Capitalism (Essay Sample)

Capitalism
Name
Institution
Abstract
In a society or region, economic activities play a central role in the survival of humankind. The mutual interactions between people living in the society and their economic activities are important. In a corporation, the success of one individual is measured by the effectiveness and aliveness of the person in the in the financial world. Among other activities, capitalism is one of the major economic systems that influence the society. Depending on how capitalism is practiced, it can either be beneficial or detrimental to the society. The motive behind any business is success and accumulation of money, but how to acquire the success and money is a significant factor. This research paper focuses on capitalism as an economic system and its effects. The types of capitalism and their advantages are also tackled in this document. As a business owner in the beer production industry, critical analysis of how business owners can use their privately owned businesses, and enjoy capitalism to make the world a better place is discussed in details. Also, contained in this paper are the possible disadvantages of capitalists in case it is inappropriately practiced.
Keywords: capitalism, business, production, and distribution, society, social-economic system
Capitalism is an industrial term used to describe an economic system in which the centers of production, trade and industry are owned and operated by private individuals and not the state. All business operations regarding production, distribution and management are entirely carried out by individuals and private sectors. In capitalism systems, the government’s role is the provision of security, both internally and externally and solving disputes through a court of justice in the case of any disagreements in business terms. Other business activities including price determination of goods and services are typically determined by parties involved in the transactions. The degree of capitalism varies from state to state depending on the laws and regulations of the country.
There are different types of capitalism. The existence of capitalism varies according to the region or country’s economic policies. Types of capitalism include mercantilism, free-market economy, social-market economy, state capitalism where the state is in power of production and distribution of goods and services for profit-making purposes, corporate capitalism and mixed economy. There are other minor variants of capitalism including crony capitalism. Crony capitalism describes a type of economy in which the success of a business lies in the relationship between business owners and governmental officials. Crony capitalism results from favoritism in the distribution of governmental services such as legal permits and other forms of state interventionism. Crony capitalism typically benefits individuals other than the entire business industry.
Capitalism is paramount and influential in the economic systems. It is usually characterized by an accumulation of capital, competitive markets and an increase in wage labor. Other benefits of capitalism include efficient control of the production process, increased variety availability due to non-governmental regulations and an improved quality of goods and services. Due to capitalism, there is a possibility that consumer’s choice is emphasized as production and distribution sectors experience a reduction in production cost as a result of efficient control (Pettinger, 2012). These factors can positively influence the economic state of the country.
As a business owner, utilizing capitalism to make the earth a better place for other people is significant. The correct business plans and operations can benefit many people. The business that I am associated with is purposely meant for the production and distribution of distilled wines and spirits. Located in Bismarck capital of North Dakota, the company is intended to change the lives of many citizens within and without the state. The company is composed of specialized professionals and simple manual workers who work in conjunction with other private parties to make a business success. As a corporation owner, the workforce comprises employees in charge of different departments such as financial managers, production department managers, auditing specialists and distribution professionals. My sales team operates in cooperation with other private parties in identifying potential markets and set desirable prices for the commodities.
The company enjoys the freedom of managing production and distribution process. The technical team sets strategic costs of production, design appropriate, cost-effective systems for packaging and distribution process, and control quantity of products produced annually. This has been effective in meeting customer demands since statistically the consumption of alcohol among adults living in North Dakota has doubled since 2005. The sales team determines and controls the cost of the products. Since the costs of production are reduced, our goods and services are cheap and readily affordable to the customers. Affordability of the products to customers has reduced crime rates among the poor people who strive to afford the expensive liquor.
The quality of the products is managed by the Quality and Assurance team. Quality is the primary goal for the production and distribution company. Since the state practices the capitalist system, and due to the high demand of the liquor in North Dakota, the possibility of counterfeit companies taking the advantage of the situation is very high. The lives of the citizens will be in danger. That is the reason the company is dedicated to producing quality wines and spirits with the correct alcohol concentrations labeled. The production process is environmental friendly and meets international standards, and the waste products disposed appropriately. These measures are made to safeguard the security of the customers.
With the current growing trends in operations and marketing there is a likelihood of expansion of the business. Due to non-regulation from the state, more distribution centers will be established in the surrounding states creating more jobs for the unemployed. Increased ethical capitalism ensures effective labor supply. Workers receive paybacks in the form of wages or salary while the business owners enjoy profits realized from the enterprise operations. Workers in a production and distribution industry involve those who use both manual and mental labor in the process of production. The end products of the cycle can either be tangible or intangible in form of services. Labor also comprises physical and mental input of human resources including s...