5- Strategic Management & Corp Public Policy

Question 1

4 key strategy levels

Answer 1

Enterprise level – broadest level, what is the role of the org in society? Shown in vision, mission, value statement?

Corporate level - How should we compete in a given business?

Functional - how should I firm integrate it’s various Sub functional activities and how should these activities be related to changes taking place in diverse functional areas.

Question 2

Institutions and CSR

A decision making framework

Answer 2

Types of FDI, insitutional distance, liability of foreigners, institutional void, political CSR.

Question 3

Institutional distance

Answer 3

Institutional distance: home and host country stakeholder pressures - standards, practices, ethics, laws, culture, customs, systems of government, social economic system

Question 4

Liability of foreignness

Answer 4

Liability of foreignness: lack of legitimacy in foreign markets due to diff formal/informal institutions: laws and regulations, social norms, culture.

Unfamiliarity hazard: Lack of experiential knowledge, difficult to get assets and information.
Discrimination hazard: Differential treatment of foreign firms, exclusion from tenders, don’t buy foreign.
Relational hazard: uncertainty regarding stakeholders, governance and transaction costs.

Question 5

Institutional void

Answer 5

Absence of marketing intermediaries, formal institutions (regulations) that govern market intermediation and contract enforcement (policing, court system)

IV exists: implementation capacity (gov staffing), other priorities, corruption.

Question 6

Political CSR

Answer 6

Entails those responsible business activities that turn Corporations into political actors, by engaging in public deliberations, collective decisions, and the preservation of public goods or the restriction of public bads in cases where public authorities are unable or unwillingness to fulfil this role.

• framework