2.6 Nonmarket strategies

Question 1

Three actors on for nonmarket strategy

Answer 1

1. Legal: laws
2. Social actors: greenpiece, etc
3. Political actors

Question 2

What is a nonmarket strategy

Answer 2

• Specifically coordinated execution of global activities to influence the
  firm’s social, political and legal context to achieve corporate objectives.

Question 3

When is a nonmarket strategy important

Answer 3

important when opportunities are:

1. controlled by government
2. challallenged by public pressure
3. moral concern

Question 4

Three strategies

Answer 4

1. Information strategy: providing specific info/preferences to policies
   - lobbying
   - research/results
   - technical reports/position papers
2. Financial incentive: alignening interest of policy makers with own financial interests
   - financial report
   - hiring with political experience
3. Reputation building: public support. reducing public pressure
   - mobilization linked to firm
   - corporate social responsibility
   - reduces likelihood of boycotts and environmental risks