economic systems in the world today is capitalism. In its simplest terms, capitalism can be defined as an economic system in which a country’s trade and industry are run by private organizations for profit. So within capitalism major industries such as manufacturing, energy, banks, transportation, medicine and more are not run by the government. The earliest forms of capitalism can be traced to the 17th century English Puritans who possessed a strong work ethic that focused an importance on productive labor. Modern capitalism is said to have started in the mid-18th century with the birth of factories. Factory owners were able to maximize wealth by making goods that were in-demand and also by streamlining labor. For capitalism to work. supply and demand is typically unregulated by government. It is based on the f...
A market economy that fails, to address the needs of at-risk children and adults. Currie feels Americans are so focused on the economy that there is no regulation, Americans also believe, it is a free market, and that individuals are responsible for their own failures or success. This type of economy is a system in which economic resolution and pricing of goods and services are determined and focused entirely by the aggregate of country’s citizens and business with little government intervening or central planning. This means private firms account for all production. Meaning consumers decide what should be produced, based off of what they have purchased.
...edback made the employees feel that their work was meaningful and that it impacted the lives of their clients. Staying true to its moral organizational goal, Edward Jones witnessed consistently high satisfaction from internal and external customers while it adhered to its key values and ultimately, produced an extremely high employee work motivation.
In today’s increasingly competitive marketplace businesses must be very creative in their marketing strategies in order to attract as much business possible. Companies spend a tremendous amount of their budget on advertising, soliciting, marketing and selling their products and / or services. Businesses that aren’t creative don’t appear to succeed as much as those that produce good marketing campaigns.
The free market is the only economic system consistent with personal freedom. It thus not only provides the basis for the greatest improvement in living standards, it also provides the basis for remaining
Capitalism is an economic system where people and private businesses are able to control their own trade and means of production for profit. It emerged as technology, production and trade began to increase. During the industrial revolution, capitalism started to influence people more. Some characteristics of capitalism are capital accumulation, competitive markets and wage labor. The government isn’t supposed to interfere with trade. Individual markets raise or lower their prices due to competition and demand for goods. There has been a lot of debate over the usefulness of capitalism. Some believed capitalism had negative effects while others saw more benefits. Adam Smith and Andrew Carnegie pushed for a capitalistic society, but had different beliefs on how economic wealth should be distributed; Karl Marx advocated for a communistic society where wealth was evenly distributed.
By having an economic system that rewards merit rather than mediocrity, capitalism stimulates the market as well as individuals to progress, thus improving the overall welfare of society. In a capitalist society, it is the people that produce that get rewarded. Entrepreneurs or companies that come up with a new product, give people a service they want, or entertain them better than elsewhere will be paid generously for it. Because of this free market, it gives people incentives to work hard, innovate, and invest - all for a profit. This self organization of the economy creates more prosperity not only for people behind the idea, but also for peopl...
Robson, K., Pitt, K., and Wallstrom, A (2013) 'Creative Market Segmentation: Understanding The Bugs In Consumer Behavior', Journal of Public Affairs, 13(2), pp. 218-233 [Online]. Available at: www.swinburnedb.librarynet.com.my (Accessed: 17 May 2014).
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves. The market forces in a capitalist country runs by supply and demand which it determines the price and later on it turns into profits. Supply is the quantity of goods and services a business is willing to sell, while Demand is the quantity of goods and services consumers are willing to buy. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.
Reed, B. (2011). The Business of Social Responsibility. Retrieved from Dollars and Sense Real World Economics: http://www.dollarsandsense.org/archives/1998/0598reed.html