Tata Model Case Study - 1477 Words

Economics Managerial Decision: TATA Model Organizations today have to stay vigilant and scan all environmental aspects of the economy, their finances and the business to ensure sustainability in meeting its strategic goals. These goals cumulate from leadership abilities to develop and implement sound decisions that align with strategies that promote operational efficient and effectiveness of its product or services. Therefore, developing pricing strategies sensitive to market will further provide competitive advantages within the industry, while assisting in creating maximum profitability. The TATA simulation model provides opportunities for Quasar Computers to evaluate and assess its newest optical Neutron Computer, five-times faster†¦show more content†¦Quasar has the opportunity to maximize its profits as a monopoly competitor, due to the lack of completion, further, has the ability to charge a higher set price for the Neutron, well above cost to produce or within a competitive market – this allows maximization of revenue. Strategic Pricing. According to Metcalf (n.d.), positive marginal profit (MP) (scenario in Graph 1), graphs how a firm reaches MP - amplified production of goods or services; whereas, when negative marginal profits exits, a firm would produce less product or services to balance diminished returns to zero (Wikipedia, n.d). Subsequently, a company reaches profit maximization when its marginal revenue (MR) equates to its marginal cost (MC). Therefore, in order to create a price structure for the Neutron, Quasar would formulate a strategy of maximizing profits of the MR equating to MC, since no other competing firms exist for three years. To accomplish such measure, establishing the price per unit to $2,550, where both marginal revenue as well as the marginal curve shifts and intersect, creating equilibrium (MR = MC). Data presented on the TATA System (n.d.) as follow: quantity unit output was 5.3 million (m), with a total profit of $1.29 billion (b); total revenue exceeded expectation of $12.18b, with a total of $13.5b and created the paramount solution for profit maximization. Brand Building. To ensure theShow MoreRelatedTata Nano Case Study1425 Words   |  6 PagesCASE STUDY ON TATA NANO TATA MOTORS HAS UNVEILED THE WORLDS CHEAPEST MOTOR NANO CAR The case discusses the making of Tata Nano, the worlds cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of TataNano. The car was the result of a five year research and development project carried out by Tata Nano development team. While developingRead MoreEssay on Case Study: Tata Motors Acquisition of Jlr1593 Words   |  7 Pages------------------------------------------------- CASE STUDY: Tata Motors Acquisition of Jaguar and Land Rover in 2008 ------------------------------------------------- VenkitV Introduction India-based Tata Motors Ltd. successfully acquired two British automotive brands – Jaguar and Land Rover (JLR), in June 2008 from Ford Motors for $ 2.3B. As part of the deal, Tata Motors gained 100% stake in companies, 3 UK plants, 2 advanced design and engineering centers, 26 national sales companiesRead MoreTata Motors : Building The Nano1104 Words   |  5 Pages1. 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Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.† (Tata 2016) Tata Motors is one ofRead MoreTata Motors Jlr Acquisition1813 Words   |  8 PagesSTRATEGIC MANAGEMENT INTERIM REPORT TATA MOTORS-JAGUAR LAND ROVER ACQUSITION Table of Contents Executive Summary 3 Introduction 4 SWOT Analysis of Ford Motor Co 5 Business Strategy of Ford 6 SWOT Analysis of Tata Motors 7 Why Acquisition 9 Future study 9 References 10 Executive Summary: This project aims at analysing the acquisition of Jaguar Land Rover by Tata Motors. Jaguar and Land Rover brands wereRead MoreTata Motors Jlr Acquisition1825 Words   |  8 PagesSTRATEGIC MANAGEMENT INTERIM REPORT TATA MOTORS-JAGUAR LAND ROVER ACQUSITION Table of Contents Executive Summary 3 Introduction 4 SWOT Analysis of Ford Motor Co 5 Business Strategy of Ford 6 SWOT Analysis of Tata Motors 7 Why Acquisition 9 Future study 9 References 10 Executive Summary: This project aims at analysing the acquisition of Jaguar Land Rover by Tata Motors. Jaguar and Land Rover brands were held by Ford MotorRead MoreTata Communications: Building a Global-Local Operating Model6825 Words   |  28 PagesTata Communications: Building a Global-Local Operating Model By Stà ©phane J.G. Girod, Joshua B. Bellin and Robert J. Thomas November 2009 Case Study Tata Communications: Building a Global-Local Operating Model A Mumbai-based â€Å"global startup† in the rapidly changing communication-services industry must decide how to manage its global footprint and surmount new industry challenges—all while honoring the Indian cultural values it was founded on. Its solution? Build a â€Å"global-local† operatingRead MoreMetamorphosis of Tata Steel -the Challenges of Change Management4836 Words   |  20 PagesMETAMORPHOSIS OF TATA STEEL -THE CHALLENGES OF CHANGE MANAGEMENT There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. — Niccolo Machiavelli The Prince (1532) In times of rapid change, experience could be your worst enemy. — J. Paul Getty INTRODUCTION 1. 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In the highly competitive small-car market of India, Tata Nano promised to set the bar so high that it would become extremely difficult for the competitors to match. The dream of owning a car for as little as Rupees 1 lakh (Rs.100,000 – roughly USD2500) was too tempting for millions

Internet and Education Positive or Negative Aspect Free Essays

string(40) " Researchers Jomon Aliyas Paul, Hope M\." Internet and Education: Positive or Negative Aspect? The Internet started to boom in the 1990’s and has continued to evolve ever since. Today the concept of what was thought to be one of the greatest inventions has blown this old-time invention out of the water. In order for the Internet to be accessible a computer device is needed. We will write a custom essay sample on Internet and Education: Positive or Negative Aspect? or any similar topic only for you Order Now Today on we can carry the Internet in our hands with wireless access; as before it was a fixed machine usually on a desk with multiple cords attached. Noting that the invention of the computer and Internet has only increased in value and quality the rate of use has also increased significantly. This increase use of the Internet has affected and impacted people around the world. People use it at home, work and school for different reasons such as to communicate, shop, and look up information. The question that withholds is whether or not Internet use is beneficial or problematic. A topic that relates to this ongoing question is the effects that Internet use has on education and academic performance. The Internet is used through a wide variety of spectrums within education; teachers and students use the Internet on a daily basis. Studies have shown positive and negative factors of the Internet appearing in education from both student and instructor views. When looking at the Internet as a positive aspect there are many studies and factors that play a role in helping conclude this acquisition about Internet in an educational setting. The Internet can be very beneficial for students along with teachers and administrators. For example, the adult literacy and basic education (ALBE) classroom teachers have found the Internet to be beneficial for themselves as well their students (Berger, 2010). Jim I. Berger conducted a study using ALBE instructors to better understand their use of the Internet in the classrooms. These ALBE instructors explain they use the Internet to simply look up lesson plans and to communicate with the students on a daily basis (Berger, 2010). Berger (2010) sent a packet of 50 fifty-six-item surveys to every state director of ALBE services; in return he got 219 applications with an 18. % response rate (p. 155). When focusing more on the results and procedure Berger (2010) grouped the 56-item survey into 5 composite scales; (a) reasons for use (the Why scale), (b) ways the Internet was used (the Practice scale), (c) positive consequences (the PosCon scale), (d) negative consequences (the NegCon scale) and (e) reasons they would or could not use the Internet in their classroom (the Bar rier Scale). Two specific parts of Berger’s study that helps conclude Internet is a positive aspect in education is the Why scale and the PosCon scale. Berger (2010) asked the respondents to use the Likert-like scale with values not, some, or very to address his survey questions. When reporting the results for the Why scale Berger chose the teachers who answered with very. Majority of the teachers (71. 8%) said they felt it was very important to use the Internet in class because students would one day need it in their professional lives, around half (54. 1%) thought the Internet helped students learn basic skills, a little less than half (40. 9%) stated they used it because they enjoyed to, while (31. 3%) of teachers felt the Internet makes them better teachers (Berger, 2010, p. 56). For the PosCon scale Berger (2010) reported the results based on ALBE instructors who agree or strongly agree. His findings concluded that 83. 5% reported that students were more empowered, 82. 4% thought the material was more engaging for the students, 82. 2% felt that students improved their basic skills, and 76. 2% thought they could incorporate high er-level thinking skills in their lessons. Also, a great proportion (70. 2%) stated that classes became more student centered and half (50. 4%) thought the students worked together more often (Berger, 2010, p. 157). To conclude Berger’s study it was found that the Internet was beneficial in education when looking at ALBE classrooms in more ways than one. However, a weakness of Berger’s study is the response rate. This is only a small fraction of instructors and teachers around the world. Similar to Berger’s positive findings is a study conducted by Gwo-Jen Hwang, Po-Han Wu and Chi-Chang Chen. Their study addresses the topic of web-based problem-solving activities. According to the Hwang et al. (2012) study online web-based problem-solving games are found to be beneficial in education. In their study an online game was developed for conducting web-based learning activates (Hwang et al. , 2012). Two classes of fifth and sixth graders participated in the study. One group was the experimental group while the other was the control group. The experimental group was guided by an educational computer game that used a Graphical Quiz approach to develop the game-board learning system, while the control group was guided by learning sheets and keyword search online (Hwang et al. 2012). Hwang et al. (2012) required both groups to take a pre-test and post-test regarding â€Å"butterfly ecology. In result Hwang et al. (2012) reported the online-education game not only improved the students’ learning achievement and attitudes, but also situated the students’ in a learning state filled with involvement, concentration and enjoyment. The results also show how the approach was effective; the learning activity conducted in this study showed that students were highly mot ivated in their web-based problem-solving tasks (Hwang et al. , 2012). Hwang et al. (2012) thus concludes that the students were highly engaged in the task due to the intrinsic motivations promoted through the game. Between these two studies it seems safe to say that the Internet is used in multiple ways in education and in general has a positive outcome. While studies like these show positive factors of Internet use in education there are also findings that conclude negative effects of Internet usage. Along with the increased use of the Internet comes increased amount of distractions. Distractions such as social networks, shopping sites, sport networks and YouTube are constantly being streamed from networks around the world. Researchers Jomon Aliyas Paul, Hope M. You read "Internet and Education: Positive or Negative Aspect?" in category "Essay examples" Baker, Justin Daniel Cochran (2012) believe there is a negative correlation between grades and time spent on laptops, tablets and cell phones during class. They also say it’s very common to see students using their phones during class; this behavior is not only distracting to the one using the mobile device but for others around them as well (Baker et al. , 2012). Noting this is an example of how the Internet in education is misused and often abused in educational settings. Relating back to Berger’s study, he concluded there are also some negative aspects of the Internet in education. Berger (2010), states 54. 4% of the instructors claim that students visited sites unrelated to assignments or class work, 36. 7% of instructors found that their classes split into those that did and those that did not know how to use the Internet, 23. 9% found that students visited inappropriate sites (porn, gambling), 22. 5% of instructors indicated that students copied material from the Internet and used it as their own, and 20. 9% felt that their students relied too heavily on the Internet for information (p. 157). His study shows that students are easily distracted by the endless uses of the Internet. As a college student I struggle with these distractions on a regular basis. Looking at a different spectrum of Internet and education researchers Nejla Canbulat, Sevil Inal, and Meral Kelleci conducted a study looking at the relationship between the Internet and academic performance for a small portion of high school students. To further explain the Canbulat et al. (2012) study, 804 high school students between the ages of 15 and 18 were chosen randomly from four high schools in Istanbul city. One of the three questions their study asked was â€Å"Do computer and Internet using periods of high school students adversely affect their success at school? † They collected their data through a survey. They founded that the students average computer use periods were 2. 07 ±1. 5 hours daily and their average Internet access periods were 1. 8 ±1. 5 hours daily (Canbulat et al. , 2012, p. 1648). Depending on if the student had Internet access at home or had to access the Internet through a public place, such as a cafe, altered the results of time spent on the computer. In Nejla Canbulat, Sevil Inal, and Meral Kelleci’s (2012) study they restate Berson and Berson’s findings of 92% of 10800 teenagers between the ages of 12 and 18 had access to the Internet and spent most of their time messaging with people, surfing across websites, playing games and only 1% of them use the Internet for making searches and studying (p. 1644). Canbulat et al. (2012) founded that compared to this statement their study proposed that half of the teenager (50. 5%) connected to Internet for searching purposes; however, other reasons were chatting (18. 1%), playing games (12. %), listening to music (9. 7%), sharing content in forum sites (6. 6%) and accessing websites with sexual content (2. 4%) (p. 1649). Even though these percentages seem to correlate with a positive use of the Internet too much time spent searching and using the Internet causes problems in interpersonal relations (Canbulat et al. , 2012). To conclude their findings they state that the more t ime spent on the Internet adversely affected the student’s success at school. The study also founded that the increased spent time on the Internet decreased the academic success of students. The students that accessed the Internet at home used it less often than the ones who accessed the Internet through a cafe, reckoning that the Internet at home is kept under parental control (Canbulat et al. , 2012). This however may not be the case for every student who has a computer at home; this is only a small study that was done with high school students. When comparing Canbulat et al. and Berger’s studies it’s hard to differentiate whether the Internet is a positive or negative aspect within education due to the different views between teachers and tudents. Most teachers argue it’s a good thing for teaching and it also helps students interact with each other. However, some teachers believe that the increased use of Internet distracts students from their daily work by visiting non-related sites. These findings from Berger’s study relate to the Canbulat et al. correlation found between the increased use of the Internet and decreasing academic performan ces. Students are spending more and more time on these non-related sites affecting their studying habits and overall grades. There have been many studies conducted about the Internet and the psychological effects it has created; some good while some bad. Certain researchers claim that Internet chatting decreases loneliness and depression, increases the feelings of happiness, and greatly enhances perceptions of social support and self-esteem (PW Kang 2007; Shaw and Gant 2002; Chen 2012). While others believe the increasing use of Internet is effecting face-to-face interactions by reducing time spent with family members and friends, thus creating more and more feelings of loneliness and depression (Kraut et al. 1998; Chen 2012). If the Internet does create these feelings of hopelessness and depression this could affect students not only socially but academically too. In the classroom these feelings of depression can often lead to alienation and feel worthy only when using the Internet. This could reduce the social interaction a student may have in school thus creating low self-esteem. A student may then cover these feelings up by using the Internet, which in turn would reduce the motivation of a student to do homework or study for upcoming exams. Overall the Internet is a positive aspect in the world of education. On the contrary it’s known for it’s devious distractions. Studies and research prove both cases are true among students and teachers. People today rely solely on the Internet as before it was just something to have. Is the Internet and technology the destruction of social interaction and resulting in increased isolation? Some critics argue thus is true while others oppose this idea as a whole. This is yet another issue that’s addressed with the concern of the Internet. Time can only tell. List of Reference Baker H. M. , Cochran, J. D. , Paul, J. A. (2012). Effect of online social networking on student academic performance. Computers in Human Behavior, 28(6), 2117-2127. Berger, J. I. (2010). Profiles of Internet use among ALBE instructors. Adult Basic Education Literacy Journal, 4(3) 151-160. Canbulat, N. , Inal, S. , Kelleci, M. (2012). Internet use and its relation with the academic performance for a sample of high school students. HealthMed, 6(5), 1643-1650. Chen, C. , Hwang, G. , Wu, P. (2012). An online game approach for improving students’ learning performance in web-based problem-solving activities. Computers Education, 59(4), 1246-1256. Chen, S. (2012). Internet use and psychological well-being among college students: A latent profile approach. Computers in Human Behavior, 28(6), 2219-2226. Bibliography Baker H. M. , Cochran, J. D. , Paul, J. A. (2012). Effect of online social networking on student academic performance. Computers in Human Behavior, 28(6), 2117-2127. Berger, J. I. (2010). Profiles of Internet use among ALBE instructors. Adult Basic Education Literacy Journal, 4(3) 151-160. Canbulat, N. , Inal, S. Kelleci, M. (2012). Internet use and its relation with the academic performance for a sample of high school students. HealthMed, 6(5), 1643-1650. Chen, S. (2012). Internet use and psychological well-being among college students: A latent profile approach. Computers in Human Behavior, 28(6), 2219-2226. Dodd, B. J. , Antonenko, P. D. (2012). Use of signaling to integrate desktop virtual reality and online learning management systems. Computers Education, 59(4), 1099 -1108. Hwang, G. , Wu, P. , Chen, C. (2012). An online game approach for improving students’ learning performance in web-based problem-solving activities. Computers Education, 59(4), 1246-1256. Kiran-Esen, B. , Korkmaz, M. (2012). The effects of peer-training about secure Internet use on adolescents. Turkish Psychological Counseling Guidance Journal, 4(38), 180-187. Korkmaz, O. (2012). A validity and reliability study of the online cooperative learning attitude scale (OCLAS). Computers Education, 59(4), 1162-1169. Otaibi, K. N. A. (2012). Attitudes towards the use of the Internet. Psychology Research, 2(3), 151-159. How to cite Internet and Education: Positive or Negative Aspect?, Essay examples

Capital Budgeting Analysis for Riverlook- Free Samples to Students

Question: Discuss about theCapital Budgeting Analysisfor Riverlook Packaging Inc. Answer: Introduction Newlook Packaging Inc. is considering expansion of its current production capacity in order to supply innovative packaging to a pharmacy supermarket chain. For the purpose, the company will have to make long term investment in purchase of a machine and inventory. In return the project will generate additional revenues and also incur additional expenses like cost of sales, sales and administrative personnel expenses, opportunity cost of loss of rent, decrease in sales of existing products. Considering all of the above revenue and expenses, a capital budgeting analysis has been performed to advise the company on the acceptability of the project depending upon its profitability and required rate of return and the payback period. In carrying out the analysis, certain assumptions have been made which are discussed below: The cost of feasibility study is a sunk cost and hence has not been considered as an expense in the analysis The increase in working capital is assumed to have been recovered in the last year of the project. Both inventory and net receivables. Depreciation has been charged @ 14% on the total cost of machine which includes purchase price, transportation costs, warranty costs and installation costs. After tax salvage value of the machine has been considered in year 6. Tax benefit on opportunity cost of loss of rent on existing production lines, decrease in sales has been considered in the table of cash flows. WACC @ 18% has been considered for discounting the cash flows. Capital Budgeting Analysis Some of the prominent capital budgeting techniques were used in analysing the investment decision of the company which inclde Net present value, Internal rate of return, Profitability index and Payback period. On the basis of the results of these techniques, the final recommendation of wether to proceed with the project or not has been given. NPV NPV is the difference of present value of all cash inflows and the cash outflows. A positive NPV means the project will add value to the company to the amount of NPV (Titman, Martin, Keown, Martin, 2015) NPV = $1,442,760 Discounted Payback Period It is the number of years required to recover the initial investment by discounting the future cash flows Year Present value of cash flows Cumulative cash flow 0 -$25,00,000.0 -$25,00,000.0 1 $8,12,033.9 -$16,87,966.1 2 $6,88,164.3 -$9,99,801.8 3 $5,83,190.1 -$4,16,611.7 4 $4,94,228.9 $77,617.2 5 $4,18,838.1 $4,96,455.3 6 $9,46,304.4 $14,42,759.7 Discounted payback period = 3.84 years Profitability Index PI is the ratio of sum of all discounted future cash flows to the initial investment. PI = 3,942,760 / 2,500,000 = 1.6 IRR It is the discount rate at which the value of NPV is 0. An IRR greater than the discount rate is desired in a project. IRR = 36% Recommendations Quantitative Factors On the basis of the results of the above techniques, it is recommended that the company should go ahead with the project. The company requires a discounted payback period less than 4 years, the discounted payback period is 3.8 years which is less than 4, hence project becomes acceptable. The NPV of the project is positive. For a project to be acceptable, it is necessary for the NPV to be positive as positive NPV reflects profitability and the amount of NPV denotes the value added to the company. The PI should be more than 1 and it is 1.6 for the project. The IRR should be more than the discount rate; here the IRR is 36% which is more than 18%, thus making the project acceptable. On assessing the viability of the project after contributing 2% of the sales revenue to the RD, it was found that though the NPV remains positive but the discounted payback period increases to more than 4 years. And since the company requires a discounted payback period of less than 4 years, hence the company cannot go ahead with the project in this condition. Qualitative Factors The project is being opposed by consumer protection group as the packaging is 3D illusion which is very attractive for the children. However, in order to overcome this issue, the company should clearly mention the quality specifications of the product inside. This may save consumers from being mislead. After satisfying the consumer protection group, the company should go ahead with expansion of its production line. Project Risks One of the major risks in the project is estimation of the discount factor. The company has used its WACC as the discount rate. However, the company is producing a different type of packaging and hence the risks involved may be different from the company risk. Therefore, it is better to use a discount rate which completely incorporates the risks involved in this particular project (Drake, Ferguson, 2008) Reference Drake, P., Ferguson, G, (2008), Capital Budgeting and Risk, Investment Management and Finance Management, John Wiley Sons, Wiley Online Library Titman, S., Martin, T., Keown, A., Martin, J., (2015), Financial Management: Principles and Applications, 7th Edition, Pearson Australia

Social Classes and Class Structure

Introduction According to Karl Marx, analyzing social classes and structures as well as variations in the structures are critical in understanding modern capitalism other social systems or even modes of production.Advertising We will write a custom essay sample on Social Classes and Class Structure specifically for you for only $16.05 $11/page Learn More Marx and Engels argue that the communist in the manifesto ‘†¦the history of all hitherto existing in the society is the class struggles† (Marx and Engels 35). Analyzing class distribution and struggles is relevant in establishing knowledge about capitalism. Social classes are divided into two main classes with distinct features one comprises the owners or possessors of property as well as the means of production. This group performs the role of production. The other factor is concerned producers and controllers of the surpluses in relation to human social labor. The economic factors in t he modern world govern social relationships in capitalism than it did in ancient times. This paper therefore discusses stratification and conflicts that exist in society. It bases on the statements made by Marx in scholarly works. Relevance of Marx Ideas Divisions in Capitalism Earlier societies consisted of several sections or clusters that can be perceived to be classes. They were not classes parse but elites not specifically based on economic factors but also incorporated other things such as priesthood, knights or military elite. In the modern society, other classes of people such as capital owners, petty bourgeoisie and peasants are incorporated in the production process.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More In spite of Lumpen proletariat existing, they are not primarily in terms of the dynamics of capitalism or its expansion and development. Bourgeoisie The bourgeoisie controls the means of production such as capital and labor. The capital exploit the workers by misusing their labor meaning that they produce much but are paid less. They utilize the surplus value created from employment of labor to accumulate and expand their capital. Owning massive resources is not equivalent to possessing capital power and labor; it does not make an individual to be bourgeoisie. To be a capitalist or member of bourgeoisie class entails the ownership of huge capital, active participation in capital accumulation, using capital to organize production, employ and exploit labor and finally make the capital self regulating by using the surplus value to continue the cycle of capital accumulation (Marx and Engels 48). Bourgeoisies began in cities of medieval Europe. This was during the development of mercantilism, artisans and manufacturing. The main aim of economic survival for the people was increase wealth through trade and commerce. The bourgeoisies needed much freedom in ma rketing activities and economic expansion activities. Capital ownership was achieved by labor employment (industrial capital) while for some it was acquired through trade (merchant capital). Those who employed workers to create and expand capital succeeded in acquiring capital consequently leading the sector of bourgeoisie.Advertising We will write a custom essay sample on Social Classes and Class Structure specifically for you for only $16.05 $11/page Learn More The proletariat The workers only own their labor implying that they earn their living through their ability to work. They do not own any resources in form of capital meaning that they own nothing apart from their hands, bodies and minds/skills. The Proletariat works hard to sustain their lives and provide basic needs to their relatives and other dependants. They have to seek employment if they are to continue coexisting in the society. For an employee, working for a capitalist is not peaceful i nstead; the kind of relation that exists is exploitative in nature because the worker performs many activities with insufficient returns. The exploitative relationship between the worker and the employer is cumulative meaning that it keeps on repeating itself. The capitalists accumulate wealth by underpaying the worker (Marx and Engels 50). The workers produce goods and services that belong to the capitalist meaning that workers are also properties of capitalists. They produce goods that create surpluses to the bourgeoisie but they remain in poverty. Exploitation occurs in every day’s production process, which ends up restricting workers from acquiring wealth and regenerates the best working environments for further exploitation (Marx and Engels 50). The existing mode of production is arranged in such a way that the property owners continue enjoying better opportunities while workers continue occupying their current positions.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Capitalists accumulate the excesses obtained in the production process by workers. The intersection point between workers and capitalists is the production process. The capitalist who create struggles and intrigues hence causing tension in the society exploits the workers. Alienation of Proletariat Although the workers are the direct producers of goods, they are slaves of the goods they produce. The produced good has more value than the worker does because they are offered maximum security and stored in safe places. The workers produce goods that they do not consume, they produce for others. The increase in product value decreases the viability of the workers. The worker ends up being treated the same way goods are treated, treated as equals. Workers are perpetually pushed to the periphery leading to alienation from the process of production. The way workers relate to the whole process of production leaves a lot to be desired because the relationship is unnatural and uncalled for. T he workers never find satisfaction because they satisfy the interests of other individuals (Capitalists). The worker views the whole process of production as forced labor because actually it is inhuman. The worker ends up being alienated from the self because of the last two forms of alienation. The worker portrays two personalities; one is the feeling of belonging to capitalism because the worker is separated from real consciousness. In the other hand, workers perceive themselves as human beings ((Marx and Engels 54). The last form of alienation that dissatisfied Marx is alienation from others implying that the worker is separated from other people. Workers cannot relate normally to others because individuals with separated self cannot interact in accordance to societal norms. They view others as properties of capitalism. It is at this point that Marx noted with finally that only a revolution would salvage humankind from all these troubles. Social Stratification: Marxist Perspectiv e Marx observed in his statements that capitalism brings about differentiations in society. The rich are at the top while the poor are at the bottom perishing in great poverty. In modern capitalistic societies, classes differentiate people. According to Marx, the capitalistic culture is a divisive force not an integrating one. The existing social groups are differentiated in property meaning that some benefit more than others do. The owners of the means of production who enjoy power, prestige and luxurious life occupy the higher positions. Social stratification basing on property is found in all human societies. For societies to survive therefore role allocation is indispensable. Society attaches unequal rewards to social positions because people differ in ability and positions differ in terms of importance. Unfortunately, the important positions benefit the elite (Marx and Engels 56). There is a heated debate on whether unequal rewards function to motivate talented individuals. Gen erally, social stratification basing on capital is a mechanism in which some exploit others. The elite uses the institutions of the state to advance their interests, in fact Marx termed the state as the committee of dominant class. Those with highest rewards enjoy superior life chances such as access to high education, quality housing and special Medicare. Those who occupy important positions erect barriers to recruitment of others into comfortable positions. They use capital power to restrict access to their positions by creating unnecessary demands to the position services. The different rewards exist to propel hostility, suspicion and mistrust. It gives the low class the feeling of exclusion from larger society leading to formation of solidarity, which might cause tensions and more conflicts with threats of revolutions. Conclusion The statements made by Karl Marx serve to describe how people should liberate themselves. Liberation would be achieved through people’s consciou sness. People will arise up against the existing mode of production because of its social injustices. The mode hands a few the power of investment while the majority survive at the mercy of the owners of the means of production. The state cannot liberate the masses because the capitalist to enhance self-interests uses it. Exploitation and alienation are the most pressing issues among the workers; they are the same things that disillusioned Marx to an extent of calling for a revolution to guarantee mass happiness. Work Cited Marx, Karl and Engels, Fredrick. The Communist Manifesto: introduction by Martin Malia, New York: Penguin group, 1998, pg. 35. This essay on Social Classes and Class Structure was written and submitted by user Lawrence Pena to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.