Tag: Growth

  • Big Steps To Help Grow Your Commercial Business

    Big Steps To Help Grow Your Commercial Business

    Grow your commercial business with strategies tailored to your objectives & goals. Explore new markets, invest in marketing, and engage with customers to achieve success!

    Explain the Big Steps To Help Grow Your Commercial Business

    Expanding the growth and success of a commercial business requires careful planning and strategic decision-making, learn more. To make significant strides towards expansion, businesses can consider the following approaches:

    1. Set Clear Goals and Strategies

    Establishing clear goals and defining strategies is paramount to business growth. By setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives, businesses can effectively steer their expansion efforts. These goals can include increasing market share, improving sales figures, or diversifying product offerings.

    2. Enhance Marketing and Branding Efforts

    A robust marketing and branding strategy can propel a business toward growth. Investing in targeted advertising, utilizing digital marketing channels, and actively engaging with customers through social media platforms can help increase brand visibility and attract new customers.

    3. Expand into New Markets

    Exploring new markets can provide businesses with fresh growth opportunities. Conducting market research to identify untapped demographics, conducting competitor analysis, and adapting products or services to meet specific market needs are crucial steps in expanding into new territories.

    4. Develop Strategic Partnerships

    Collaborating with strategic partners can offer mutually beneficial growth opportunities. By forming alliances with complementary businesses or industry leaders, companies can leverage shared resources, expertise, and customer bases to expand their reach and gain a competitive edge.

    5. Invest in Technology and Innovation

    Embracing technological advancements and fostering a culture of innovation is vital for sustained growth. Adopting new technologies, automating processes, and continuously improving products or services can help businesses stay ahead of the curve and attract new customers.

    6. Emphasize Employee Development and Engagement

    Nurturing a talented and engaged workforce is integral to long-term success. Providing ongoing training and development opportunities, fostering a positive work culture, and incentivizing employee performance can lead to enhanced productivity, innovation, and customer satisfaction.

    7. Leverage Commercial Finance Brokerage

    Commercial finance brokerage plays a crucial role in securing the necessary capital to fund expansion initiatives. These brokers specialize in connecting businesses with lenders who can provide the required loans or financing options for various business needs, such as company acquisitions, read here. Working with a reputable commercial finance broker can help businesses navigate complex financial processes, increase their chances of loan approval, and ensure they have the necessary financial resources to make significant strides in their growth journey and information on unsecured loans.

    Remember, every business is unique, so it’s crucial to evaluate. Which strategies align best with your specific industry, market conditions, and long-term objectives? With careful planning, determination, and the right financial support. Businesses can take big steps toward expanding their growth and achieving sustained success.

  • How is Digital Marketing Useful in Business Growth?

    How is Digital Marketing Useful in Business Growth?

    Digital Marketing; Are you worried about the success of your online business? Do you want to increase online visibility? If you want to see growth in the business, then you need to follow a strong digital marketing strategy. A good strategy is based on lots of things such as PPC, SEO Melbourne, and so on. In this article, you can figure out some details about digital marketing. With it, you will get aware of its importance in business growth. 

    What is Digital Marketing?

    Digital marketing is an advanced method of marketing that can use in the internet world. Also, It is completely based on digital devices like smartphones, computers, laptops, and all other digital technologies. The use of online marketing tactics provides a completely new and different approach. Also, Mainly it works by focusing on the behavior of customers. 

    Major Digital Marketing Elements; 

    Mainly these elements will help you in understanding the approach of e-marketing. These approaches divide into two categories such as: 

    Results, practices, and procedures of both types of approaches are completely different. Also, These marketing channels are useful in getting connected with the target audience and potential customers quickly. Here, you can get some more information. 

    Inbound Marketing;

    The following inbound marketing explanation below are;

    Search Engine Optimisation:

    SEO (search engine optimization) is useful in improving a website’s ranking. Also, It becomes possible with the help of content optimization and some unique SEO techniques. To optimize the content, there are some keywords used by the experts. With all these things, the experts need to focus on the search engine algorithms for achieving the desired ranking. You should avail the of quality Seo services in Melbourne by hiring the best company and starting a good marketing plan. 

    Lead Generation or Content Marketing:

    Lead Generation is the most important step of digital marketing. With the content marketing strategies, it can complete perfectly and effectively. Here, the website owners should try to add some blogs or articles to the website. To get maximum benefits, you should pick topics carefully. It should be relevant to your services and the information should fulfill the visitor’s requirements. 

    Social Media Marketing:

    Social Media Marketing appears as the best source of marketing and promotions for both B2B & B2C. Also, It helps in increasing lead generation, brand popularity, referrals, and sales. All these outcomes are also leading to a good impact on the SEO results. 

    Email Marketing:

    For the implementation of an automated marketing strategy or campaign, email marketing considers the best option. It can be effective with the addition of newsletter subscriptions on the website. Also, Visitors who subscribe to your newsletter can easily get your updates via emails. 

    Direct Advertising;

    The following direct advertising explanation below are;

    Search Advertising:

    By using the search ads, you can place the advertisements at the top of search results. By using Google AdWords, you can create PPC ads campaigns and run them as per your budget. 

    Remarketing:

    With the help of remarketing advertisements, you can get the best possible results. Here, the visitors who visit your website and leave without a conversion target. 

    Display Advertising:

    Display advertising features are useful in running ads campaigns that are based on visual media such as – banners and videos. Also, Mainly these types of ads are published on blogs and websites. 

    With these approaches, you can reach the audience. If you worry about tracking conversions and visitors, then there are some tools available like – Google Analytics

    How is Digital Marketing Good For Business Growth?

    The following business growth idea explanation below is for Digital Marketing;

    Higher Conversion Rates;

    All online business owners worry about the conversion rate. Everyone wants to get conversions at higher rates by which they can reduce overall costing and earn lots of profit. With the help of digital marketing techniques, it can be easier. For it, a Seo expert Melbourne uses the best strategy for generating lots of leads. With the help of an engaging and user-friendly website, leads can easily convert. To get such results, you need the best internet marketing strategy

    Money Saver Option; 

    When it comes to marketing, the companies are spending lots of money and time by following the traditional methods. In the case of this modern and advanced approach, they can save lots of money and time as well. These marketing techniques easily replace the yellow pages, television, and radio advertisement channels and provide better results. Another major benefit is, you never miss the key moment with it. Also, You can schedule your task in advance with all required elements. As a result, it will hit your target on time and you do not lose anything. 

    Higher Return On Investment Rate; 

    In a business ROI is the biggest element. Everyone needs to maintain it balanced and see consistency in growth. It affects by the revenues or sales. Also, Marketing helps in getting more customers and generating more income. In the case of online businesses, this can be done with digital marketing services. Another thing is it provides much better and effective results as compared to the traditional marketing methods. 

    Beat Your Competitors; 

    Competition is the biggest hurdle in business success and growth. Due to the competitors, you may not be able to reach a complete audience base. Also, Digital marketing helps make sure that you can beat the competitors and get a wider base of customers. It also makes the task of targeting the audience easier. 

    Get Audience’s Trust; 

    Trust plays a crucial role. In case you do not earn the trust of your audience, then you cannot lead to conversions. It leads to huge losses and may create a negative business reputation. The digital marketing approach can help you in avoiding such bad results. It will help you in gaining the public’s trust and dealing with them by offering services easily. Favorable outcomes are also useful in creating a separate brand identity among competitors. 

    Build Brand Reputation; 

    To impress the audience and achieve business goals, you should have a good reputation in the market. Good Seo Melbourne practices will help you in building your reputation among the public. Along with search engine optimization, the use of social media platforms assures results.

    How is Digital Marketing Useful in Business Growth Image
    How is Digital Marketing Useful in Business Growth?
  • Indian Capital Market: Understand their concept by Nature, Classification, Growth, and Development!

    Indian Capital Market: Understand their concept by Nature, Classification, Growth, and Development!

    What does the Capital Market mean? The capital market is a market which deals in long-term loans. It supplies industry with fixed and working capital and finances medium-term and long-term borrowings of the central, state and local governments. The Capital Market functions through the stock exchange market. A stock exchange is a market which facilitates buying and selling of shares, stocks, bonds, securities, and debentures. The capital market deals in ordinary stock are shares and debentures of corporations, and bonds and securities of governments. So, what is the topic we are going to discuss; Indian Capital Market: Understand their concept by Nature, Classification, Growth, and Development!

    Here are explained; Indian Capital Market: The Concept of Market understand by their Nature, Classification, Growth, and Development!

    The capital market plays an important role in immobilizing saving and channel is in them into productive investments for the development of commerce and industry. It is not only a market for old securities and shares but also for new issues shares and securities. In fact, the capital market is related to the supply and demand for new capital, and the stock exchange facilitates such transactions.

    Thus the capital market comprises the complex of institutions and mechanisms through which medium-term funds and long­-term funds are pooled and made available to individuals, business and governments. It also encompasses the process by which securities already outstanding are transferred.

    Nature of Indian Capital Market:

    Like the money market, capital market in In­dia is dichotomized into organized and unor­ganised components. The institution of the stock exchange is an im­portant component of the capital market through which both new issues of securities are made and old issues of securities are pur­chased and sold. The former is called the “new issues market” and the latter is the “old issues market”. The stock exchange is, thus, a specialist market place to facilitate the exchanges of old securities. It is known as a “secondary market” for securities.

    The stock exchange dealings for “listed” securities are made in an open auction market where buyers and sellers from all over the country meet. There is a well-defined code of bye-laws according to which these dealings take place and complete publicity is given to every transaction. As far as the primary mar­ket or new issues market is concerned, it is the public limited companies instead of a stock market that deals in “old issues” that raises funds through the issuance of shares, bonds, debentures, etc. However, to conduct this busi­ness, the services of specialized institutions like underwriters and stockbrokers, merchant banks are required.

    The capital market in India is divided into the gilt-edged market and the industrial securities market. The gilt-edged market refers to the market for Govt. and semi-govt. securities. The industrial securities market refers to the market for equities and deben­tures of companies.

    The industrial securities mar­ket is further divided into:

    • New issues market, and.
    • Old capital market.

    Both markets are equally important but often the new issue market is much more important from the point of economic growth. Economic liberalization provides a strong stimulus to the security market. There is a tremen­dous growth in the number of issues, the amount raised, listed companies, listed stock, market turno­ver, and capitalization etc. Security market wit­nessed steep rising curve in the decades of 80s.

    Many new financial instruments were introduced; new institutions like Stock Holding Corporation of India Ltd, National Stock Exchange, Over the Coun­ter Exchange of India Ltd. etc. were created. Further, various steps were taken to protect the interests of investors and streamlining the trading mechanism. Computerization is done for faster set­tlement of transactions. Screen-based trading pro­vides the full transparency of the transactions. After the abolition of the managing agency system in 1970, the importance of the capital market in India cannot be overemphasized.

    The Indian capi­tal market has now been a very vibrant and grow­ing market. It is one of the leading capital markets in developing countries. We have the second largest number of listed companies (6500) in the world, next only to the USA have the largest number of exchanges in any country—23 Stock Exchanges. We have 15 million investors. And in the decade of 80s, the amount raised from the Indian capital mar­ket went up from Rs. 200 crores a year to Rs. 10,000 crores a year.

    The Indian capital market is the market for long term loanable funds as distinct from money market which deals in short-term funds. It refers to the facilities and institutional arrangements for borrowing and lending “term funds”, medium term, and long term funds. In principal capital market loans are used by industries mainly for fixed investment. It does not deal in capital goods but is concerned with raising money capital or purpose of investment.

    The Classification of Indian Capital Market:

    The capital market in India includes the following institutions;

    • Commercial Banks.
    • Insurance Companies (LIC and GIC).
    • Specialized financial institutions like IFCI, IDBI, ICICI, SIDCS, SFCS, UTI etc.
    • Provident Fund Societies.
    • Merchant Banking Agencies, and.
    • Credit Guarantee Corporations.

    Individuals who invest directly on their own insecurities are also suppliers of the fund to the capital market. Thus, like all the markets the capital market is also composed of those who demand funds (borrowers) and those who supply funds (lenders). An ideal capital market attempts to provide adequate capital at a reasonable rate of return for any business, or industrial proposition which offers a prospective high yield to make borrowing worthwhile.

    The Indian capital market is divided into the gilt-edged market and the industrial securities market. The gilt-edged market refers to the market for government and semi-government securities, backed by the RBI. The securities traded in this market are stable in value and are much sought after by banks and other institutions. The industrial securities market refers to the market for shares and debentures of old and new companies. This market is further divided into the new issues market and old capital market meaning the stock exchange.

    The new issue market refers to the raising of new capital in the form of shares and debentures, whereas the old capital market deals with securities already issued by companies. The capital market is also divided between the primary capital market and secondary capital market. The primary market refers to the new issue market, which relates to the issue of shares, preference shares, and debentures of non-government public limited companies and also to the realizing of fresh capital by government companies, and the issue of public sector bonds.

    The secondary market, on the other hand, is the market for old and already issued securities. The secondary capital market is composed of industrial security market or the stock exchange in which industrial securities are bought and sold and the gilt-edged market in which the government and semi-government securities are traded.

    The Growth of the Indian Capital Market:

    The following growth below are;

    Before Independence of Indian Capital Market:

    Indian capital market was hardly existent in the pre-independence times. Agriculture was the mainstay of the economy but there was hardly any long term lending to the agricultural sector. Similarly, the growth of industrial securities market was very much hampered since there were very few companies and the number of securities traded in the stock exchanges was even smaller.

    Indian capital market was dominated by the gilt-edged market for government and semi-government securities. Individual investors were very few in numbers and that too was limited to the affluent classes in the urban and rural areas. Last but not least, there were no specialized intermediaries and agencies to mobilize the savings of the public and channelize them to invest.

    After Independence of Indian Capital Market:

    Since independence, the Indian capital market has made widespread growth in all the areas as reflected by the increased volume of savings and investments. In 1951, the number of joint stock companies (which is a very important indicator of the growth of capital market) was 28,500 both public limited and private limited companies with a paid up capital of Rs. 775 crore, which in 1990 stood at 50,000 companies with a paid up capital of Rs. 20,000 crore. The rate of growth of investment has been phenomenal in recent years, in keeping with the accelerated tempo of development of the Indian economy under the impetus of the five-year plans.

    Indian Capital Market Understand their concept by Nature Classification Growth and Development
    Indian Capital Market: Understand their concept by Nature, Classification, Growth, and Development! Image credit from #Pixabay.

    The Development of Indian Capital Market:

    Here we detail about the eight developments in the Indian capital market.

    Financial Intermediation:

    The Indian capital market has grown due to the innovation of the mechanism of indirect financing. This innovation has enhanced the efficiency of the flow of funds from ultimate savers to ultimate users through newly established financial intermediaries like UTI, LIC, and GIC. The LIC has been mobilizing the savings of households to build a “life fund”.

    It has been deploying a part of “life fund” to purchase the shares and debentures of the companies. Until 1991 UTI was amongst the top ten shareholders in one out of every three companies listed in the Stock Exchange in which it had a shareholding. Likewise, UTI has been mobilizing savings of households through the sale of “units” to invest in securities of “blue-chip” companies.

    In short, financial intermediaries like LIC, UTI, and GIC have activated the growth process of the Indian capital market. It is evident from the rising intermediation ratio. The intermediation ratio is a ratio of the volume of financial instruments issued by the financial institutions, i.e., secondary securities to the volume of primary securities issued by non-financial corporate firms rose from 0.27 during 1951-56 to 0.37 during 1979-80 to 1981-82.

    Underwriting of Securities:

    The New Issue Market as a segment of the capital market can be activated through institutional arrangements for the underwriting of new issues of securities. During the pre-independence period, the volume of securities underwritten was quite minimal due to lack of an adequate institutional arrangement for the provision of underwriting. Stockbrokers and banks used to perform this function.

    In recent years, the volume and amount of securities underwritten have tremendously increased owing to the increasing participation of specialized financial institutions like LIC and UTI and the developed banks like 1FC1,1CICI and IDBI in underwriting activities. It is evident from the fact that the number of securities underwritten was only 55 percent in 1960-61, whereas at present it is about 99 percent.

    Response to the Offer of Public Issues of Shares and Bonds:

    Traditionally investors in India being risk-investors had been reluctant to invest in shares of public limited companies. Hence, industrial securities as a form of investment were not popular in India before 1951. However, since 1991 public response to corporate securities has been improving. But equity-cult has yet to be developed in rural areas.

    It is important to point out that the public response to new issues of shares and bonds depends upon number of factors such as rates of return on industrial securities relative to rates of return on non-marketable financial assets and real assets, government’s monetary policy and fiscal policy and above all legal protection to investors in recent years.

    All the above-mentioned factors have contributed to the growth of public response to the new issue of corporate securities. In short, growing response to public issues has strengthened the Indian capital market. It is evident from the fact that the number of shareholders rose from 60 lakh in 1985 to 160 lakh in 1994.

    Merchant Banking:

    The role of merchant banking in India’s capital market can be traced back to 1969 when Grind lays Bank established a special cell called the “Merchant Banking”. Since then all the commercial banks have set up the “Merchant Banking Division” to play an important role in the capital market. The merchant banking division of commercial banks advises the companies about economic viability, financial viability and technical feasibility of the project.

    They conduct the initial ‘spade work” to find out the investment climate to advise the company whether the public issue floated would be fully subscribed or under-subscribed. The merchant banks in India act as the underwriter as well as the manager of new issues of securities. The Securities and Exchange Board of India (SEBI) regulates all merchant banks as far as their operations relating to issue activity are concerned. To sum up, the emergence of merchant banking has strengthened the institutional base of the Indian capital market.

    Credit Rating Agencies:

    Of late, credit rating agencies have emerged in the financial sectors. This is an important development for the growth of the Indian capital market. Investment Information and Credit Rating Agency of India (ICRA) rates bonds, debentures, preference shares, Corporate Debentures, and Commercial Papers.

    As Credit Rating Information Services of India Ltd. (CRISIL) is a pioneer in credit rating, it rates debt instruments of banks, financial institutions, and corporate firms. The credit assessment of companies issuing securities helps in the growth of New Issue Market segment of the capital market.

    Mutual Funds:

    Mutual funds companies are investment trust companies. Mutual funds schemes are designed to mobilize funds from individuals and institutional investors, who in exchange get units which Can be redeemed after a certain lock-in period, at their Net Asset Value (NAV). The mutual fund schemes provide tax benefits and buyback facility. The Unit Trust of India (UTI) can be regarded as the pioneer in the setting up of mutual funds in India. Of late, commercial banks have also launched in India mutual funds schemes.

    Can-stock scheme of the Canara bank and LIC’s scheme, such as Dhanashree, Dhanaraksha, and Dhanariddhi are mutual funds schemes. Since mutual funds schemes help to mobilize small savings of the relatively smaller savers to invest in industrial securities, so these schemes contribute to the growth of the capital market. The total assets of mutual funds companies increased from Rs. 66,272 crore in 1993-94 to Rs. 99,248 crore in 2005 and to Rs. 4,13,365 crore in 2008. The investment of mutual funds in the secondary market influences the share prices in the stock exchange.

    Stock Exchange Regulation Act:

    The growth of capital market would not have been possible had the Government of India not legislated suitable laws to protect the investors and regulate the Stock Exchanges. Under this Act, only recognized stock exchanges are allowed to function. This Act has empowered the Government of India to inquire into the affairs of a Stock Exchange and regulate it’s working. into the affairs of a Stock Exchange and regulate it’s working.

    The Government of India established the Securities and Exchange Board of India (SEBI) on April 12, 1988, through an through an extraordinary notification in the Gazette of India. In April 1992, SEBI was granted statutory recognition by passing an Act. Since 1991, SEBI has been evolving and implementing various measures and practices to infuse greater transparency in the capital market in the interest of investing public and orderly development of the securities market.

    Liberalization Measures:

    Foreign Institutional Investors (FII) have been allowed access to the Indian capital market. Investment norms for NRIs have been liberalized, so that NRIs and Overseas Corporate Bodies can buy shares and debentures, without prior permission of RBI. This was expected to internationalize the Indian capital market.

    To sum up, the Indian capital market has registered an impressive growth since 1951. However, it is only since the mid-1980s that new institutions, new financial instruments, and new regularity measures have led to speedy growth of the capital market. The liberalization measures under the New Economic Policy (NEP) gave a further boost to the growth of the Indian capital market.

  • How to Analysis of Capitalism in India?

    How to Analysis of Capitalism in India?

    What is Capitalism? In the capitalist economic system, all farms, factories and other means of production are the property of private individuals and firms. In the words of Loucks, “Capitalism is a system of economic organization featured by private ownership and use for private profit of man-made and nature-made capital”. So, what is the question we are going to discuss; How to Analysis of Capitalism in India?

    Here are explained; Capitalism in India: first Features, Growth, Process, and finally Social.

    Definition; According to Wright, “Capitalism is a system in which, on average, much of the greater portion of economic life and particularly of net new investment is carried on by private (i.e. non-government) units under conditions of active and substantially free competition and avowedly at the least, under the incentive of hope for profit”.

    The Features of Capitalism:

    In the broadest sense, capitalism may be defined as the economic system making the widest use of capital in the process of production. In the technical sense, capitalism may be defined as the economic system of production in which capital goods are owned privately by individuals or corporations.

    The principal features of capitalism are discussed below; key points.

    • Private Property.
    • Profit Motive.
    • Price Mechanism.
    • Role of the State.
    • Market Economy.
    • Consumer Sovereignty.
    • Freedom of Enterprise.
    • Large Scale Production, and.
    • Competition.

    The following are the economic bases of capitalism, now explain each below:

    Private Property:

    Capitalism thrives on the institution of private property. It means that the owner of a firm or factory or mine may use it in any manner he likes. He may hire it to anybody, sell it, or lease it at will in accordance with the prevalent laws of the country. The state’s role is confined to the protection of the institution of private property through laws.” The institution of private property induces its owner to work hard, to organize his business efficiently and to produce more, thereby benefiting not only himself but also the community at large. All this is actuated by the profit motive.

    Profit Motive:

    The main motive behind the working of the capitalist system is the profit motive. The decisions of businessmen, farmers, producers, including that of wage-earners are based on the profit motive. The profit motive is synonymous with the desire for personal gain. It is this attitude of acquisitiveness which lies behind individual initiative and enterprise in a capitalist economy.

    Price Mechanism:

    Under capitalism, the price mechanism operates automatically without any direction and control by the central authorities. It is the profit motive which determines production. Profit being the difference between outlay and receipt, the size of profit depends upon prices. The larger the difference between prices and costs, the higher is the profit. Again, the higher the prices, the greater are the efforts of the producers to produce the varied quantities and types of products. It is the consumers’ choices which determine what to produce, how much to produce, and how to produce. Thus capitalism is a system of mutual exchanges where the price-profit mechanism plays a crucial role.

    Role of the State:

    During the 19th century, the role of the state was confined to the maintenance of law and order, protection from external aggression, and provision for educational and public health facilities. This policy of laissez-faire—of non-intervention in economic affairs by the state—has been abandoned in capitalist economies of the West after the Second World War. Now the state has important tasks to fulfill. They are monetary and fiscal measures to maintain aggregate demand; anti-monopoly measures and nationalized monopoly corporations; and measures for the satisfaction of communal wants such as public health, public parks, roads, bridges, museums, zoos, education, flood control, etc.

    Market Economy:

    Under capitalism, there is no governmental control over the forces of production, distribution, and exchange. It is controlled by the forces operating in the market. There is no price control or regulated distribution by the government. The economy operates freely under the law of demand and supply. The capitalist economy is a liberalized or market economy.

    Consumer’s Sovereignty:

    Under capitalism, ‘the consumer is the king.’ It means freedom of choice by consumers. The consumers are free to buy any number of goods they want. Producers try to produce a variety of goods to meet the tastes and preferences of consumers. This also implies freedom of production whereby producers are at liberty to produce a vast variety of commodities in order to satisfy the consumer who acts like a ‘king’ in making a choice out of them with his given money income. These twin freedoms of consumption and production are essential for the smooth functioning of the capitalist system.

    Freedom of Enterprise:

    Freedom of enterprise means that there is the free choice of occupation for an entrepreneur, a capitalist, and a laborer. But this freedom is subject to their ability and training, legal restrictions, and existing market conditions. Subject to these limitations, an entrepreneur is free to set up any industry, a capitalist can invest his capital in any industry or trade he likes, and a person is free to choose any occupation he prefers. It is on account of the presence of this important feature of freedom of enterprise that a capitalist economy is also called a free enterprise economy.

    Large Scale Production:

    It is another important feature of capitalism. Capitalism arose as a result of the industrial revolution which made large-scale production possible. The installation of gigantic plants and division of labor increased production. More production means wider use of capital and led to more profits.

    Competition:

    Competition is one of the most important features of a capitalist economy. It implies the existence of a large number of buyers and sellers in the market who are motivated by self-interest but cannot influence market decisions by their individual actions. It is competition among buyers and sellers that determine the production, consumption, and distribution of goods and services. There being sufficient price flexibility under capitalism, prices adjust themselves to changes in demand, in production techniques, and in the supply of factors of production. Changes in prices, in turn, bring adjustments in production, factor demand, and individual incomes.

    How to the Growth of Capitalism in India?

    In primitive societies the usual system of exchanging goods vas barter system. At that time the idea of profit did not exist, ‘people accumulated goods not for making a profit during the days of scarcity but to gain prestige. The system of trading often consisted if giving and mutual rendering of services. Economic factors such as wages, investment; interest and profit were practically unknown preliterate societies. During the early Middle Ages, trade and commerce were little more advanced than they had been among the primitive peoples.

    While at first conducted largely on a barter basis, trading came gradually more and more to involve money as a medium of exchange. This gave a fillip to the development of trade and commerce which gave importance to money, gold, silver, and tokens thereof. Money is not property, it is a symbol of property; it has a profound influence on the uses to which productive properties are put. According to Simmel, the establishment of the institution of money in the economic system of modern western society has had far-reaching effects upon almost every phase of life.

    It resulted in greater freedom for both the employer and employee and for both the seller and buyer of goods and services since it makes for the depersonalized relationship between the two parties in a transaction. Simmel maintains that the institution of money has radically changed our whole philosophy of life. It has made us pecuniary in our attitudes so that everything is evaluated in terms of money, and as social contacts have become depersonalized, human relations have become superficial and cold.

    In the early part of the modern period, the economic activities were generally regulated by the governing powers. It was an economic reflection of the growing unification of European peoples under strong monarchical Governments. The interest of the secular rulers lay in internal unification and this necessarily meant economic as well as political integration. The mercantilist ideology dominated the period. The economic activities of the people were politically regulated to increase the profits of the king and to fill his treasury with wealth.

    The nation was looked upon by the mercantilist as an economic organization engaged in the making of profit. The ownership and use of productive properties were minutely regulated by mercantilist’s law. Then came the Industrial Revolution which changed the techniques of production. The policy of mercantilism also had failed to bring about the welfare of the people. To secure maximum production of usual goods the new do “trine of ‘Laissez-faire’ was propounded.

    The doctrine preached non- interference in economic matters. According to this doctrine, if individuals pursue their own interest, unhampered by restriction; they will achieve the greatest happiness of the greatest number. Its advocates, Adam Smith, J.S. Mill, Spencer, and Sumner contended that Government should remove all legal restrictions on trade, on production, on the exchange of wealth and on the accumulation of property.

    Adam Smith enunciated four principles:
    • The doctrine of self-interest.
    • Laissez-faire policy.
    • The theory of competition, and.
    • Profit motive.

    Upon these principles and in response to the changing techniques of production brought about by the Industrial Revolution, a new system of property ownership and ‘production’, capitalism developed. The Industrial Revolution replaced factories in place of households. In factories, the work was divided up into little pieces, each worker doing a little piece. Production increased. Large plants in -course of time were set.

    Corporations owning large plants came into being. All these developments of mass production, the division of labor, specialization, and exchange were accompanied by capitalism. In this new system of production and exchange, the ownership of productive properties was both individualized and divested of all social responsibility.

    The Property became private and was freed from all obligations to the state, church, family and other institutions. The owners of the factory were free to do as they pleased. Profit was the main motive for them. They were under no obligation to produce goods if they believed that they could not make the profit. The mode of production was profit-oriented and the Governments in adherence to the doctrine of Laissez-faire supported the owners in this right.

    How to understand Capitalism as a Process?

    With the growth of the capitalist system there was:

    • Extreme polarization of classes.
    • Pauperization.
    • Alienation.
    • Dehumanization of Labor.
    • The dictatorship of the proletariat, and.
    • Shift from Capitalism to Socialism.

    Marx’s sociology of capital in capitalist societies is not applicable to so many capitalist societies. This is the” case particularly with the Asiatic societies which do not show any class conflict in-spite of social stratification.

    In the words of Raymond Aron,

    “For one thing the Marxist conception of capitalist society and of society, in general, is sociological but this sociology is related to philosophy, and a number of interpretative difficulties arise from the relation of philosophy to sociology.”

    Hence Marx’s predictions about the downfall of capitalism have not come true everywhere. His idea of constant pauperization of Labour is wrong so far as Western societies are concerned. Neither is there any proof of Proletaization. The claim of the destruction of capitalism is inevitable is far from being scientific.

    How to Analysis of Capitalism in India
    How to Analysis of Capitalism in India? Old Two Rupees Coin, Image credit from #Pixabay.

    What do the Social Consequences of Capitalism?

    Capitalism or economic development has brought in some good consequences which are as follows:

    • Economic Progress: Capitalism has led men to exploit the natural resources more and more. The people exert themselves utmost for earning money. This had led to many inventions in the field of industry, agriculture, and business which have contributed to economic progress.
    • Exchange of Culture: Capitalism has led to international trade and exchange of know-how. People in different countries have come nearer to each other. The development of the means of transport and communication has facilitated contacts among the peoples of the world thereby leading to exchange of ideas and culture.
    • High Standard of Living: Capitalism is the product of industrialization. Industrialization has increased production. Now men do not have to toil for bread as they used to do in the primitive days. The necessities of life are easily available.
    • The progress of Civilization: Capitalism was instrumental in inventing new machines and increasing the production of material goods. Man is to-day more civilized than his ancestors.
    • Lessening of Racial Differences: Capitalism has also led to the lessening of differences based on race, creed, caste, and nationality. In the factory, the workers and officials belonging to different castes co-operate with one another and work shoulder to shoulder. Inter-mixing of castes is the off-shoot of capitalism.

    But in spite of the above good consequences capitalism has proved a curse instead of a blessing.

    Its bad effects are the following:
    • Imbalance in Social System: Capitalism has led to an imbalance in the social system. It has failed to adjust itself to the welfare of society. It has widened the gap between the haves and have-not’s and created insatiable greed for wealth among the people. It has changed the very outlook of human beings. Wealth has become an important criterion of status.
    • Artificiality: Capitalism has transformed modern culture into mere artificiality. Today there is a false courtesy. One does not find gentility and human touch. One can see false prestige, mere artificiality, and sheer advertisement even in art and literature, nothing to speak of diet, dress, and speech etc. Life today has become artificial.
    • Greed for Wealth: Capitalism is based on greed for wealth It has raised wealth to the pedestal of deity. Wealth has become the be-all and end-all of human life. The modern man is mad after wealth. He wants to earn more and more wealth by any means. The idea for morality does not enter into the means of earning. It has thus led to moral degeneration.
    • Destruction of Human Values: In a capitalist order, everything has come to be measured in terms of wealth. All values of human life such as love, sympathy, benevolence, love, and affection are evaluated in terms of silver coins. Every person wants to get the maximum. The sole criterion is wealth, not value.
    • Materialism: Capitalism manifests materialism in its extreme form. Religion and spirituality lose their force. Religion becomes the opium of people. Religion becomes hypocrisy. The big capitalists save lacs of rupees by way of tax through contribution to fictitious charitable institutions. While people are short of goods, the capitalists hoard them to soar the prices.
    • Emphasis on Sex: Capitalist culture lays emphasis on sex. Marriage has become a mere agreement for the satisfaction of sex hunger. The capitalists advertise their goods through the display of sex instincts. Literature and movies are based on sexual passion. Pre-marital and extra-marital sexual relations are on the increase. Man is lacking in self-control.

    It has led to the moral degeneration of man. Obviously, capitalism has failed to bring about the moral development of man. It is injurious both to society and the individual. In short, it has proved a curse to humanity instead of a blessing. Karl Marx was its bitter critic.

  • What is the Growth Strategy for Case Study Starbucks?

    What is the Growth Strategy for Case Study Starbucks?

    Case Study Starbucks Growth Strategy; Today, Starbucks coffee shops and Kiosks can found in a variety of shopping centers, office buildings, bookstores, and other outlets. Starbucks is capitalizing on taste changes that predate the company’s founding. In the early 1960s, American adults consumed an average of three cups of coffee each day. Today, consumption has declined to less than two cups, with only half of American adults as coffee drinkers. Also learn, Starbucks’ Entry to China, What is the Growth Strategy for Case Study Starbucks?

    Studies, Learn, The Growth Strategy for Case Study Starbucks!

    During this time, decaffeinated coffee sales soared. In addition, a new category of intensely loyal coffee drinkers was born. This group of adults consumes “specialty” or “premium” coffees, including regular and decaffeinated versions with a variety of origins and flavors. Sales of specialty coffee have climbed from about $45 million annually to more than $2 billion today, accounting, for about 20 percent of all coffee sales.

    Because Starbucks markets whole beans and coffee beverages, its competition comes from two distinct groups of firms. A number of regional coffee manufacturers distribute premium coffees in local markets, while several large national coffee manufacturers such as Nestle, Proctor & Gamble, and Kraft General Foods market and distribution specialty coffees in supermarkets. Coffee beverages are distributing by restaurants, grocery stores, and coffee retailers. Seattle’s Best Coffee is a fierce competitor.

    The case of History!

    In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel, and writer Gordon Bowker opened Starbucks Coffee. Tea and Spice in Touristy Pikes Place Market in Seattle. The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to sell high-quality coffee beans and equipment. The store did not offer freshly brewed coffee by the cup, but tasting samples were sometimes available.

    Siegel will wear a grocers apron, scooped out beans for customers. While the other two kept their day jobs but came by at lunch or after work to help out. The store was an immediate success, with sales exceeding expectations, partly because of interest stirred by the favorable article in Seattle Times.

    Other things:

    Starbucks ordered its coffee-bean from Alfred Peet but later on, the three partners bought their own used roaster setting up roasting operations in a nearby ramshackle building and developed their own blends and flavors. By the year 1980s, the company had four Starbucks Stores in the Seattle area and had been profitable every year. Later on, Siegel left the company and Jerry Baldwin took over day-to-day management of the company. Gordon Bowker remained as an owner but devoted most of his time in his Design Firm.

    In 1981, Howard Schultz, the vice president of U.S operations for Swedish Maker of stylish kitchen equipment and coffeemakers decided to pay Starbucks a visit. He was curious about why Starbucks was selling so many of his company products. He was impressing with the company management and the quality products they make. Schultz asked Baldwin whether there was any way he could fit into Starbucks and it took a long time to decide his request. He tries many times until one day he was given a job of heading marketing and overseeing the retail stores.

    The case of Challenges:

    • What are some of the challenges associated with Starbucks aggressive growth strategy?
    • Could an unanticipated change in coffee consumption patterns disrupt Starbucks in the same way that it paved the way for the company’s growth in the 1980s?
    • What problems might arise from Starbucks’ efforts to expand rapidly into nations such as India?
    • Comment on the pricing strategies of Starbucks.
    • How would you see the competition of Starbucks in India, with players like Costa Coffee, Mc Donalds, Barista and Café Coffee Day? Draw out a competitive strategy for Starbucks.

    Here are Some More Knowledge these Case for better Understand.

    Howard Schultz spent most of his working hours in the four stores learning the retail aspects of the company business; Schultz was overflowing with ideas for the company. His biggest inspiration and vision for Starbucks future came during 1983 when the company sent him for an international housewares show to Milan, Italy. There he spotted an espresso bar and went to take a coffee.

    H. Schultz was impressed with the coffeehouse services and decided to stay at Milan for a week to explore. All coffee bars and learned as much as he could about the Italian passion for coffee drinks. He made a decision to serve fresh brewed coffee, espressos, and cappuccinos in its stores and try to create an American version of Italian coffee bar culture.

    Schultz shared his idea with Baldwin and it took nearly a year to convince Jerry Baldwin to let him test an espresso bar. In April 1984, the first espresso bar was opened and it was a success too. Yet Baldwin felt something is wrong. After Schultz failed to convince Baldwin for the expansion of business, he left Starbucks in 1985. Schultz started the “Il Giornale” coffee bar chain in 1985 and the coffeehouse was very successful.

    In 1987 Starbucks owner Jerry Baldwin and Bowker decide to sell the whole Starbucks chain to Schultz’s Il Giornale. Which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year. At the time of its initial public offering on the stock market in 1992, Starbucks had grown to 165 outlets.

    The growth of Coffee Stores!

    In 2009 The Company plans to open a net of 900 new stores outside of the United States. Chairman Howard Schultz projects that the Starbucks mobile app will grow from its present 6,000 stores to more than 20,000, 75 percent of which are in the United States. Also, The company added 280 intentional locations in 2001 and is targeting. With an additional 650 stores in Europe by 2004 and 900 locations in Latin America predominantly Mexico by 2005, Starbucks is also moving into China.

    Retail stores account for more than 80 percent of revenues, with specialty operations accounting for the remainder. Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of 2017, the company operates 27,339 locations worldwide. Also, Starbucks first became profitable in Seattle in the early 1980s. Despite an initial economic downturn with its expansion into the Midwest and British Columbia in the late 1980s, the company experienced revitalized prosperity with its entry into California in the early 1990s.

    Location:

    The first Starbucks location outside North America opened in Tokyo in 1996; overseas properties now constitute almost one-third of its stores. Also, The company opened an average of two new locations daily between 1987 and 2007. Starbucks considers the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee.

    Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons. On December 1, 2016, Howard Schultz announced he would resign as CEO effective April 2017 and would replace by Kevin Johnson. Johnson assumed the role of CEO on April 3, 2017.

    What is the Growth Strategy for Case Study Starbucks
    What is the Growth Strategy for Case Study Starbucks?

    Reference:

    1. Case Study – //www.mbaknol.com/management-case-studies/case-study-starbucks-growth-strategy/
    2. About Starbucks – //en.wikipedia.org/wiki/Starbucks
    3. Photo Credit URL – //cdn.someecards.com/posts/guy-uses-drone-to-pick-up-starbucks-order-0rb.png

  • Learning Development and Exercise of Self-Efficacy Over the Lifespan!

    Learning Development and Exercise of Self-Efficacy Over the Lifespan!


    Different periods of life present certain types of competency demands for successful functioning. These normative changes in required competencies with age do not represent lock-step stages through which everyone must inevitably pass. There are many pathways through life and, at any given period, people vary substantially in how efficaciously they manage their lives. The sections that follow provide a brief analysis of the characteristic developmental changes in the nature and scope of perceived self-efficacy over the course of the lifespan.

    Origins of a Sense of Personal Agency


    The newborn comes without any sense of self. Infants exploratory experiences in which they see themselves produce effects by their actions provide the initial basis for developing a sense of efficacy. Shaking a rattle produces predictable sounds, energetic kicks shake their cribs, and screams bring adults. By repeatedly observing that environmental events occur with action, but not in its absence, infants learn that actions produce effects. Infants who experience success in controlling environmental events become more attentive to their own behavior and more competent in learning new efficacious responses, than are infants for whom the same environmental events occur regardless of how they behave.

    Development of a sense of personal efficacy requires more than simply producing effects by actions. Those actions must be perceived as part of oneself. The self becomes differentiated from others through dissimilar experience. If feeding oneself brings comfort, whereas seeing others feed themselves has no similar effect, one’s own activity becomes distinct from all other persons. As infants begin to mature those around them refer to them and treat them as distinct persons. Based on growing personal and social experiences they eventually form a symbolic representation of themselves as a distinct self.

    Familial Sources of Self-Efficacy


    Young children must gain self-knowledge of their capabilities in broadening areas of functioning. They have to develop, appraise and test their physical capabilities, their social competencies, their linguistic skills, and their cognitive skills for comprehending and managing the many situations they encounter daily. Development of sensorimotor capabilities greatly expands the infants’ exploratory environment and the means for acting upon it. These early exploratory and play activities, which occupy much of children’s waking hours, provide opportunities for enlarging their repertoire of basic skills and sense of efficacy.

    Successful experiences in the exercise of personal control are central to the early development of social and cognitive competence. Parents who are responsive to their infants’ behavior, and who create opportunities for efficacious actions by providing an enriched physical environment and permitting freedom of movement for exploration, have infants who are accelerated in their social and cognitive development. Parental responsiveness increases cognitive competence, and infants’ expanded capabilities elicit greater parental responsiveness in a two-way influence. Development of language provides children with the symbolic means to reflect on their experiences and what others tell them about their capabilities and, thus, to expand their self-knowledge of what they can and cannot do.

    The initial efficacy experiences are centered in the family. But as the growing child’s social world rapidly expands, peers become increasingly important in children’s developing self-knowledge of their capabilities. It is in the context of peer relations that social comparison comes strongly into play. At first, the closest comparative age-mates are siblings. Families differ in number of siblings, how far apart in age they are, and in their sex distribution. Different family structures, as reflected in family size, birth order, and sibling constellation patterns, create different social comparisons for judging one’s personal efficacy. Younger siblings find themselves in the unfavorable position of judging their capabilities in relation to older siblings who may be several years advanced in their development.

    Broadening of Self-Efficacy Through Peer Influences


    Children’s efficacy-testing experiences change substantially as they move increasingly into the larger community. It is in peer relationships that they broaden self-knowledge of their capabilities. Peers serve several important efficacy functions. Those who are most experienced and competent provide models of efficacious styles of thinking and behavior. A vast amount of social learning occurs among peers. In addition, age-mates provide highly informative comparisons for judging and verifying one’s self-efficacy. Children are, therefore, especially sensitive to their relative standing among the peers in activities that determine prestige and popularity.

    Peers are neither homogeneous nor selected indiscriminately. Children tend to choose peers who share similar interests and values. Selective peer association will promote self-efficacy in directions of mutual interest, leaving other potentialities underdeveloped. Because peers serve as a major influence in the development and validation of self-efficacy, disrupted or impoverished peer relationships can adversely affect the growth of personal efficacy. A low sense of social efficacy can, in turn, create internal obstacles to favorable peer relationships. Thus, children who regard themselves as socially inefficacious withdraw socially, perceive low acceptance by their peers and have a low sense of self-worth. There are some forms of behavior where a high sense of efficacy may be socially alienating rather than socially affiliating. For example, children who readily resort to aggression perceive themselves as highly efficacious in getting things they want by aggressive means.

    School as an Agency for Cultivating Cognitive Self-Efficacy


    During the crucial formative period of children’s lives, the school functions as the primary setting for the cultivation and social validation of cognitive competencies. School is the place where children develop the cognitive competencies and acquire the knowledge and problem-solving skills essential for participating effectively in the larger society. Here their knowledge and thinking skills are continually tested, evaluated, and socially compared. As children master cognitive skills, they develop a growing sense of their intellectual efficacy. Many social factors, apart from the formal instruction, such as peer modeling of cognitive skills, social comparison with the performances of other students, motivational enhancement through goals and positive incentives, and teachers interpretations of children’s successes and failures in ways that reflect favorably or unfavorably on their ability also affect children’s judgments of their intellectual efficacy.

    The task of creating learning environments conducive to development of cognitive skills rests heavily on the talents and self-efficacy of teachers. Those who are have a high sense of efficacy about their teaching capabilities can motivate their students and enhance their cognitive development. Teachers who have a low sense of instructional efficacy favor a custodial orientation that relies heavily on negative sanctions to get students to study.

    Teachers operate collectively within an interactive social system rather than as isolates. The belief systems of staffs create school cultures that can have vitalizing or demoralizing effects on how well schools function as a social system. Schools in which the staff collectively judge themselves as powerless to get students to achieve academic success convey a group sense of academic futility that can pervade the entire life of the school. Schools in which staff members collectively judge themselves capable of promoting academic success imbue their schools with a positive atmosphere for development that promotes academic attainments regardless of whether they serve predominantly advantaged or disadvantaged students.

    Students’ belief in their capabilities to master academic activities affects their aspirations, their level of interest in academic activities, and their academic accomplishments. There are a number of school practices that, for the less talented or ill prepared, tend to convert instructional experiences into education in inefficacy. These include lock-step sequences of instruction, which lose many children along the way; ability groupings which further diminish the perceived self-efficacy of those cast in the lower ranks; and competitive practices where many are doomed to failure for the success of a relative few.

    Classroom structures affect the development of intellectual self-efficacy, in large part, by the relative emphasis they place on social comparison versus self-comparison appraisal. Self- appraisals of less able students suffer most when the whole group studies the same material and teachers make frequent comparative evaluations. Under such a monolithic structure students rank themselves according to capability with high consensus. Once established, reputations are not easily changed. In a personalized classroom structure, individualized instruction tailored to students’ knowledge and skills enables all of them to expand their competencies and provides less basis for demoralizing social comparison. As a result, students are more likely to compare their rate of progress to their personal standards than to the performance of others. Self-comparison of improvement in a personalized classroom structure raises perceived capability. Cooperative learning structures, in which students work together and help one another also tend to promote more positive self-evaluations of capability and higher academic attainments than do individualistic or competitive ones.

    Growth of Self-Efficacy Through Transitional Experiences of Adolescence


    Each period of development brings with it new challenges for coping efficacy. As adolescents approach the demands of adulthood, they must learn to assume full responsibility for themselves in almost every dimension of life. This requires mastering many new skills and the ways of adult society. Learning how to deal with pubertal changes, emotionally invested partnerships and sexuality becomes a matter of considerable importance. The task of choosing what lifework to pursue also looms large during this period. These are but a few of the areas in which new competencies and self-beliefs of efficacy have to be developed.

    With growing independence during adolescence some experimentation with risky behavior is not all that uncommon. Adolescents expand and strengthen their sense of efficacy by learning how to deal successfully with potentially troublesome matters in which they are unpracticed as well as with advantageous life events. Insulation from problematic situations leaves one ill-prepared to cope with potential difficulties. Whether adolescents foresake risky activities or become chronically enmeshed in them is determined by the interplay of personal competencies, self- management efficacy and the prevailing influences in their lives.

    Impoverished hazardous environments present especially harsh realities with minimal resources and social supports for culturally-valued pursuits, but extensive modeling, incentives and social supports for transgressive styles of behavior. Such environments severely tax the coping efficacy of youth enmeshed in them to make it through adolescence in ways that do not irreversibly foreclose many beneficial life paths.

    Adolescence has often been characterized as a period of psychosocial turmoil. While no period of life is ever free of problems, contrary to the stereotype of “storm and stress,” most adolescents negotiate the important transitions of this period without undue disturbance or discord. However, youngsters who enter adolescence beset by a disabling sense of inefficacy transport their vulnerability to distress and debility to the new environmental demands. The ease with which the transition from childhood to the demands of adulthood is made similarly depends on the strength of personal efficacy built up through prior mastery experiences.

    Self-Efficacy Concerns of Adulthood


    Young adulthood is a period when people have to learn to cope with many new demands arising from lasting partnerships, marital relationships, parenthood, and occupational careers. As in earlier mastery tasks, a firm sense of self-efficacy is an important contributor to the attainment of further competencies and success. Those who enter adulthood poorly equipped with skills and plagued by self-doubts find many aspects of their adult life stressful and depressing.

    Beginning a productive vocational career poses a major transitional challenge in early adulthood. There are a number of ways in which self-efficacy beliefs contribute to career development and success in vocational pursuits. In preparatory phases, people’s perceived self-efficacy partly determines how well they develop the basic cognitive, self-management and interpersonal skills on which occupational careers are founded. As noted earlier, beliefs concerning one’s capabilities are influential determinants of the vocational life paths that are chosen.

    It is one thing to get started in an occupational pursuit, it is another thing to do well and advance in it. Psychosocial skills contribute more heavily to career success than do occupational technical skills. Development of coping capabilities and skills in managing one’s motivation, emotional states and thought processes increases perceived self-regulatory efficacy. The higher the sense of self-regulatory efficacy the better the occupational functioning. Rapid technological changes in the modern workplace are placing an increasing premium on higher problem-solving skills and resilient self-efficacy to cope effectively with job displacements and restructuring of vocational activities.

    The transition to parenthood suddenly thrusts young adults into the expanded role of both parent and spouse. They now not only have to deal with the ever-changing challenges of raising children but to manage interdependent relationships within a family system and social links to many extrafamilial social systems including educational, recreational, medical, and caregiving facilities. Parents who are secure in their parenting efficacy shepherd their children adequately through the various phases of development without serious problems or severe strain on the marital relationship. But it can be a trying period for those who lack a sense of efficacy to manage the expanded familial demands. They are highly vulnerable to stress and depression.

    Increasing numbers of mothers are joining the work force either by economic necessity or personal preference. Combining family and career has now become the normative pattern. This requires management of the demands of both familial and occupational roles. Because of the cultural lag between societal practices and the changing status of women, they continue to bear the major share of the homemaking responsibility. Women who have a strong sense of efficacy to manage the multiple demands of family and work and to enlist their husbands’ aid with childcare experience a positive sense of well-being. But those who are beset by self-doubts in their ability to combine the dual roles suffer physical and emotional strain.

    By the middle years, people settle into established routines that stabilize their sense of personal efficacy in the major areas of functioning. However, the stability is a shaky one because life does not remain static. Rapid technological and social changes constantly require adaptations calling for self-reappraisals of capabilities. In their occupations, the middle-aged find themselves pressured by younger challengers. Situations in which people must compete for promotions, status, and even work itself, force constant self-appraisals of capabilities by means of social comparison with younger competitors.

    Reappraisals of Self-Efficacy With Advancing Age


    The self-efficacy issues of the elderly center on reappraisals and mis-appraisals of their capabilities. Biological conceptions of aging focus extensively on declining abilities. Many physical capacities do decrease as people grow older, thus, requiring reappraisals of self-efficacy for activities in which the biological functions have been significantly affected. However, gains in knowledge, skills, and expertise compensate some loss in physical reserve capacity. When the elderly is taught to use their intellectual capabilities, their improvement in cognitive functioning more than offsets the average decrement in performance over two decades. Because people rarely exploit their full potential, elderly persons who invest the necessary effort can function at the higher levels of younger adults. By affecting level of involvement in activities, perceived self- efficacy can contribute to the maintenance of social, physical and intellectual functioning over the adult life span.

    Older people tend to judge changes in their intellectual capabilities largely in terms of their memory performance. Lapses and difficulties in memory that young adults dismiss are inclined to be interpreted by older adults as indicators of declining cognitive capabilities. Those who regard memory as a biologically shrinking capacity with aging have low faith in their memory capabilities and enlist little effort to remember things. Older adults who have a stronger sense of memory efficacy exert greater cognitive effort to aid their recall and, as a result, achieve better memory.

    Much variability exists across behavioral domains and educational and socioeconomic levels, and there is no uniform decline in beliefs in personal efficacy in old age. The persons against whom the elderly compare themselves contribute much to the variability in perceived self-efficacy. Those who measure their capabilities against people their age are less likely to view themselves as declining in capabilities than if younger cohorts are used in comparative self-appraisal. Perceived cognitive inefficacy is accompanied by lowered intellectual performances. A declining sense of self-efficacy, which often may stem more from disuse and negative cultural expectations than from biological aging, can thus set in motion self-perpetuating processes that result in declining cognitive and behavioral functioning. People who are beset with uncertainties about their personal efficacy not only curtail the range of their activities but undermine their efforts in those they undertake. The result is a progressive loss of interest and skill.

    Major life changes in later years are brought about by retirement, relocation, and loss of friends or spouses. Such changes place demands on interpersonal skills to cultivate new social relationships that can contribute to positive functioning and personal well-being. Perceived social inefficacy increases older person’s vulnerability to stress and depression both directly and indirectly by impeding development of social supports which serve as a buffer against life stressors.

    The roles into which older adults are cast impose sociocultural constraints on the cultivation and maintenance of perceived self-efficacy. As people move to older-age phases most suffer losses of resources, productive roles, access to opportunities and challenging activities. Monotonous environments that require little thought or independent judgment diminish the quality of functioning, intellectually challenging ones enhance it. Some of the declines in functioning with age result from sociocultural dispossession of the environmental support for it. It requires a strong sense of personal efficacy to reshape and maintain a productive life in cultures that cast their elderly in powerless roles devoid of purpose. In societies that emphasize the potential for self-development throughout the lifespan, rather than psychophysical decline with aging, the elderly tend to lead productive and purposeful lives.