The Pestel Analysis Of Construction Industry Economics Essay

The Pestel Analysis Of Construction Industry Economics Essay General Objective: To come up with an eco-friendly construction material using shredded PET bottles as an aggregate (replacing the gravel component of CHB) in the production of an alternative construction material, ecological hollow block (EHB), which could result to a better cost effective product. Specific Objectives: To prepare an industry study of all the construction materials currently being used in housing and commercial developments. To review the waste management system in the Philippines and look for areas that are sustainable sources of PET materials. To identify the current drivers and trends of the real estate and construction industry, as well as the Non-government Organizations (NGOs) in order to explore the viability of introducing the EHB products for their construction needs. To prepare a business model for each market segment, namely: (1) Non-government Organizations (NGOs) and (2) Real Estate Developers and Contractors. Scope and Limitations This MRR is focused on the following market segments: real estate developers, construction companies and NGOs. The study is limited to the Philippines specifically the National Capital Region (NCR) and provinces within a 130 km radius. Other construction materials that have the potential to be used with PET flakes aside from the concrete hollow block are excluded from this study. Central Hypothesis This MRR focuses on the Ecoblock venture into the Philippine market through the NGOs specifically on housing and development programs; and eventually cater to the local real-estate developers and contractors. Hence the desired outcome of this MRR would be a venture strategy considering the economic conditions, market outlook, competitive analysis, risks analysis and capital sourcing. II.PESTEL Analysis of Construction Industry Political Factors President Aquinos State of the Nation Address (SONA) last July 2010 highlighted the importance of Public-Private Partnerships (PPP).  [1]  The PPP was seen as an important strategy for infrastructure development. It has also been estimated that the pipeline of PPP projects (infrastructure projects for transportation, water, power, health, and agriculture) for the year 2012 will amount to USD 5.49B. Another factor that can have an effect on these projects is the upcoming election in the year 2013 that can increase government spending on infrastructure developments. Lastly, the issue of corruption (specifically in government infrastructure projects) is seen as an important political factor in the construction industry of the Philippines. The corruption issues of the Philippines regarding infrastructure was discussed during Finance Secretary Cesar Purisimas meeting with Ernie Bower, the senior adviser and director of the Center for Strategic and International Studies in Washington DC.  [2]  In this meeting, it was cited that the PPPs program of the Philippines will be able to address the current issues on corruption. According to Purisima, the right infrastructures should be accompanied by forward-looking policies for the Philippines to be competitive through highly-viable and promising ventures. It was also made clear that corruption is a major factor that will hinder the gov ernment to increase spending for infrastructure projects. Economic Factors Figure 1. GDP year-on-year Growth Rates, 2006-2011. Source: National Statistic Coordination Board As shown in Figure 1, the Philippines gross domestic product (GDP) decreased from 7.6% in 2010 to 3.7% in 2011. This is due to the negative export growth rates in 2011 that was influenced by the global economic conditions particularly the economic and financial crises in US and Euro countries  [3]  . The domestic factors on the other hand include the decreasing demand and negative growth rate in agricultural production and the under spending of the government in infrastructure projects. Based on the GDP projections of the International Monetary Fund (IMF), Asian Development Bank (ADB) and World Bank, the Philippine economy will slightly improve in 2012 due to the support of growth in private consumption (higher OFW remittances), investment, and government spending  [4]  . However, if the debt woes in Europe will worsen and the recovery of the US economy will not be sustained, the Philippines will experience lower exports and foreign investment that may lead to lower GDP growt h. Considering these factors the Philippine government must be able to increase government spending on infrastructure projects to prevent the economy to slow down further. Figure 2. Peso-dollar rate, Inflation Rate, and 91-day T-bill in the Philippines, 2006 to 1Q 2012. Source: Bangko Sentral ngPilipinas As shown in Figure 2, even if demand in the economy is lower in 2011 due to the lower GDP growth rate, overall prices still increased which was brought about by the increase in prices of petroleum in the global market.  [5]  Looking at the disposable income of Filipinos, if the overall prices increase, the purchasing power will tend to decrease. This might affect the amount of disposable income that might be allocated for house purchase. Based on Figure 2, inflation is lower in the 1st quarter of year 2012. Meanwhile, the 91-day Treasury bill interest rate decreased when the Bangko Sentral ng Pilipinas (BSP) attempted to stimulate economic growth. The peso-dollar rate remained stable due to the increase in inflow of remittances. The stability of the peso-dollar rate is very important in the construction industry due to the fact that some of the materials being used in construction are imported. The instability of the peso-dollar rate will affect the price of these materials. Figure 3. Construction Output (in million Php and share to total GDP) Source: National Statistic Coordination Board As shown in Figure 3, construction output in 2011 went down. This is due to the under spending of the government in infrastructure projects.  [6]  The construction-to-GDP ratio decreased from 5.7% to 5.2%. The increase in government spending can increase the GDP for the coming years. Table 1. Growth in the Tourism Industry, Business Process Outsourcing, and Mining Industry that may Affect the Construction Industry. Year Tourism Industry (Foreign Tourist Arrivals) Business Process Outsourcing (Projected Growth) Mining Industry (Expected Investment) 2010 3.52 M 2011 3.921 M (exceeded 3.74M target) 18% $3.4B 2012 1Q: 2.14M 20% $3.9B Source: Philippine Constructors Association Country Report, 2011. Department of Tourism Growth of other industries will also open opportunities for the construction industry. As shown in Table 1, the tourism industry, the Business Process Outsourcing (BPO), and the mining industry are continuously experiencing growth which may lead to more construction projects. For the tourism industry alone, 47 hotels with 14,000 rooms will be constructed by the year 2013.  [7]   Due to the Philippines stronger financial position, the Standard and Poor raised the Philippines international debt rating to one notch below investment grade (BB+).  [8]  According to the DBS Group, the Philippines can achieve investment-grade credit rating with a year or two. Once this is achieved, more investments will flow to the country. Social Factors The social factors that we will be considering in this study will give emphasis on the population growth rate, age profile, and housing backlog in the Philippines and try to correlate them with the construction industry in the country. Population Growth Rate As of July 2011 the Philippines has an estimated total population of 103.775 million and out of this, 11.86 million reside in the National Capital Region (NCR). The Philippines has an average population growth rate of 1.9% and the NCR has an average population growth rate of 1.78%. Age Profile The majority of the population in the Philippines belongs to the working class (15-64 years: 61.1% or 62,201,170 as of 2010). This is the portion of society who are about to start their own families until those who are about to retire from their respective careers. People in this segment are also the ones who have the capacity to invest in residential developments. Housing Backlog As of 28 December 2011 Philippines housing backlog is currently 3.6 million.  [9]  The government will tap shelter agencies like the Housing and Urban Development Coordination Council (HUDCC), the Housing and Land Use Regulatory Board (HLURB), the Pag-ibig Fund, the Social Housing Finance Corporation, the National Housing Authority, the Home Guaranty Corporation, and the National Home Mortgage Finance Corporation to reduce the housing backlog by 50% with an annual target of 350,000 housing units. To achieve this, the Aquino administration highlighted the need for more PPP programs to use the underutilized government lands. The insufficiency of available funding resulted to this housing backlog. The government needs Php 1.7 trillion to address the Philippines housing needs. In 2011, several typhoons and flash floods occurred in the Philippines between May and September. The Department of Social Welfare and Development (DSWD) will develop recovery and rehabilitation projects for victims of flash floods in NCR and other provinces with a total of 187,008 families. Also, projects will be developed for the victims of typhoons that entered the country, which affected 1.4 million families  [10]  . Technological Factors Last June 28, 2012, the general membership meeting of the Philippine Constructors Association (PCA) was held to discuss the current issues that the industry currently faces. In this meeting, innovation was considered as a driver of productivity. According to Executive Director Cosette V. Canilao, the players of the industry must be able to re-evaluate their resources and processes to make it more efficient, responsive and relevant to the present stringent requirements of the industry.  [11]  Regarding PPP for infrastructure projects, the government must demand from its private partners new technologies that will accelerate delivery time while ensuring public safety. However, Canilao also recognized the fear of being the first to try something different. With this, he emphasized that those players who will not invest in technological innovation might be left behind at bidding time. According to the Department of Public Works and Highways (DPWH), the Philippines may adopt new construction trends in Japan, particularly on the latest technology on roads and bridge construction.  [12]  The construction and engineering technologies from Japan through the Japan International Cooperation Agency (JICA) will help the Philippines build disaster-resilient infrastructures that would mitigate the effects of climate change. Technological innovation in the Philippines doesnt only happen with government projects, private manufacturers of construction materials also try to innovate the products and processes to improve the product offering. Cement manufacturers like the Holcim Group created a green sustainable solution for cement.  [13]  The company is trying to minimize the impact of cement manufacturing in the environment. The company focuses on bringing down carbon dioxide (CO2) emissions by reducing the clinker factor by using mineral components as alternative materials.  [14]  Innovation on the use of raw materials was accompanied by improvement in the process namely: (1) use of alternative fuels; (2) co-processing; and (3) quarry habilitation policy. Co-processing is considered as a globally accepted technology that helps the company process water streams in the cement kilns to properly dispose hazardous industrial wastes.  [15]  The quarry habilitation policy would ensure that the quarry sites can be used productively by the community before they are completely mined out. Holcim Philippines was the first company to submit a Final Mine Decommissioning and Rehabilitation Plan to the Department of Natural Resources (DENR), which will serve as a blueprint in restoring quarry sites. Environmental Factors Land development and construction have a direct impact on the environment wherein land conversion from agricultural to urban and residential greatly reduces bio-capacity (ability of the land to produce food and other resources for the society).  [16]  Because of this, sustainable land development is becoming more important in the construction industry. The World Wildlife Fund (WWF) and Ayala Land, Inc. (ALI) developed an ALI Sustainability Framework to chart, monitor, and report the companys progress in sustainable land development. The increasing awareness about environmental impact of construction activities will eventually affect the way residential and commercial developments are built. In 2006, the Philippine Green Building Council (PHILGBC) was formed as a national non-profit organization through the alliance of building and construction industry leaders from the private and public sector.  [17]  This organization was formed to ensure an ecologically and economically sustainable industry. This resulted to a local green building rating system that is now called Building for Ecologically Responsive Design Excellence (BERDE). The BERDE scheme will serve as a benchmark for all property developers in the country. Last August 17-19, 2011, the first Philippine International Total Green Movement Exhibition and Conference was held at the SMX Convention Center, Mall of Asia Complex in Manila. The joint venture of the Philippine Constructors Association, Inc. (PCA), Global-Link Exhibitions Specialist, Inc. (GESI), Philippine Society of Ventilating, Air-conditioning, Refrigerating Engineers, Inc. (PSVARE), Philippine Center for Environmental Protection and Sustainable Development, Inc. (PCEPSDI), and Society of Manufacturing Engineers (SME) Manila, created the Green Philippines 2011.  [18]  This event featured four exhibit segments on construction (Green Construct), manufacturing (Green Manufacturing), lifestyle (Green lifestyle), and energy (Green Energy). Also, last August 16-17, 2011, the 2nd Sustainable Building Technology Conference was held that invited international sustainability experts to discuss the best practices for a green industry. These events would show that the players in the c onstruction industry are already leaning towards environment friendly development projects. Legal Factors The construction industry is one of the most hazardous and risky occupations in the country. With this, the Department of Public Works and Highways (DPWG), the Department of Interior and Local Government (DILG), the Department of Trade and Industry (DTI), the Department of Labor and Employment (DOLE), and the Professional Regulation Commission (PRC) signed a Memorandum of Agreement last May 4, 2011 to strengthen the campaign to minimize accidents in construction activities. This MOA aims to promote the welfare of construction workers and prevent the recurrence of construction-related incidents, notably the ones that recently killed or severely injured workers early 2012.  [19]  Also, this MOA is an off-shoot of DOLE Department Order No. 13 (which provides the Guidelines Governing Occupational Safety and Health in the Construction Industry) and aims to intensify the holistic and extensive execution of the policies and programs set forth in D.O. No. 13 in construction sites. III. Construction Materials Industry Existing Eco-friendly Construction Materials The construction industry in the Philippines is currently leaning toward ecological friendly materials due to the global campaign to save the environment. The materials that are available range from pre fabricated walls and blocks to bricks that is considered to be the oldest building material used. The pre-fabricated walls and blocks use polystyrene as an aggregate that is added to the concrete mixture to produce a lighter and insulating product. Reinforced fire bricks are also one of the common construction materials that are used in construction of homes. Reinforced bricks are made of industrial wastes such as rice hull, coal ash, silt, mud and clay. Existing Market and Availability The existing market for pre-fabricated walls and blocks are the contractors for commercial buildings and high-rise residential buildings. There are also some contractors that use pre-fabricated materials for home construction but the homeowners still prefer to use concrete hollow blocks (CHB) because of the high cost of the pre-fabricated material. The walls are pre-ordered by the contractor and are sometimes manufactured on site to avoid delivery expenses. On the other hand, the reinforced firebricks are used in home construction. This material is usually specified by the people who belong to the higher class of society mainly because of the price of this construction material. Advantages disadvantages of using existing eco-friendly construction material Pre-fabricated walls are used in exterior and interior applications in building construction. The lighter wall means that the foundations of a building project could be smaller due to the reduction in weight that the foundation needs to support. Installation time for the pre-fabricated wall is shorter compared to using conventional materials in wall construction. The product is smoother and does not need additional plastering (only the joints require additional concrete) because of the smooth finish that these walls generally have. The pre-fabricated walls also serve as good insulators that result to less energy consumption. A notable disadvantage of using this product, aside from the cost, is that the sizes that are available are only limited and could not be cut to size. The advantages of using reinforced fire brick in construction is that it uses less cement and is stronger than concrete. Bricks are also weather resistant and are considered to be ideal in tropical countries like t he Philippines because it slowly absorbs heat to keep the inside of the house cooler. Bricks do not need cement plastering and the walls do not need to be painted. The disadvantage of using this material is the high cost. Even if it requires less cement and no paint the cost of the material is still higher compared to common construction materials used. Concrete Hollow Blocks (CHBs) CHB as a backyard industry In the Philippines, CHB remains as a backyard industry because it is easy to produce, especially the non-load bearing CHB. The CHB can be produced manually by using an improvised mold. In producing a non-load bearing CHB, a mixture of sand, gravel, cement, and water can be manually compressed using the improvised mold. Reasons why CHB is still being used in construction There are three reasons why CHB is still being used in construction, namely: (1) cost; (2) availability; and (3) ease of installation and handling. CHB still remains as the a cheaper choice in construction of a concrete house. As a backyard industry, CHB is available nationwide with similar product specifications. Lastly, CHB is a traditional product. With this, majority of the laborers or construction workers are familiar with CHB in construction. The familiarity of the laborers with a product is the main reason why CHB is still being used. Innovations from CHB The demand for quality, economy, and completion time are the major considerations for all construction projects that usually dictate the choice of technology  [20]  . The traditional construction material currently being used for construction projects is the CHB. Based on the interview with key players in the real estate industry, another alternative is the pre-fabricated walls. For fabricated walls, the entire wall is built off- site or on-site before installation as compared to CHB that are stacked one on top of another. In the Philippines, only 5% are using prefabricated building material in housing construction  [21]  . Over the years, different types of construction materials have been offered containing recycled plastic, such as PVC pipes. Recycling is especially important for thermoset polymers since this form of plastic cannot be reheated and melted back to liquid form. In the Philippines and in other countries, shredded plastic has been used as aggregates for bricks and construction blocks. Most of these, however, are not widely offered commercially and are not load bearing. Porters Five Forces and Key Success Factor Figure 4. Porters Five Forces for the Construction Materials Industry Industry Rivalry Among Existing Players- Medium The demand for this product is readily accessible in most areas and the market is sensitive only to the price relative to the quality of the product they receive. At present the 4-6inchconcrete hollow blocks prices are standard for all and vary only between the volume suppliers and the backyard suppliers because of their respective approach to the business. The buyers of the product favor the suppliers who are nearer to them (because of transportation costs) and if satisfied with the quality they retain their suppliers. However there are instances where the buyer changes suppliers in lieu of quality issues for this reason, industry rivalry will be considered medium. Threat of New Entrants Medium The technical skill and labor required isnt advanced nor does it require highly specialized machines to deliver the product, the only obstacle is the cash required to: 1) purchase the hollow block maker and; 2) to secure working capital requirements. The cost of a concrete block mixer is between Php30,000-P40,000, and a mold container would be approximately Php5,000 per piece. Normally a block maker can start a small-time business with 6 molds which is equivalent to Php30,000 therefore a backyard business can start at a Php60,000 investment excluding working capital. The disadvantage of this practice is it sacrifices the quality/durability of the blocks due to the lack of compression of the block being formed thereby resulting in a lower PSI rating. The difficulty in securing funding for this particular business is high because the business is not unique while the returns in this type of business do not instantly translate to high growth profits. The local venture capitalists who provide seed capital to startups look to sunrise industries such as the BPO sector and IT services delivery, or the next big website investment. The prospects of a potential participant to capture market share will primarily be on their ability to reduce the cost of their concrete hollow block while maintaining a reasonable quality and service. In order to achieve this, the potential participant must have a large base of clients in order to achieve economies of scale in their production of quality products and a person who will provide assistance to the client to ensure proper delivery and satisfaction, a backyard hollow block maker will not be able to be competitive and for this reason the threat of new entrants is rated as medium taking into consideration these factors. Bargaining Power of Buyers Medium Some projects outsource their hollow block while others make it onsite. While it is preferred to buy the product in order to avoid the cost of investment and taking into consideration that there is abundant supply for this product (but at varying prices depending on which type of supplier: backyard supplier, volume supplier or a wholesaler, and depending on the volume purchase of the buyer the bargaining power of buyer is medium given the availability of a quality product in the market. Bargaining Power of Suppliers Low / Medium The demand for reasonably priced hollow blocks are assumed to be growing at 10.5% and construction materials 5.4% which supports the argument that demand is good. Another consideration is that the real-estate residential development is in the form of condominiums and they make use other products such as pre-fabricated walls instead of hollow blocks. The construction boom doesnt directly translate to increased hollow block use and the prices of hollow block are generally stable therefore for these reasons the suppliers bargaining power is low. The bargaining power of cement and sand suppliers remain low since there are abundant sources for these suppliers. The PET flakes suppliers have a medium bargaining power since they are less abundant than the cement and sand suppliers. Moreover, the local PET suppliers have different methods in shredding and cutting the plastic such that those suppliers that have the ability to shred PET flakes at a certain size have a stronger bargaining power than others. Threat of Substitute Products Low For the low cost housing sector and other housing projects hollow blocks are still preferred. The emerging sector of high-rise residential projects make use of pre-fabricated products and gypsum boards however the market share of these products is only 5% for construction materials, therefore the threat of substitutes are rated medium. Key Success Factors (Industry) The success in this industry will be in the costing of the product and the quality. In order to reduce the overall cost of the product there is a need to meet operation efficiency and effective marketing in order to achieve economies of scale that will bring down overall costs for our firm while producing a good quality product. Opportunities and Threats Opportunities Emphasis on PPP programs for government infrastructure projects Good forecast for the tourism, BPO, and mining industry Movement towards sustainable community development The use of plastic as an aggregate is not yet widely introduced in the Philippines The high amount of investment on PPP programs is seen as a good opportunity for the construction materials industry. For year 2012, several PPP projects are in the pipeline, namely: (1)14 projects on transportation; (2) 2 projects on utilities-water (3) 2 projects on power; 1 project on health; and (4) 2 projects on agriculture that amounted to USD 5.49B will increase the demand for construction materials. These PPP programs will also serve as an opportunity for private companies to increase their annual construction projects. The growth of three industries, namely: (1) tourism industry; (2) BPO; and (3) mining industry will also contribute to the growth of the construction materials industry. The increasing annual foreign tourist arrivals and domestic travelers opted for the increased in resorts, hotels, and condominiums. The increase in number of accommodation facilities was accompanied by the Republic Act of 9593 or Tourism Act of 2009 wherein the roads that are not initially classified as national but lead to tourism sites, airports, and seaports will be improved which will be included in the DPWH budget for 2012.  [22]  For the BPO, construction of commercial buildings is also expected to increase to meet the demand of the industry. The investment of the Mines and Geosciences Bureau (MGB) would show that the mining still remains as a promising industry (Table 1). Investment on mining would result to more office sites and barracks for mining companies. The movement towards building more sustainable developments is seen as an improvement for the construction industry. New technologies for products and processes will help improve the viability of construction projects in the Philippines. By focusing on the impact of construction of the environment, the need for environment-friendly products may increase as the industry try to include the societys welfare in planning construction projects. The use of plastic as an aggregate is currently being used in Germany. However, this new aggregate is not yet widely introduced in the Philippines. This is seen as an opportunity for the company to introduce a product with more benefits than the existing products in the market. Threats Competition (large companies) Emergence of new products Competition especially against large competitors is seen as a major threat because these companies are already established in the industry. New companies that may introduce new products in the market may face difficulties especially if these products are not patented. Large companies can simply launch the same product at a larger scale. The availability of funding for these large companies will give them an advantage to produce more products. The more products a company manufactures, the opportunity to capture a larger market is bigger. Also, large companies can be seen as good suppliers for developers and contractors who want a steady supply of materials. Even if CHB currently remains as the primary choice for wall construction, emergence of new products as a substitute may pose as a threat for the CHB market. Even if only 5% in Philippines uses prefabricated bu

Consumer Behavior Impacts

Consumer Behavior Impacts Donna Thompson Kaplan University October 3, 2012 Consumer Behavior Impacts Within the context of the consumer socialization of children, adult consumer, and intergenerational socialization reflects home theaters. To measure the cultural impact on consumer behavior towards home entertainment versus theatre has two approaches etic and emic. Etic approaches on cross cultural end user research. While emic focuses upon indulgent issues from the viewpoint of the subjects being studied.All culture influences are not stagnant and do change over time from adults to children behaviors. Within the context of the consumer socialization of children, adult consumer, and intergenerational socialization reflects home theaters that allow for families to enjoy at home in privet, without interruptions entertainment. Also with the economy it saves money, families are going towards more to Netflix than cable they can get movies by mail and watch them at home.Due to these type of services people can comfortably watch movies at home without buying DVD’s, or go to movie theaters. Furthermore â€Å"The term family is a basic concept, it is not easy to define because family composition and structure, as well as the roles played by the family members, are almost always in transition† (Schiffman , L. G. , & Kanuk, L. L. 2007), which leads to cultural methods of measuring, impact and religion. To measure cultural impact on consumer behavior towards home entertainment versus theatre has two approaches etic and emic. Etic units and classifications are available in advance, rather than determined during the analysis. These advanced etic units can be based on prior broad sampling or surveys; emic units must be discovered† (Berry, J. W. 1989). Furthermore, etic approach in cross cultural end user research generally looks at comprehensive or culture free theories and conceptions. To search different socializations variables and constructs that are co nventional to all ultures and can be straightforwardly rivaled in order to discover how the way of life are different or similar to each other as families partake in home theater. Emic focuses upon indulgent issues from the viewpoint of the subjects being studied. Furthermore culture can be defined emic-ally as the lenses during the course of which all occurrences are seen. It determines how these occurrences are apprehended and assimilated. This relates to children looking up to their parents and friends to acquire skills and knowledge to function as consumers or even to build brand loyalty. Understanding the customers' needs and wants induces companies to realize that no two buyers are ever exactly the same, this heterogeneity in needs and wants drive companies to look for distinctive groups of customers† (Shahhosseini A, Ardahaey). Culture influences are not stagnant and do change over time, and at times â€Å"It has been argued that religion is highly personal in nature a nd therefore its effects on consumer behavior depend on individuals’ level of religious commitment or the importance placed on religion in their life† (Mokhlis, S. 009). Thus it is the responsibility of marketing managers to check for any changes and adapt their marketing policies, in view of culture to a great extent establishes how, why, when and for whom merchandises and services are procured. Whether working directly through prohibitions and obligation or through influences on the culture and society, religious values and beliefs are known to affect prescriptively and emblematically human behavior. All culture influences are not stagnant and do change over time from adults to children behaviors.To search different socializations variables and constructs that are conventional to all cultures and can be straightforwardly rivaled in order to discover how the way of life are different or similar to each other as families partake in home theater. It is the responsibility of marketing managers to check for any changes and adapt their marketing policies, in view of culture to a great extent establishes how, why, when and for whom merchandises and services are procured. Reference Berry, J. W. (1989). IMPOSED ETICS-EMICS-DERIVED ETICS: THE OPERATIONALIZATION OF A COMPELLING IDEA.International Journal Of Psychology, 24(6), 721. Mokhlis, S. (2009). Relevancy and Measurement of Religiosity. International Business Research, 2(3), 10. Retrieved from www. ccsenet. org/journal. html Schiffman , L. G. , ; Kanuk, L. L. (2007). Consumer Behavior (9th ed. ). Upper Saddle River, New Jersy: Pearson Education, inc. Shahhosseini A, Ardahaey F. Marketing Mix Practices in the Cultural Industry. International Journal Of Business ; Management. August 2011;6(8):230-234. Available from: Business Source Complete, Ipswich, MA. Accessed October 3, 2012.

The Social Theory of Du Bois

Karl Marx, Max Weber, and Emile Durkheim are widely recognized as the trinity of sociological theory. While these three sociologists were trailblazing social theorists who enhanced the study of human behavior and its relationship to social institutions, other, more contemporary scholars were just as innovative – one of those scholars being W. E. B. Du Bois. W. E. B. Du Bois was a political and literary giant of the 20th century, publishing over twenty books and thousand of essays and articles throughout his life. W. E. B Du Bois is arguably one of the most imaginative, perceptive, and prolific founders of the sociological discipline. In addition to leading the Pan-African movement and being an activist for civil rights for African Americans, Du Bois was a pioneer of urban sociology, an innovator of rural sociology, a leader in criminology, the first American sociologist of religion, and most notably the first great social theorist of race. The work of W. E. B. Du Bois (1868-19 63) has recently become recognized for its significant contributions to sociological theory. Although Du Bois himself was overwhelmingly concerned with the scientific perspective of â€Å"value free† sociological research, later social theorists have found his thoughts on race to offer one of the first instances of the articulation of standpoint theory. This theoretical perspective is anything but value free, because of the self-conscious efforts of the researcher to look at the social world from the vantage point of minority groups. Feminists, multiculturalists, and even postmodernists have come to recognize the importance of the black point of view found in Du Bois's work. They have also come to appreciate Du Bois for his focus on local knowledge and practices. W. E. B. Du Bois was an important American thinker. Poet, philosopher, economic historian, sociologist, and social critic, Du Bois’ work resists easy classification. Du Bois is more than a philosopher; he is, for many, a great social leader. His extensive efforts all bend toward a common goal, the equality of colored people. His philosophy is significant today because it addresses what many would argue is the real world problem of white domination. So long as racist white privilege exists, and suppresses the dreams and the freedoms of human beings, so long will Du Bois be relevant as a thinker, for he, more than almost any other, employed thought in the service of exposing this privilege, and worked to eliminate it in the service of a greater humanity. Du Bois was a prolific author. His collection of essays, The Souls of Black Folk, was a seminal work in African-American literature; and his 1935 magnum opus Black Reconstruction in America challenged the prevailing orthodoxy that blacks were responsible for the failures of the Reconstruction era. He wrote the first scientific treatise in the field of sociology; and he published three autobiographies, each of which contains insightful essays on sociology, politics and history. In his role as editor of the NAACP's journal The Crisis, he published many influential pieces. Du Bois believed that capitalism was a primary cause of racism, and he was generally sympathetic to socialist causes throughout his life. He was an ardent peace activist and advocated nuclear disarmament. The United States' Civil Rights Act, embodying many of the reforms for which Du Bois had campaigned his entire life, was enacted a year after his death. Early in his career Du Bois claimed that the â€Å"race idea† was the central thought of all history and that the primary â€Å"problem of the twentieth century was the problem of the colour line. † Du Bois viewed the goal of African Americans not as one of integration or absorption into white America, but one of advancing â€Å"Pan-Negroism. † Critical of the excessive materialism of white America, Du Bois believed that black culture could temper the self-interested pursuit of profit. Du Bois called on blacks to organize and unite around their race, and although he was not opposed to segregation per se, he did come to realize that discrimination stifled the development of â€Å"separate but equal† facilities and institutions. The concepts of the Veil and double consciousness occupy an important place in Du Bois's theory on race. Du Bois discusses both in his work The Souls of Black Folk. The Veil is an imaginary barrier that separates whites and blacks. Du Bois hoped his work would allow whites to glimpse behind the Veil, so they could begin to understand the black experience in America. Perhaps the most fundamental component of the black experience in America was living with what Du Bois called double consciousness. Blacks are simultaneously both inside and outside of the dominant white society and live with a feeling of â€Å"twoness. † By trying to cultivate and preserve a racial identity, blacks come into conflict with trying to fit into white society. According to Du Bois, the tension of being both black and American can manifest itself in pathologies within the black community and discrimination in white America. Whatever turns out to be the best general account of Du Bois’ philosophy, it seems the significance of his thought only really shows up in the specific details of his works themselves, especially in The Souls of Black Folk. It is here that he first develops his central philosophical concept, the concept of double consciousness, and spells out its full implications. The aim of Souls of Black Folk is to show the spirit of black people in the United States: to show their humanity and the predicament that has confronted their humanity. Du Bois asserts that â€Å"the color line† divides people in the States, causes massive harm to its inhabitants, and ruins its own pretensions to democracy. He shows, in particular, how a veil has come to be put over African-Americans, so that others do not see them as they are; African-Americans are obscured in America; they cannot be seen clearly, but only through the lens of race prejudice. African-Americans feel this alien perception upon them but at the same time feel themselves as themselves, as their own with their own legitimate feelings and traditions. This dual self-perception is known as â€Å"double consciousness. Du Bois’ aim in Souls is to explain this concept in more specific detail and to show how it adversely affects African-Americans. In the background of Souls is always also the moral import of its message, to the effect that the insertion of a veil on human beings is wrong and must be condemned on the grounds that it divides what otherwise would be a unique and coherent identity. Souls thus aims to make the reader understand, in effect, that African-Americans have a distinct cultural identity, one that must be acknowledged, respected, and enabled to flourish. Du Bois’ other major philosophical concept is that of â€Å"second sight. † This is a concept he develops most precisely in Darkwater, a work, as we have seen, in which Du Bois changes his approach and takes up a stauncher stance against white culture. Du Bois holds that due to their double consciousness, African-Americans possess a privileged epistemological perspective. Both inside the white world and outside of it, African-Americans are able to understand the white world, while yet perceiving it from a different perspective, namely that of an outsider as well. The white person in America, by contrast, contains but a single consciousness and perspective, for he or she is a member of a dominant culture, with its own racial and cultural norms asserted as absolute. The white person looks out from themselves and sees only their own world reflected back upon them—a kind of blindness or singular sight possesses them. Luckily, as Du Bois makes clear, the dual perspective of African-Americans can be used to grasp the essence of whiteness and to expose it, in the multiple senses of the word â€Å"expose. That is to say, second sight allows an African-American to bring the white view out into the open, to lay it bare, and to let it wither for the problematic and wrong-headed concept that it is. The destruction of â€Å"whiteness† in this way leaves whites open to the experience of African-Americans, as a privileged perspective, and hence it also leaves African-Americans with a breach in the culture through which they could enter with t heir legitimate, and legitimating, perspectives. Later in life, Du Bois turned to communism as the means to achieve equality. Du Bois came to believe that the economic condition of Africans and African-Americans was one of the primary modes of their oppression, and that a more equitable distribution of wealth, as advanced by Marx, was the remedy to the situation. ( John J. Macionis: Sociology 14th edition) Du Bois was not simply a follower of Marx, however. He also added keen insights to the communist tradition himself. One of his contributions is his insistence that communism contains no explicit means of liberating Africans and African-Americans, but that it ought to focus its attentions here and work toward this end. â€Å"The darker races,† to use Du Bois’ language, amount to the majority of the world’s proletariat. In Black Folk, Then and Now, Du Bois writes: â€Å"the dark workers of Asia, Africa, the islands of the sea, and South and Central America†¦these are the one who are supporting a superstructure of wealth, luxury, and extravagance. It is the rise of these people that is the rise of the world† (Black Folk,). A further contribution Du Bois makes is to show how Utopian politics such as communism is possible in the first place. Building on Engle’s claim that freedom lies in the acknowledgment of necessity, as Maynard Solomon argues (Solomon, â€Å"Introduction† 258), (because in grasping necessity we accurately perceive what areas of life are open to free action), Du Bois insists on the power of dreams. Admitting our bound nature (bound to our bellies, bound to material conditions), even stressing it, he nonetheless emphasizes our range of powers within these constraints. Although difficult to characterize in general terms, Du Bois’ philosophy amounts to a programmatic shift away from abstraction and toward engaged, social criticism. In affecting this change in philosophy, especially on behalf of African-Americans and pertaining to the issue of race, Du Bois adds concrete significance and urgent application to American Pragmatism, as Cornel West maintains, a philosophy that is about social criticism, not about grasping absolute timeless truth. Above all, however, Du Bois’ philosophy is significant today because it addresses what many would argue is the real world problem of white domination. So long as racist white privilege exists, and suppresses the dreams and the freedoms of human beings, so long will Du Bois be relevant as a thinker, for he, more than almost any other, employed thought in the service of exposing this privilege, and worked to eliminate it in the service of a greater humanity. References: Du Bois, W. E. B. Black Folk, Then and Now (Millwood, N.Y.: Kraus-Thomson Organization Limited, 1975). Du Bois, W. E. B. Darkwater: Voices From Within the Veil (Mineola, N. Y. Dover Publications, 1999). http://en.wikipedia.org/wiki/W._E._B._Du_Bois http://highered.mcgraw-hill.com/sites/0072824301/student_view0/chapter10/chapter_summary.html Sociology: 14th edition (John J Macionis; Prentice Hall, 2011)

The Day Of The Atomic Bomb - 1798 Words

I can remember it like it was yesterday. Four days after my sixth birthday, and a brisk Tuesday morning. I do not have many vivid memories from my sixth year, however, with little understanding of the situation, I knew something horrible had happened. A small town in southern Indiana went from calm and quiet to panicked and absolutely silent. As a kindergartener student I could not begin to fathom the heinous act that had taken place. I cried because the world around me cried. I watched it appear on every television screen. I waited for answers that never came. There are days the world will never forget: the day the atomic bomb hit Hiroshima, the day Kennedy was assassinated, the list continues. This was one of those days. It was a brisk Tuesday morning in September. In the blink of an eye, everything stopped. Shock crossed the nation. Nobody moved. Everyone stared at their televisions in disbelief. 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