Caterpillar Company Analysis Using Porters 5 Forces Model

Introduction Porter’s five forces analysis is necessary for Caterpillar Company as it assists in comprehension of the market strengths and weaknesses.Advertising We will write a custom report sample on Caterpillar Company Analysis Using Porter’s 5 Forces Model specifically for you for only $16.05 $11/page Learn More Although the Caterpillar Company has been a household name in the global heavy machinery manufacturing industry, there are several players that have limited its competitive advantage in the industry. The five forces determining the competitive advantage of companies operating within the heavy machinery manufacturing industry in the US are discussed below. Potential entrants Economies of scale The current players in the heavy machinery manufacturing industry have been in existence for long and have very large production capacities. For instance, Caterpillar, Deere, Kubota Corporation, Komatsu Limited, and AGCO Corporation have di verse and very big manufacturing plants spread across the US. Therefore, it is easy for these players to lower their prices as a competitive strategy since they directly benefit from economies of scale. Thus, a new entrant is disadvantaged in terms of pricing of its machineries since it will not benefit from economies of scale in the same magnitude as the current industry players (Wright, 2007). Cost disadvantages from other than scale The cost of putting up a single production unit is very expensive for a new entrant since the current players such as Caterpillar, Deere, Kubota Corporation, Komatsu Limited, and AGCO Corporation have breakeven and can easily manage the cost of production with clear market projections. A new entrant will find itself in the mucky waters of trying to manage the cost of producing a single unit of machinery to compete the average industry cost, which may not be practical for a small player (Wright, 2007).Advertising Looking for report on business ec onomics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Product differentiation Players in the industry such as Caterpillar, Deere, Kubota Corporation, Komatsu Limited, and AGCO Corporation have diversified their product as part of portfolio balance strategy. For instance, each of the above players have diversified heavy machinery to serve construction, agriculture, and manufacturing sectors to boost the total revenues each year. A new entrant may not be able to compete with these players since their diverse products and strong brand presence is almost impossible to challenge, especially when the new entrant plans to start small (Johnson, Whittington, Scholes, 2011). Capital requirements The heavy machinery manufacturing industry is characterized by capital intensive ventures since most of the machines are very expensive to product, maintain, and replace. For instance, Caterpillar has a capital worth of 28 billion dollars. It is very difficult f or a new entrant to easily enter this market and breakeven within two to three years since such ventures require a lot of capital in putting up factories, hiring skilled workers, and producing affordable and quality machineries (Johnson, Whittington, Scholes, 2011). Switching cost The cost of switching to different machinery at the production stage is very high since it requires complete overhaul of the previous plant. This is not sustainable in the short run for new player with relatively limited capital (Johnson, Whittington, Scholes, 2011). Within this aspect, switching cost for a new entrant may translate into closing down such a company.Advertising We will write a custom report sample on Caterpillar Company Analysis Using Porter’s 5 Forces Model specifically for you for only $16.05 $11/page Learn More Access to distribution channels The players in the heavy machinery manufacturing industry have spread across the nation, opening numerous br anches in all major cities and centers. It would require massive capital for an aspiring investor to outperform their business prowess, in terms of established distribution channels (Wright, 2007). A new entrant will be in a disadvantaged position when attempting to penetrate this industry. Government policy There are stringent rules by the federal government that must be followed by any player in this industry. As a legal requirement, each company in the industry is expected by the regulatory authorities to be tax compliant and meet the minimal threshold in terms of safety, environmental friendliness, labor laws, and other business requirements (Wright, 2007). The approval process is very long and expensive for a new entrant with limited capital. From this analysis, it is apparent that the threat of a new entrant is very low since the switching cost and capital requirement are very high for a new player. Besides, the current players have high competitive advantage as a result of be nefits from brand differentiation and economies of scale. Threat of substitutes Deere, Kubota Corporation, and AGCO pose the greatest threat to existence and business performance of Caterpillar and any other player in this industry. These companies have been in the industry for long period and are well established. The Deere, Kubota Corporation, and AGCO have the same machineries and sometimes offer big discounts to customers. In the US heavy machinery manufacturing industry, loyalty to a brand plays an important role in customer behavior.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, Deere, Kubota Corporation, and AGCO have the ability to offer an alternative perfect substitute to customers who may be unsatisfied with machineries offered by Caterpillar and other players (Witcher Chau, 2010). Unsatisfied customers have other alternatives from where they can get heavy machinery. However, the threat of substitutes is moderate since changing a brand is very expensive for customers in terms of initial purchasing cost, maintenance, and further training of users. Power of suppliers Suppliers in the heavy machinery manufacturing industry have power owing to the existence of many players and high demand for different raw materials used in the heavy manufacturing plants. As a matter of fact, suppliers may instigate market demand and supply variances since most of the raw materials used in this industry in the US are imported. All the players depend on the suppliers such as the steel companies and engine manufacturers directly for the delivery affordable machin ery parts for assembly. This leaves the suppliers with the power to dictate on proceedings in the industry such as the cost of these parts and their availability (Nexis, 2015). However, through series of partnership agreements with independent manufacturers and vendors, the players in this industry have managed to curtail the power of the suppliers to moderate since there are series of jointly negotiated deals on the cost of these raw materials. Power of buyers Reflectively, the amount of output in terms of turn over sales depends on the buyers’ purchasing power. The higher the purchasing power, the better the turnover in total sales realized over a definite period of time. The performances of Caterpillar, Deere, Kubota Corporation, and AGCO in the US heavy manufacturing industry depend highly on the power of the heavy machinery users. On the other hand, unreliable and weak purchasing power translates into losses and underperformance (Wright, 2007). The players must therefore do everything within their means to ensure that service delivery and quality meets the expectations of customers since the power of the buyers is very high in this industry. Rivalry There are several players such as Caterpillar, Deere, Kubota Corporation, and AGCO operating in the same industry with virtually all of them dealing in a variety of machineries, which can perform similar functions. With many customers looking for good value for their money, durability and affordability of the machineries have remained the main basis upon which customers make their final decision to purchase products in the volatile industry. All the players in the industry are putting measures in place to ensure they attract more customers and therefore expand their market share (Johnson, Whittington, Scholes, 2011). In line with this, the Caterpillar factories are the biggest and busiest in the US. The influence of rivalry is very high due to existence of very many players with the same product brands . Appendix 1: Porter’s five forces analysis Competition Rivalry Determinants of buyer power Threat of Substitution Determinants of supplier power Threat of new entries The Caterpillar Company faces rivalry from both the local companies and international companies. The influence of rivalry is very high in the industry. Customer power is very high in the industry in which the Caterpillar and other heavy machinery companies operate in. The consumers may decide to shift if they feel unsatisfied with the cost, ease of usability, and perceived durability of the heavy machinery brands. The threat of substitute products is moderate in the heavy machinery industry as the cost of switching products for the consumers is quite high since these machines are very expensive and requires specialized servicing teams from the manufacturer. The supplier power in the industry is moderate. The players in the industry have negotiated standard prices of most of the imported materials used in t he industry. The threat of new entrants into the heavy machinery industry is very low. This industry is capital intensive and has very stringent government regulation policies that a small player may not survive in. References Johnson, G., Whittington, R., Scholes, K. (2011). Exploring strategy (9th ed.). Alabama, Al: Prentice Hall. Nexis, L. (2015). Business and management strategy. Chicago, Ch: Glo-Bus Spring. Witcher, B., Chau, V. (2010). Strategic Management: Principles and Practice, Alabama, Al: Cengage Learning. Wright, P. (2007). A refinement of Porter’s strategies. Strategic Management Journal, 8(1), 93- 101. This report on Caterpillar Company Analysis Using Porter’s 5 Forces Model was written and submitted by user Ishaan T. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

An Essay Analysis Of Learning To Read Essays - Education

An Essay Analysis Of Learning To Read Essays - Education An Essay Analysis Of Learning To Read Summary and Purpose Learning to Read depicts how Malcolm X teaches himself to become more than a street hustler. His mere dislike of his lack of writing ability, and his envy of a fellow inmates(Bimbi) book collection motivates him to become a better writer. Bimbi was his initial motivation. As time passes his love for putting his thoughts and newly found words makes him a powerful talker. Authors Style and Techniques The Authors style and technique ranges from his use of flashbacks when Malcolm talks of the past when he could talk and people listened. He contrasted this to his to his lack of reading ability. Malcolms tone his pretty clear and straight to the point. By showing his dislikes without animosity he displays signs of a truly educated person. Readers Response I believe that Learning to Read is a metaphor for life. It tells how anyone can be at the bottom of anything, but you can get to rise with a little work and dedication. Especially when you come from jail to become as great as Malcolm X, you must be a learned person to get up and make something out of yourself.

Final Exam Assignment Example | Topics and Well Written Essays - 1000 words

Final Exam - Assignment Example In this regards, one is assured of job security because of knowing another language. Knowledge of another language can be important can be advantageous when one wants to learn and understand cultures of other people. It is utterly impossible to comprehend other cultures if in the first place you do not know the language of those cultures. Lack of knowledge of other peoples’ culture may lead to intolerance and conflicts because behaviors in one culture are expressed differently through language in other cultures. 2. An English language learner (ELL) can be confused for a child with learning disability because both of these scenarios exhibit similar characteristics and behaviors. These two groups of individuals usually share a number of traits and sometimes the line separating them becomes blurred leading to mistaken identities. ELL students may speak infrequently in class and most of the times they make keep to themselves. In other times they may engage excessively in conversat ions using either their first language or English. Others may have poor memory, pronunciation, grammar and syntax, refusal to respond to questions besides refusing to volunteer information. This sort of confusion can be sorted out by the teachers of the students teaming up with other professionals in order to differentiate the problems arising due to learning disabilities and those due to second language acquisition. 3. One of the important strategies of promoting language in English learners is by using questions. Many teachers ask their students questions which to an ordinary student may appear to be redundant and obvious. When questions are asked about the community and other happenings outside the class, students tend to be more assertive and active in class which promotes second language acquisition. Another strategy is use of teaching practices that are culturally responsive in order to create a positive and interactive learning environment. Incorporation of cultural and lingu istic resources in the class occurs through such practices like storytelling and vivid description of past events by the students. Besides these two, a teacher can also use successful practices that ensure that there is promotion of language as a means of sharing experiences, ideas and interests in class. This simply means developing social groups within a class whereby students learn through shared experiences by socialization with peers. 4. Receptive as well as expressive language skills are very important and pertinent to the writing and reading processes. As such, they form a central part of emergent literacy in children since they form important ways in which children perceive and understand their world. Young children like adults usually learn through writing and reading but not in the way adults do because they are still learning their expressive and receptive skills. On the one hand, expressive skills are developed through reading whereas receptive skills come from reading. The combination of these two skills is very important in influencing how emergent literacy on a child will be. Children that have poor receptive and expressive learning usually tend to be poor in emergent literacy which affects their participation in class and their performance. 5. Emergent literacy develops over a long period in students which is depended on the ability of the students to move through different

Controversy of Real Name Policy on Facebook Research Paper

Controversy of Real Name Policy on Facebook - Research Paper Example More so, the Real-Name Policy on Facebook is a measure that has been endeavored to ensure that people know for sure whoever it is that they are connecting with, and in so doing, the whole Facebook community then remains safe, through effectively curtailing cyber-bullying (Meganmeierfoundation.org., 2014). In this respect, Real-Name Policy on Facebook requires that several identity measures should be observed. First, individuals should use the real name that they use in real life, when establishing a Facebook account, without adding numbers, unusual capitalization, symbols, punctuations or repeated characters (Facebook.com., 2014). Secondly, individuals establishing a Facebook account should refrain from adding characters from multiple languages, while at the same time refraining from adding any titles such as their profession or religion (Facebook.com., 2014). Finally, the individuals interested in joining Facebook should also ensure to avoid the usage of words, phrases or nicknames that are not part of their real names, while at the same time refraining from using any offensive or suggestive words, titles or phrases as part of their identity on the networking site (Facebook.com., 2014). This way, it will be possible for the Facebook community to remain safe, owing to the fact that p eople will only interact on the basis of knowing each other authentically, thus avoid the incidences of cyber-bullying that has been a characteristic of the social networking (Gà ¶rzig & Frumkin, 2013). Cyber-bullying has been defined as the application of the information technology tools in order to harass or harm others deliberately (Gà ¶rzig & Frumkin, 2013).  

Should People Be Able To Vote Online Essay Example | Topics and Well Written Essays - 500 words

Should People Be Able To Vote Online - Essay Example the main reason due to which promoters of online voting are favoring the system is that they believe that such a voting system will increase the participation of the youth which forms the majority of the population throughout the world and are even the majority in the case of internet users. Online voting may increase the participation of the youth but may result in a digital divide. This means that only those individuals will be able to case votes online that have access to internet while those who do not have access to this resource will be left behind. Due to this the outcome of the elections will be favoring a few and will become a disadvantage for others. According to Cavanagh, during the period of 2003 a total of only 30% of those individuals who belonged to families earning less than $25k per year had internet access, while more than 90% of those who belonged to families that earned more than $100k had internet access (Cavanagh, 2007, p.65). This means that online voting will benefit only those who belong to higher income earning families. Another reason due to which people are in favor of internet voting is that it is inexpensive as it does not require the government to print ballot papers and hire individuals for the voting process. Government might be able to save money by implementing online voting but at the same time government expenditure will rise as the government will have to spend money on first developing such a system, they will have to spend money on educating people about the system and helping them understand the system. Chapman states that educating the public about the electronic voting system will alone cost  £9million (Chapman, 2011). This is just the cost of educating people, there are various other monetary costs associated with creating and adopting online voting system. The third reason for supporting online voting system is that it will provide accurate results. it can never be appropriate to suggest that online voting system will

Effect of Employee Empowerment on Customer Satisfaction

Effect of Employee Empowerment on Customer Satisfaction Employee empowerment and customer satisfaction is one of those terms that everyone thinks they understand, but few really do. Ask a dozen different people and youll get a dozen different answers to the question, What is employee empowerment? In fact,  research a dozen organizational theorists and youll get as many answers to the same  question. Some writers indicate that empowerment consists of sharing power and  authority. Others say that empowerment occurs when the organizations processes are  set-up to allow for it. If you keep in mind the secondary dictionary definition of to give  faculties or abilities to: enable (Grove, 1971, p.744), with all that this word implies, then  you will be on the right track for the purposes. Employee empowerment is a key feature of the modern management style. Empowered employees are expected to perform more effectively as compared to those working in  traditional or authoritarian organizational cultures. Empowered employees are more  motivated as compared to those who just follow the given lines. Employee  empowerment creates sense of belongingness and ownership towards the parent  organization. Empowered employee feel more confident and try to give their best to  their employers, as a result, service quality improves. Improved product or service  quality generally results into higher level of customer satisfaction. Higher level of  customer satisfaction results into a bigger sales volume resulting into an improved  profitability. Every business aims at earning profits; however profits and customer value  go hand in hand. In order to give maximum value to a customer, the service provider is  required to develop a sound understanding of the customer e xpectations. In the first part of this thesis, the authors will present the background to the problem,  which will then be specified in the second part. Further, the delimitations of this study  will be stated. After reading this first part, the reader will have gained a better  understanding of the research subject which leads to purpose and related research  questions guiding this study. 1.1 BACKGROUND Global markets have built a competitive environment in business. If the organizations  want to remain in the market, they must be inventive in lowering costs and value to  customers. So it is essential for an organization to utilize the full potential of its people. But the employees need power and control to make decisions to fulfill the customers  needs. According to (Cook, 1992) studies shown that people work with full energy when they  feel happy, even they are ready to sacrifice for organizations and give their blood to the  company. But when they feel valued and important. They show their involvement in the  business. (R Maxwell, 2005) Employees in a service organization and particularly, those who have  frequent contacts with the customer usually serve as representatives of both the  Organization and their products or services to the customer at contact point. The quality  of the service and the satisfaction the customer may derive will be an assessment of the  entire service experience. Employees who are empowered in an organization can either  portray a positive or negative picture to the customers. 1.2 PURPOSE STATEMENT The purpose of this survey based quantitative research is to determine and identify the  perception of employees about the employee empowerment in banking sector of  Pakistan. At what extent these organizations are practicing employee empowerment,  and how much this empowerment has impact on service quality and customer  satisfaction. In matters concerning financial commitments, investments and spending customers, not  only need reassurance that their finances are safe, but also that they are valued for  committing their stakes with a particular financial institution. Customers of a bank rely  on the services delivered to them by the bank whether they are saving depositing,  taking loans, cashing cheques or buying funds, they count on the employees  responsible for handling issues relating to them, to deliver high service quality in other  to increase their satisfaction. 1.3 SIGNIFICANCE OF THE STUDY This research will provide a deep view to the implications of employee  empowerment to employees, government, employers, students and the general  public who have an interest in the study. The readers will be able to understand new relations between different variables  and conceptual understanding of these variables. They will read new concepts in  the context of banking sector e.g. organizational image, effectiveness and  efficiency and building trust. This research is targeted at the management of organizations within the banking  industry, and industries producing highly intangible-dominant services, as  suggestion regarding employee empowerment, which when practiced can  enhance customer satisfaction and create a good customer- perceived service  quality. 1.4 OBJECTIVES Main objectives of the study is to determine the impact of employee empowerment on  customer satisfaction in banking sector of Pakistan. General objectives: To determine the impact of employee empowerment on effectiveness and  efficiency. To determine the impact of employee empowerment on service quality. To determine the impact of employee empowerment on organizational image. 1.5 RESEARCH QUESTION What is the impact of employee empowerment on customer satisfaction in banking  sector of Pakistan? CHAPTER TWO LITRATURE REVIEW 2.0 INTRODUCTION Inside of todays unstable public and private sectors, external pressures from political,  environmental, social and technological sources require management to seek out,  evaluate and embrace, new planning, organizational and operating techniques to  remain on track in pursuit of their associations mission and long-term goals. Among  the myriad of proposed theories, models and plans submitted in the past decade to the  managerial community for possible acceptance and implementation is the concept of  employee empowerment. Within the spectrum of discussion on employee  empowerment, rhetoric inevitably mentions the relevant success or failure of  empowerment as a viable tool to upper management. According to (Kirkman, 1989) empowerment of employees is continuously growing  today in Europe. Multinationals have a great concern on empowerment of employees. Empowerment increase employee motivation and positive orientation towards his work  role and finally results in higher productivity.(Watson,2003)over the past few years,  traditional management has gone and new democratic approaches has takes its place. Employee empowerment, which came up in 1990s, is known as one of the new  management concepts. (Hanold, 1997) However, when the relevant literature is  analyzed, this concept is understood to have a longer history than previously thought  with its roots Human Rights Movement of 1950 and 1960s, empowerment has rather  closely related to the various concepts and techniques designed to democratize the  work-place. 2.1 EFFECTIVENESS EFFICIENCY (Conger, Kanangu, 1988) management researchers and practitioners have keen  interest in concept of empowerment and related management practices. This interest is  due to several reasons. First studies on leadership and managerial skills suggest that  the practice of empowering subordinate is a principal component of managerial and  organizational effectiveness. Second analyses of power and control within organization  reveals that the total productive form of organizational power and effectiveness grow  with superior sharing of power and control with subordinates. (Mayers, 1987)  employees are effective performers when they are empowered. Because it is the fact  that the employees who have authority to take decisions perform better. And utilize the  resources of the organization efficiently. 2.2 SERVICE QUALITY In banking organizations, the general offering in a particular industry is averagely  similar, even though they may engage in different approaches to achieving a  differentiation from the others, to be able to gain more market share and customers in  the industry. According to (Gooronos, 2001), that almost any retailing bank can provide  an individual with retailing services, but not every bank manages to treat customers in a  way that they are pleased with. Service providers therefore seek to differentiate themselves from their rivals by offering customers higher quality of services than their  competitors, which makes the basis of their competition to be defined by their services. (K.Sen, 2008)The nature of services as being intangible, heterogeneous, perishable,  produced, and consumed at same time makes it peculiar to deliver, and challenging to  organizations to achieve a differentiation from the others. 2.3 CUSTOMER SATISFACTION (Spetz, Butler; 2008)In the past years the competition in the banking sector is  increasing. There is more choice for the customers and thereby the banks have to work  harder to attract customers. (Peter, Waterman, 1982) focused that good organizations  align their strategies and goals to the requirement s of their customers .One way is to  care employees and empower them. (George 1992)There exists an interaction between  the desired results and customer satisfaction, customer loyalty and customer retention. CHAPTER THREE RESEARCH METHADOLOGY 3.0 INTRODUCTION Research methodology is defined as the analysis of the principles of methods, rules,  and postulates employed by a discipline or the development of methods, to be applied  within a discipline or a particular procedure or set of procedures. It should be noted that  methodology is frequently used when method would be more accurate. Methodology  includes the following concepts as they relate to a particular discipline or field of inquiry: 1. A collection of theories, concepts or ideas. 2. Comparative study of different approaches. 3. Critique of the individual methods. Methodology refers to more than a simple set of methods; rather it refers to the rationale  and the philosophical assumptions that underlie a particular study. This is why scholarly  literature often includes a section on the methodology of the researchers. Another key,  although arguably imprecise, usage for methodology does not refer to research or to the  specific analysis techniques. This often refers to anything and everything that can be  encapsulated for a discipline or a series of processes, activities and tasks. Research is the search for knowledge through objectives and systematic method of  finding solutions to a problem. It is an original contribution to the existing stock of  knowledge making for its advancement. It is also pursuit of truth with the help of study  observation comparison and experiment and it is the science of studying how a  research is done. This chapter outlines the various stages of the research  methodology. Namely sampling procedures, data collection methods, questionnaire  design and coding of questionnaire etc. 3.1 RESEARCH STRATEGY For the purpose of this research, questionnaire-filling strategy is chosen. Primary data  will be collected through the survey questionnaire. The required information was  collected from the selected areas of Lahore in Pakistan, in order to have a complete  knowledge and insight about the activities of the banking. The study will involve a sampling of 130 individual customers of banking from a Lahore  in Pakistan. CHAPTER FOUR 4.0 TIME SCALE The following Gantt chart represents the estimated time the researcher plans on  covering the research. November December January February No ACTIVITY 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Submission of proposal waiting 1 for approval 2 Read literature 3 Introduction objectives of study 4 Draft literature review 5 Draft methodology Write questionnaire, send 6 questionnaire 7 Updating chapter 1 2 analysis Draft submission, review of all 8 chapters 9 Conclusion abstract 10 Final review of all chapters 11 Final draft submission 4.1 TIME A time resource, available is approximately 3 months (Beginning from proposal  approval) and its management has been planned as shown in the Gantt chart above,  from the Gantt chart. 4.2 COST The cost of whole research is fully sponsored be researcher. This includes all costs  incurred, inclusive of printing, transport, and communication costs. 4.3 OTHER RESOURCES Other resources that the researcher is planning to use are SPSS version 16.0 for this  analysis and other statistic analytical tools.

chinese religous and ethical systems :: essays research papers

Chinese Religious and Ethical Systems   Ã‚  Ã‚  Ã‚  Ã‚  It has often been said that the Chinese are not deeply religious. It is true that they have shown a comparative indifference to metaphysical speculation; Chinese culture was perhaps the first to develop an intellectual skepticism concerning the gods.   Ã‚  Ã‚  Ã‚  Ã‚  Confucianism Confucius (Kong Zi) lived from 551 to 479 BC in the state of Lu (in modem Shandong province). He came from a family of officials and his concern was with the restoration of the Way (Dao) of the ancient sages. His teaching was therefore related mainly to society and its government. He advocated strict conformity, and thought that fostering correct behavior, within the context of the family, would produce an ordered society. He was not particularly interested in religion, except insofar as it related to social life. However, in 59 AD during the Han dynasty, it was decreed that sacrifice should be made to Confucius and this began a process that was to make Confucian philosophy into the foundation of the Chinese political order. Confucius himself had only accepted the legitimacy of sacrifice to one's own ancestors, but from now on an official Confucian cult emerged, with its own temples. It gradually became linked with the state cult of the Emperor. From the fifth century AD Confucian orthodoxy retreated before the popularity of Buddhism and Daoism. But a renaissance came during the Sung dynasty when Confucianism responded to the challenge and developed its own metaphysics. This new trend is known as Neo-Confucianism, and its main exponent was Zhu Xi (1130-1200). It subsequently became the main orthodoxy of the scholar officials until the demise of the imperial system in 1912. In contemporary China, the Confucian cult has disappeared, but the Confucian approach to government and society retains a powerful hold on many people.   Ã‚  Ã‚  Ã‚  Ã‚  Daoism (Taoism) The origins of Daoism are obscure, but it is first seen as a rival to Confucianism. The teachings of early Taoism are ascribed to Lao Zi in the fifth century BC who is the reputed author of the most influential Taoist text, the Dao De Jing (The Way and its Power). Where the Confucian stressed ethical action, the Taoist spoke of the virtue of Wu Wei (non-action), going with the flow of things. Like the Confucians, Daoists looked back to a golden age. The good ruler, they thought, guided his people with humility, not seeking to interfere with the rhythms of social life conducted within the larger patterns of the natural world and the whole cosmos.