Analysis using Porter’s five forces model in Marketing Free Essays

On analyzing the case we will seek to look at two relevant barriers to entry; namely, product differentiation and economies of scale. The economy of scale refers to the decline per unit in product cost as the volume of production increases. Levi’s could have exploited opportunities to outsource their production facilities where labour is cheaper, in order to mass produce and have a cost advantages. We will write a custom essay sample on Analysis using Porter’s five forces model in Marketing or any similar topic only for you Order Now Volumes of jeans have been produced in this market because other labels such as Arizona Jeans have exploited the opportunity. If they exploit the opportunity it means that they could produce for less and sell at a higher cost to their profitability. The Levi’s brand has product differentiation because there is a history of brand loyalty; the product carries enough clout to justify a reasonable price premium. They had embarked on a project to create a niche market to attract higher income customers who were willing to pay a premium for a perfect fit. In this case the threat would be brand loyalty because there are a lot of producers of jeans. Threat of Rivalry Threat of rivalry includes all distributors and stores that sell jeans. Example of stores is the likes of JC Penny stores who were once a business alliance, they have sought out cheaper alternatives such as the Arizona brand of jeans and have become their competitor; there is also Gap, Lee and Wrangler. Each of these brands has their own market or customer base. With all of these competitors in the market there is likely competitive pricing for the product. Threat of Substitutes There are other forms of clothing that can substitute for jeans example cotton, linen and other forms of material that makes clothing. In this case though Levi’s has created a â€Å"personal pair for a perfect fit† this proposal has created the niche market for Levi’s through a jeans customization program with their strategic alliance partner Technology Corporation. With this partner they will be able to achieve a competitive advantage. Threat of Suppliers Threat of suppliers all depends on the amount of raw materials. Since Levi’s now has a strategic partner, Technology Corporation they are the ones who take the orders and manufactures the customized jeans at their location. The threat is that they have to rely on another organization to complete the process at a separate location. The benefit though is that this company is a joint venture where each partner has a vested interest in the success of the business thus minimizing risks. However; on the other hand the partner may decide to cheat if they see a more valuable venture for themselves in starting their own line of business. There is also the threat of an increase salary and benefit for employees as well as retention of trained personnel in the area of sales and manufacturing. Threat of Buyers Threat of buyers relies on the marketing of the brand. If Levi’s has a good marketing strategy then customers and suppliers are more likely to purchase their goods. The company has begun to engage in a joint venture with another company therefore once they start receiving orders they will be able to meet the demand to supply stores and retail customers alike. According to the case, the brand Levi is one of the most recognizable brands worldwide since the 1950’s. The jeans had established a political and ashion statement as an American icon. Levi’s has become synonymous with the term â€Å"authentic,† â€Å"genuine,† and â€Å"original. † They are the largest brand-apparel company in the world and the number one purveyor of blue jeans. Levi’s has an image of quality and durability. The image of the company is valuable and rare. Perhaps no other firm has been able to duplicate the Levi brand and the firm uses this image to their competitive advantage as not many firms are able to imitate that image. Despite competetition from low cost rivals who are able to produce more cheaply at overseas facilities, Levi has organized its cost structure and business by using technology and joint venture to their advantage. They have established value creating activities by way of market revitalization and have established a corporate reputation, established links with their suppliers and buyers and invested in high technological equipment and information support systems. How to cite Analysis using Porter’s five forces model in Marketing, Papers

Capital Structure of Aveo Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Capital Structure of Aveo. Answer: Introduction The most important decision that is made within a company in the quest to maximize its value is usually the decision on which products to manufacture and / or which services to offer, however, the decision on how to finance the investments in those assets that allow offering such products and / or services (eg in machines and equipment), is often seen as a minor or secondary decision (Miglo, n.d.). This paper intends to emphasize the importance that financing decisions can have on the value of a company, without forgetting that the expected results will depend considerably on the assumptions that are made about the capital markets and the agents that operate in these markets. The capital structure of a business is the combination of debt and capital that an organization uses to Capital structure of Aveo in the past 5 years It is time to review how the capital structure of a firm behaves in the presence of taxes. To that end, we will continue to use the theoretical framework that Modigliani and Miller developed in his article: The Cost of Capital, Corporation Finance and the Theory of Investment published in 1958 (Bena and Hanousek, 2006). With a very strong balance sheet, the investors look at various things in the balance sheet to invest in the company. There are two measurements for evaluating a companys strength. The first one is the capital structure and the second is the working capital of the company. Aveo has had a very good performance in terms of asset performance of the company and therefore has had good runnings with the investors. For purposes of the report, we shall analyze the company structure of Aveo Ltd for the last five consecutive years (Agarwal, 2013). For capitalization, the company has a record of long-term and short term structures of capital which are permanent in the long term and are a combination of debt and of equity. Aveo has most likely concentrated on keeping a healthy record of equity as opposed to capital debt of the company. This is a clear indication that the company is financially healthy as the yardstick for debt to equity ratio of any company according to IFRS and IAS is 1:1. Aveo ltd equity comprises of preferred stocks and retained earnings which are the inputs of shareholders equity on the balance sheet account. Aveo equates its debt with its liabilities; however, there is a major difference between operational liabilities and the debt liabilities. The difference is that debt liability forms the capitalization component of a company capital structure. Short term and long term debt form the debt component of a company (Martin and Baker, 2013). Short term debts mostly comprise notes payable. The golden rule is that long term debt should take up two third of the total debt figure according to the prudent principle in accounting. Short term will take the remainder. 2012 2013 2014 2015 2016 Total debt/Shareholder equity 2574/701.8=3.7:1 2183/669.6=3.16:1 1840/853.2=2.16:1 1887.2/918.4=2.0:1 2428.5/1072=2.2 The analysis in the figures above indicate that the debt to equity ratio in the five years have been very high. While the recommended yardstick of debt to equity ratio is 1:1, Aveo ltd remains to have a high ratio in terms of debt to equity ratio. In the year 2012, the debt to equity ratio was 3.7:1 which was 3 times higher than the recommended threshold. This is not optimal at all. In 2013, the ratio dropped albeit marginally to 3.2: 1 as well as in the year 2014. This was an improvement in terms of financial management despite being high for theaccounting standards. In the financial year ended 2015, it dropped to 2.0:1, although not optimal, it seems the company had put in place measures to tame the high debt to equity ratio. This shows that the liquidity of a company is improving (Brown, Liang and Weisbenner, 2006). This is also the case in 2016 where the debt to equity ratio was 2.2: 1. This shows that in all the 5 financial years the debt to equity ratio exceed the yardstick and this is not good for the investors in Aveo ltd. Optimum capital structure The assumption in prudence use of leverage or debt is that the management can earn more on borrowed money to the amount of interest and fees expense paid on these funds.If a company in a highly competitive environment, is hobbled by high debt , the company may find its competitors taking advantage of the problems facing the company to grab more market share. But if there are taxes, is the irrelevance of the capital structure maintained? To answer this question, let us imagine that the cash flow (FC) of a company is similar to a pie. That cash flow, brought to present value with the appropriate discount rate, will give us the value of the firm. In a taxed world, a company without debt would have a CF like this: (Brown, Liang and Weisbenner, 2006) Dividend history and policy The financial value of the company, that is, the value of the shares, can be expressed as the current equivalent of the expected dividend stream, valued at the required return (ke): The model is based on the reasonable assumption that the dividend is the principal source of shareholder remuneration but, please note, it does not pre-empt that it should be immediately recognized: all dividends expected over the investment horizon are included, as well as the price which is expected to be able to sell the T share; retained earnings will revert to future dividends and also to terminal value because reinvestment will cause the company to grow at a rate g = ROE (1 - pay out). 2012 2013 2014 2015 2016 Dividend paid (in millions) 21.1 17.7 - - - Arguments in favor of investing in companies that do not distribute dividends (Chen, 2005) In Aveo Ltd, the company cannot afford to be capitalized by distributing their dividends to the shareholders because of their investment need. Reinvestment is done in bid not to fall behind their competitors and to give the shareholders maximum value in terms of shareholders value for the future. In many cases, the company like Aveo will sell its shares in order to have a tax advantage where dividends are subject to the IRPF. Arguments in favor of the distribution of dividends This is the other side of the coin, where shareholders can sketch a smile every three months. The perspective from this position is totally different from the previous one, where it is preferred that the money earned with the contributions made by the shareholders be returned to them, since in a certain way these benefits belong to them. In this way the shareholder has the freedom to choose what to do with the liquidity obtained. Pay-out Another fact that we usually take into account when we intend to invest in a company that distributes dividend is the Pay-out. This is the part of profits that the company destines to dividends, so it will always be advisable to take it into account since, depending on the situation in which the company is, more or less dividends will be distributed. Where are the profits of companies that do not distribute dividends invested? The profits that the company obtains and are not destined to the distribution of dividends do not have a specific destiny, each company makes the most appropriate decision as to where it has to invest this money, although usually this destination is usually the same for all the companies7. For example: to ensure greater liquidity, to have a working fund to help us in a difficult situation, etc. But we must also take into account that there are shareholders who have deposited their trust and money in the company so that it can carry out its activities, so the reward to these shareholders has to come from a part of the profits (Graham, n.d.) Dividend history for the past 5 years The quality of dividends distributed is directly proportional to the quality of financial reports produced. The dividend structure is commensurate to the profits received for the company. Aveo ltd has not paid out dividends for the last three years. In fact the last dividend paid was in the year 2013, the debt to equity ratio has also reduced in those years. Aveo ltd has not paid out dividends for the last three years, and its debt equity ratio has reduced in those three years (Vandekerckhove, 2012). This report discusses the impact of dividend payments on company value, whose maximization, remember, is the financial objective. Modigliani and Miller demonstrated that, under certain conditions, shareholders should be indifferent between the payment of dividends and the capitalization of results; however, some companies have turned this pay into an essential element of their relationship with investors. Others, on the other hand, maintain a systematic policy of reinvestment, without their actions being penalized by investors. Know the complete process that must be followed to make successful decisions in Financial Investments. Dividend distribution Problems in individual decision-making are mainly due to two causes of fear of decision making and thoughtless decision-making (Vandekerckhove, 2012). Attractiveness of Aveo Australia ltd to an investor Aveo is a very attractive company to invest in. it has had its fair share of troubles especially in dividend payout but remains a very attractive company for investors nonetheless. The dividend policy, and its broader expression as a self-financing policy, is closely related to both the financial structure and the investment decisions. Retained earnings are a source of financing that, depending on the preferences of the company and its owners, can make growth possible by supplementing or supplementing debt or other sources of self-financing, such as capital increases. Self-financing is, in fact, the preferred source for many R D-intensive companies, and / or latent opportunities (Graham, n.d.). Regarding how dividends are canceled Brealey and Myers point out: The dividend is fixed by the company's board of directors. The announcement states that payment will be made to all shareholders who are registered on a certain closing date. Later, about two weeks later, dividend checks are sent to shareholders. Dividends can only be declared by the board of directors, which then has the authority to order the payment of a dividend. If the directors or board of directors decide to declare a dividend, they must take appropriate measures to pay the members at a certain date (Vandekerckhove, 2012). Aveo ltd profitability levels are high showing that investors can be attracted by the levels of profit that the company is having. Although attractiveness of a company can be measured using different yardsticks, profitability, liquidity and the companys general stability remains the key areas of focus for the investors outlook (Graham, n.d.). According to this approach, the shareholder's profitability in any period t is the sum of the dividend yield and the profitability accrued by the change in the value of the shares: so that the model does not establish any express priority between dividends and retention. This result has some logic, because the value of the company's asset is the current equivalent of free cash flow, discounted to the weighted average cost of capital, and neither of these two variables depends on the distribution policy (maintaining the presumption that the decision involves a trade-off between paid dividends and new capital) Nor does it pre-judge that both profits (dividends and capital gains) are strictly equivalent: in fact they are not, because the latter are subject to risk, hence a financial valuation and a discount rate with risk. Accordingly, in a first approximation the effect of the dividend policy on the value of the enterprise will depend on the future impact of the retained earnings: to the extent that the incremental result provided by the domestic reinvestment offsets the risk and the time (preference for liquidity), shareholders will be willing to waive their current dividends in exchange for future (incremental) dividends. Conclusion Aveo is a good company to invest in. It is clear, that the cash flow of the business, will be shared by the shareholders and the State. Then, the present value of what is left to the shareholder, would be the value of the company, or otherwise seen, Vu = E, where Vu is the value of a deleveraged company and E is the equity (Vandekerckhove, 2012). References Agarwal, Y. (2013). Capital Structure Decisions. Hoboken: Wiley. Bena, J. and Hanousek, J. (2006). Rent extraction by large shareholders: evidence using dividend policy in the Czech Republic. Prague: CERGE-EI. Brown, J., Liang, J. and Weisbenner, S. (2006). Executive financial incentives and payout policy. Washington, D.C.: Divisions of Research Statistics and Monetary Affairs, Federal Reserve Board. Brown, J., Liang, J. and Weisbenner, S. (2006). Executive financial incentives and payout policy. Washington, D.C.: Divisions of Research Statistics and Monetary Affairs, Federal Reserve Board. Chen, A. (2005). Research in finance. Amsterdam: Elsevier JAI, . Graham, B. (n.d.). The intelligent investor. New York: Collins. Martin, G. and Baker, H. (2013). Capital structure and corporate financing decisions. Hoboken, N.J.: Wiley. Miglo, A. (n.d.). Capital structure in the modern world. Vandekerckhove, W. (2012). Responsible investment in times of turmoil. Dordrecht [u.a.]: Springer.

Austria 17th 18th centuries essays

Austria 17th 18th centuries essays In my paper I will examine the absolute monarchy of Austria during the seventeenth and eighteenth centuries. I shall focus on the on the power of Austria, its foundation, preservation, and expansion. Lastly I will take into consideration the relationship between the classes, the growth of the power of state institutions, and some of the consequential figures in the evolution of absolute monarchy in Austria. The foundation of absolutism was the theory of the divine right of kings. This theory maintained that the monarch was God's representative on earth. In reality absolutism was a closer working relationship with the nobles in order to maintain control. Ensuring the power of the nobles meant solidifying his authority. The bureaucracy began to reorganize, making it more effective on the local level. Local and national government began to meet on a regular basis. This was done by dividing the monarchy into ten units, then dividing it further into ten subdistricts. Kreishauptmann were the administrative heads of each district, appointed by the King to work at the local level. All this helped to extend the monarch's power to the far reaches of the domain. To the people this basically meant that not only was the king a supreme ruler but he could emphasize his will with armies of unmatched size giving the idea of absolutism an illustration and an authenticity never seen before. With this need for a standing army came the need for new funds. These new funds gave way to a new system of tax collection. Throughout history the war and taxes have gone hand in hand. The goal of every monarch was to have independent power and only economic independence could make that possible. Maria Teresa (r. 1740-1780) won approval of the realm to administer property tax on all subjects. These new funds were used to refo ...

In an Age of Violence essays

In an Age of Violence essays School shootings in Moses Lake, Washington; West Paducah, Kentucky; Jonesboro, Arkansas; and Littleton, Colorado spark some serious questions throughout the US today. Schools beefing up security all over the country strive to protect their children from these horrific acts. Schools hire guards, put in metal detectors and surveillance cameras, search through students personal belongings, and even bring in trained police dogs to counteract these violent events. This added security cant be the best solution for the problem, and parents and teachers obtain a false sense of security. Schools should take a more cool-headed approach and not turn schools of today prisons of tomorrow. Society needs to take less drastic measures and step back to look at the problem before blindly trying to fix it. Not all of these hard-nosed attempts to stop school violence have been rationally thought out. School districts driven by fear rely on faster and cheaper fixes; hence the drug dogs, cameras, a nd searches. Adults always tell their children they want them to have responsibility, but by putting up all these restrictions and security measures their responsibility is stripped. Schools use heavy-handed law enforcement tactics out of fear. Its not only that, they also use these tactics against students who do nothing wrong. This interrupts the academic process and students feel like criminals in these restricted fortresses of learning. Statistics show these additional security measures are not necessary. One of these statistics states since 1992 there have been 82 children killed in school shootings. This number sounds large but when you look at the 99 children that were killed when an automobiles air bag was deployed the number doesnt seem as great. (Deaths) School shootings account for less than one percent of the more than 5,000 firearm related deaths of children under the age of nineteen each ye...

Idea paper Pre-thesis proposal Essay Example | Topics and Well Written Essays - 500 words

Idea paper Pre-thesis proposal - Essay Example For example, in a study conducted by April Saathoff, she mentioned that some physicians find the system too difficult to use, while others find it demeaning to enter orders in the system, a job typically allotted to ancillary staff (Saathoff, 2010, p.72). Recent research highlights the benefits that CPOE offers and reiterates that health care organizations must utilize information systems in order to ensure sustainability and continued development. There is a recent consensus on the capability of CPOE to reduce common order errors, but many professionals say that it is not the cure-all solution to all the ills of the health care system. To ensure the success of CPOE implementation, three things must be done: â€Å"(a) [ensure] culture change that allows for risk-free reporting of errors by employees, (b) the use of technology and CPOE systems, and (c) smaller incremental changes [which could potentially affect physician efficiency]† (Sengstack & Gugert, 2005, p.39). When creating an implementation plan, administrators must consider not only the technical requirements of implementation, but also a factor in physician acceptance of the system. If concerned health care personnel do not use the system, then there is no use to impl ement it. It is important for administrators to create a plan assuring cultural change so that health care professionals will gain motivation in learning the CPOE system and utilizing its features to ensure improved service delivery. The purpose of this study is to understand how the hospitals managed change and ensured that physicians will participate in the use of the CPOE system. Through this study, other health care organizations can gain insights on how they can deal with physician resistance as well as gather insights on the best practices in change management. Its main research question is â€Å"How can health care organizations ensure strong physician participation in CPOE

Sales and marketing PROJECT 213 Research Paper Example | Topics and Well Written Essays - 2500 words

Sales and marketing PROJECT 213 - Research Paper Example ilities around the area like dawn beach, on the beach, Saint Maarten Zoo, Museum of Saint Maarten, Guana Bay Beach and the University of Saint Marten. The property is well situated, and it provides a good place to spend holidays and honeymoon in St. Maarten. People visiting the hotel have fun at the white sand beaches and the blue-green waters (Westin Hotel and Resorts, 2015). The property is located alongside other properties that offer recreation and education services. Some people visiting recreation centres in the area end up spending their nights at the hotel. Dawn beach is adjacent to the hotel about 0.4 km away. The beach is usually busy with people from the area and others from other places of the world. Dawn beach is advantageous because most of the people visiting the beach end up spending at the hotels rooms. On the other hand, people who visit Dawn Beach pollute the environment making most of the people not willing to spend in the hotel. Another property in the areas is Guana Bay Beach, that has the same value with the Dawn Beach. The Museum of Saint Maarten is another property that is important to the hotel. People visiting the museum include students, families, couples and business people. Most of the people visiting the museum spend time at the hotel, eating, drinking and spending at the hotel rooms. The University of St. Maarten has increa sed the population of the area providing more customers to the hotel. The university is located 4.9 km from the hotel. Most of the students at the university come from different countries and spend their free time at the beaches. Students from the University visit the hotel for drinks and launch. The lecturers and staff also use the hotel for the conference and special meeting. The university visitors spend their nights at the hotel (Westin Hotel and Resorts, 2015). In Saint Maarten, there are many hotels that compete direct with the Westin Dawn Beach Resort. The managers and the directors value and rate the

Durkheims notion of movement from mechanical to organic

Durkheims notion of movement from mechanical to organic Durkheims notion of the movement from mechanical to organic solidarity more accurately describes the nature of different forms of social order than does Webers description of different types of authority (Discuss). Introduction: Emile Durkheim has none other than been recognised by many great philosophers to be truly one of the fore fathers of Sociology. As well as being one of the first great theorists to discover the science of society within the field SociologyLaw. In some of Durkheims work his greatest concerns evolves around the concept of social solidarity. His work involved trying to answer the theory of what social solidarity actually is and how it holds society together? Durkheims discovery consisted of two main key stages of focus in order to be able to characterise society. The stages consisted of recognising the importance of appreciating a terminology he called social facts. Durkheim defined social facts as things external to, and coercive of, the actor. These are created from collective forces and do not derive from the individual. While they may not seem to be observable, social facts are things, and are to be studied empirically, not philosophically (Ritzer, 1992: p.78). This consisted in the ways of thinking and acting, as well as being external too, but constraining on the individual that reflects social reality. This Second stage consisted on how he managed to utilise law as an external index, which ultimately lead him to believe that it was the dominant social fact; in order to explain the character as well as the properties of modern society. Within his newly discovered methodology, Durkheim was able to explain how modern western societies had surfaced by solely discovering the development of social solidarity from a mechanical to an organic state. With his theory consisting of law as the external index, he provided the understanding that social development is reflected in the legal development from repressive to restitutive law. Durkheim regards both criminal and civil law as the core of each field, thought his concept of discovering society. Further down the line of his theories he discovers the real place and function for the two types of law. Where as Max Webers study of bureaucracy looks for developing a historical and sociological account of the rise of modern organizations. (Linstead, Fulop Lilley, 2004: p130). He used an ideal type to analysis the appearance of the bureaucracy form of organization. The ideal type, according to Weber, is a tool used to identify the characteristics of social phenomena such as bureaucracies. Weber used the term ideal type in order to make a distinction from other forms of organization (Linstead, Fulop Lilley, 2004: p130). Weber defined the Prussian Church, Army and Civil Services as all being examples of this bureaucratic form. He also saw a powerful instrument of the first order, and considered bureaucracy as embodying a powerful combination of knowledgeable calculable basis, and the power case would dare the bases of democracy (Nicos, 1975: p38). It is definitely a great idea to explore Webers theories; in conjunction to Durkheims as this essays main purpose is to investigate why Dur kheims theory more accurately describes the nature of different forms of social order, more so over than Webers theory of bureaucracy. This comparative analysis of both sociologists will help to describe the principal characteristics of the Weber Ideal Type bureaucracy, by discussing Webers concept and ideas about the roles of power and authority within the bureaucratic form of organization. In order to achieve this within the topic of discussion, certain objectives need to be addressed. Firstly, by giving a brief introduction to what Weber believed to be the ideal type of bureaucracy. Secondly, by understanding the relationship between power and authority, Weber believed in a theory that consisted of three major kinds of different authorities within power that need to be studied correctly to understand the module of Bureaucracy. Max Webber made excellent contributions to the field of sociology by his ability to witness and analyse various patterns which were quickly altering the standard way of life. His ability to find hidden patterns which the general person could not discover through observation, gave him the ability to discover new theories. These involved the ability of understanding new markets and businesses evolving worldwide by observing them in action. In his main observations and analysis he noticed the markets and businesses were actually unifying people together. His theories and concepts through observation described the way he witnessed how modern science was becoming the new method of conducting business. Through his observations he compared the different societies he witnessed, which gave him the ability to analyse how the forms of government were beginning to evolve. As one of his main theories he believed sociology had to apply scientific methods that would elevate sociology to level of so cial science instead of just a being another branch of philosophy (Hughes Kroehler Vander Zanden, 2002). Discussion: According to the fact of Durkheims distinctive approach in explaining the theory of social solidarity and the reason why society has been made possible. Has ultimately given, Durkheim the recognition as being regarded as the first social theorists to truly discover the meaning of society. His persistence involved scientifically studying society through the means of observation and measurement rather than the general approach of focusing on one individual at a time. As introduced above, the concept of social facts play an important role in Durkheims analysis as they epitomise an impartial account of the beliefs and values of society taken cooperatively. The mere theory that social fact is irrepressible to alteration makes it an exceptional tool to clarify the concept of social solidarity. Within Durkheims work he identifies two types of solidarity, mechanical and organic. He claims that mechanical solidarity will progressively loses ground as society develops and becomes more complex such that organic solidarity will emerge as the preponderant form of solidarity. Hence in order to be able to understand how modern western societies have evolved over the years, we need to appreciate this advancement of mechanical to organic solidarity, as well as the characteristics and in addition the properties associated among each state. Mechanical solidarity was discovered by Durkheim to exist in more primitive, pre-industrial societies, where division of labour is largely undifferentiated and there is little interdependence between its members (Clarke, 1976: pp. 246-255). The social glue that holds society together is the homogeneity between its members, which Durkheim termed as the horde (Emirbayer Cohen, 2003). This is generally characterised by the dominant concept of the collective consciousness, which is a form of social fact that represents the totality of beliefs and sentiments common to the average members of a society (Horowitz, 1982). This collective consciousness provides the moral basis for which members within society must be judged upon according to their actions and beliefs. Individualism is virtually non-existent and not tolerated as it represents a stray from the common bond. However, Organic solidarity has still been proclaimed by Durkheims theory to exist in more progressive and industrial societies that happen to have an extensive and highly distinguished division of labour. Organic solidarity is classed as the best form of solidarity that characterises the western modern society. The collective realisation under mechanical solidarity weakens due to the reason that greater emphasis is placed on individualism as portrayed by society being viewed as a system of different organs each of which has a special role, and which are themselves formed of differentiated parts (Barnes, 1966). This type of solidarity has the characteristic ability of increasing interdependence between members as a result of the phenomenon of complementary differentiation. This refers to the need for members to depend more upon one another as each have differentiated roles from the division of labour, which if separated will result in the crumble of society. Therefore it is clearly v isible that interdependence is the key that forms the social glue in an organic society. The decisive factor which implements the movement from mechanical to organic solidarity is principally the concept of social density. This refers to the increased amount of interaction, an in turn interdependence, between members of society as a result of changes within an organisational structure of societies in a longer period of time. This is according to an increase in population growth, advancement in technology, the rapid developments of towns and their growth in geographical concentration. It is this condensation of the social mass which characterises modern western societies and enables them to surface. Despite being able to identify the two types of solidarities, Durkheim finds himself faced with the most difficult obstacles to his science of ethics that is, since social solidarity is a wholly moral phenomenon , it is not capable of being exactly observed and measured (Barnes, 1966) . Therefore Durkheim substitutes law as the external index, a visible symbol, to measure and reflect all the essential varieties of social solidarity (Elwell Frank, 2003). Carrying with it the characteristics of being coercive, real, objective and observable, while also being the most stable and precise element in society, the law is the pre-eminent choice for an external index (Barnes, 1966). Max Webers concept and ideal theory to make bureaucratic control work relied on the focus that managers must have complete authority to dominate control of power over the organization, as well as being the centre focal point of the larger society. Weber summarized three main types of authority which in-depth explain the management and control in a large organization. The first type was known as Charismatic authority, which applied to organisation whose foundation is the dedication to the worthy character or the courageous of an individual and the command which defined by her or he. Political leaders have been able to get this kind of response too. For example, former US President Bill Clinton has often referred to as having charisma and charisma can be often found in revolutionary military organizations. The most advantage of charisma is its great power, which is rest on the intensity and strength of the force which lie absent-minded in the goal of every human (Kieran 2004 p55). On the other hand, charisma, in order to transform the environment of social life, thus in this way changing peoples attitudes toward them, then the greatest change of central views and directions of individual action would appear which with completely new intentional and controversial bias of the whole attitudes toward diverse problems of the world (Weber 1968 p977). The second type is Traditional authority; this is based on the cases that occurred before, also means the precedent or custom. It is always more or less mixed with magical elements, Weber persist in that authority involves legitimacy in the sense of duty to obey indicates that we are dealing with an aspect of superego functioning. Church can be example of this kind authority, in this circumstance, managers cannot be impertinent to their members or break the images expected of them. Finally, the third type of authority being Rational-legal, this is based on followers belief in the legality of rules and the right to those who have a position of authority in order to issue commands (Daft, 2004: pp.294). The role of this authority can be described as it is the foundation for both management and creation of most government organizations. As well as the most common fundamental of control in organizations worldwide, worth to detail, ration-legal authority is the form which is most widely used to govern internal work activities and decision making, especially in the large organizations. Evaluation: Essentially for Durkheim, one only has to classify the different types of law to find therefrom the different types of social solidarity which corresponds to it (Spitzer, 1975). This is where in fact the whole study of criminal and civil law falls into place. As mentioned in the beginning of the introduction above, each of these laws acts as the essence of repressive and restitutive law respectively. Despite the claim that Durkheim makes on the evolution of mechanical to organic solidarity (and in turn the evolution from repressive to restitutive law) as society progresses, the discussion below demonstrates that modern western societies regardless still preserve a combination of these two types of law (Adair, 2008: pp.97-120). The remaining discussion within this essay will focus on the rules and function of criminal and civil law within modern western societies. In addition to proclaiming whether Durkheims theorys and ideas haves truly made him to be recognised as a discoverer of so ciety or not. Weber declares his feelings of believing that the power of a class is not really a very important issue. Weber claims that when there happens to be a struggle for power, only then classes are considered important. Only then when declared they as a part of their class in their actions. Classes alongside with status groups are just unreceptive members in society. Only when a political party solely considers to addresses the class it becomes declared as active. This insignificance of classes dictates Webers direct concept that the economic issues within capitalism do not in fact affect the outcome of authority or the struggle for power (Barnes, 1996). In Webers thoughts he declared that imperialism is not merely a matter of economics. He mainly justified that imperialism was more in fact a political tool. He defined it as a tool of esteem, to be used for the privileged and ways to address nationalism among the masses. Weber was right when stating that imperialism had not been created by capitalism, as imperialism was introduced way in time before the concept of capitalism was discovered. Imperialism however did in fact make an appeal towards all the members of ruling classes. It appealed to the esteem of the old leaders as well as it was declared as the source of money for the new leaders. But the appeal of prestige was by far the more important factor to Weber. Webers views on the concepts and theory of imperialism are an extension of expressing the struggle for power. This led him to being exploited with criticism, for restricting the impact of the economic aspects focus of imperialism during the power struggle. Weber directly d eclared the incomplete functioning of bureaucracy among the impact in created upon individuals. Its prime advantage resulted in efficiently accomplishing goals, which made it awkward in dealing with individual cases. The impersonality which happened to be crucial in attaining efficiency of the organization resulted in it degrading. However the major concern over bureaucracys threat to members of a particular organization had assisted to overshadow its effects on the larger society (Barnes, 1966). Weber became exceptionally troubled about the impact that rationalization and bureaucratization had on sociocultural systems (Elwell Frank, 1996). According to its true nature bureaucracy generates a vast amount of unregulated alongside an unperceived social power. Due to the nature of bureaucracys superiority over other various forms of organization, they have thrived and have now dominated modern societies. Within Webers concepts he warned us of those individuals who control these organi zations, also control the quality of our life, as they are primarily self-appointed leaders (Elwell Frank, 1996). Bureaucracy traditionally tends to result in oligarchy (Elwell Frank, 1996) or the rules placed by the few officials in the hierarchy of the organization. The Larger formal organisations that dominate society always produce a potential threat that social, political and economic power may in fact become rigorous in the hands of those few individuals who have superiority in high positions as well as the ability of being the most influential personnel within these organisations (Elwell Frank, 1996). Webers end accomplishment for society involved the creation of a plebiscatory democracy which had the capabilities of being able to transform capitalism. He believed this change in society would eventually change individual power into a power to be utilised for the greater good for society. Weber disregarded the Junkers in Germany due to their egoist engagements (Norkus, 2004: pp.389-418). He claimed Junkers had only certain set tariffs as well as only following the rules that would benefit themselves instead of Germany as a whole. Although it relied on the individuality of one superiority, Weber was still highly interested in democracy not just for main the reason that consisted of the idea that masses could share the power to rule, but for mainly for the simple fact that it allowed the ability of potential new charismatic leaders to come into power (Kalyvas, 2008). Webers ideal democracy is one that consists of leaders that are recognised through masses, but even then the masses st ill stay clear of the government involvement in letting the leaders rule with superiority (Kalyvas, 2008). Social stratification, according to Weber, was more based on three different ideas: economics, status and power. Further elaboration of his ideas of what constitutes a class, Weber states that a class is not a community; rather, a class is a group of people who share situation is a possible, and sometimes frequent basis for action by the group (Hughe, Kroehler Vander Zanden, 2002). This basically means that just because people may live in the same town or city they are not automatically equal, but they are considered equal when their economic status is compared. Weber suggests that social order can be maintained by separating classes using determining factors such as the three aforementioned: class, status, and social power. Durkheim on the contrary strongly believed a mechanical society operates in a different way than does an organic society. In a mechanical society, the term best suited to describe is jack-of-all-trades. This is because in that type of society, rather than assigning each person one particular duty to perform, most people were able to perform a multitude of tasks and responsibilities (Ritzer, 1992: pp140). Dynamic density, according to Durkheim, refers to the people of a certain society and their role they play in that society. A major problem that arises in dynamic density in a mechanical society is that when a society grows in numbers, conflict arises due to the fact that people will be competing against one another. As a result of the competition, people are given no other choice but to begin specializing in certain areas and only doing certain tasks, thus starting the transformation from a mechanical to an organic society (Ritzer, 1992: pp.190). The collective conscience of a socie ty is the general feelings of the group. In a mechanical society the majority of a group thinks strongly about an idea or belief (Barnes, 1966). Therefore, it goes without saying that in a mechanical society, where there is little individuation in labour, there is also little individuation of the way that society thinks. Also, in an organic society, where there is diversity in labour, there, too, is diversity in the conscience of the society. People in organic societies tend to have differing opinions and feelings on certain issues (Ritzer, 1992: pp.193). Durkheim proposed that the key to maintaining social order in a society is to have that society, if not already one, be transformed into a modern, or organic, society (Barnes, 1966). His reasoning for this is because, in a modern society, there is no competition between the inhabitants because there is a wide selection of areas readily available for each individual to specialize in. He also collaborated with two various types of laws that in fact helped his theory progress, in resolving how to maintain social order. Under a mechanical society, where repressive law is used, a crime usually results in a sever repercussion. An example of this is theft; stealing something of importance may result in the loss of a hand. However, it is much easier to achieve and maintain social order in an organic society because the consequences are less severe and harsh. Using the same example of theft, the punishment may be jail or simply repaying the cost of what was stolen. This is acknowledged as the term restitutive law it helps to maintain order while preventing less fear in the people. Basically, under a modern society there is more freedom of the people and that allows for less disorder. When people are given more opportunities, and are allowed more freedom they are more likely to conform to societys rules because it benefits them greater than if they didnt. Conclusion: Durkheims social theory is unique for the fact that it analyses society through the observation and measurement of scientific concepts and evidence. Viewing in this stance, Durkheims methodology indeed makes him the first major social theorist to truly discover the real meaning of society. As he, unlike many sociologists in his era, he in fact distinguishes himself away from the study of natural and human science in finding the answers for societal existence. Modern western societies, for Durkheim, has come a long way as reflected in the social and corresponding legal evolution, as discussed above. The characteristics and properties of organic solidarity best illustrate the situation of modern western societies, which include the rising emphasis on private individuals and the increase of interdependence between them as a consequence of the division of labour due to social density. In turn Durkheim has recognised a similar development of the function of law, which he sees as a moving target for sociological observation. The above discussion has demonstrated that modern western societies have retained elements of repressive (criminal law) as well as resitutive laws (contract law). Which both share the important function of coordinating growing interdependence by giving their utmost respect for the cult of the individual. The proliferation of regulatory law highlights that notion that social solidarity is not static and confirms Durkheims view on law as the sociological equivalent of a thermometer to continuously reflect reasons for social cohesion. Thus it is important to realise that while Durkheims methodology (i.e the use of law as an index) has managed to provide a tool to truly discover society, one needs to be able tp continuously monitor this index to ensure that modern western societies are duly and truly discovered as well. Webers theory of the bureaucratic form organization is regarded as a representation of a normal process of explanation in society as a whole, punctuating the value of mean-ends relations. An ideal type is constituted by the bureaucratic form of organization. There are many characteristics of this form such as obvious division of labour, higher formalization, and separation of organizational and personal lives, employment decisions are based on merit. Weber suggested that authority can be seen as critical to understanding power, but exercise of authority is different from the power. The power of position within a complete bureaucracy is always considered as exceptional, under the normal conditions of overpowering; due to bureaucracys political rulers face it as dilettantes of an expert. The most advantage of charismatic authority is its great power, which is rest on the intensity and strength of the force which lie unconscious in every human goal. A Church can be example of traditiona l authority, in this circumstance; managers cannot be saucy to their members or break the images expected to them. The role of rational-legal authority can be described as it is the foundation for both management and creation of most government organizations as well as the most common basis of control in organizations worldwide, worth to detail, ration-legal authority is the most widely used form to govern internal work activities and decision making, especially in the large organizations.