Nonmarket strategies

Question 1

What is Nonmarket Strategies

Answer 1

Stems from the institution-based view, company needs to conform to institutional pressures and adhere to the rules of the game for their survival.

Question 2

Factors of non-market environments

Answer 2

Industry regulations
Laws
Politics
Socio-cultural norms
Activism

Question 3

Main goal of nonmarket strategies

Answer 3

Shaping the rules
Creating new markets
Creating advantages or reducing disadvantages for the firm
Creating disadvantages or reducing advantages from competitors.

Question 4

Framework to analyze non-market analysis

Answer 4

Baron’s 4 Is

Question 5

Baron’s 4 I’s

Answer 5

Issues
Institutions
Interests
Information

Question 6

Issues Def

Answer 6

What non-market strategies address. Ex: How do Chinese firms get the EU to reduce import taxes?

Question 7

Institutions Def

Answer 7

Institutions are the relevant set of bodies that the firm must interact with in the course of its non-market behavior. Ex: To do profitable business in Europe, Chinese firms will have to engage with European Commission in Brussels, Auto trade associations, and the media.

Question 8

Interests Def

Answer 8

Interests are individuals and groups with preferences about, or stake in, the non-market discussion. Ex: the European public, the populist parties, the auto industry association (including components suppliers)

Question 9

Information Def

Answer 9

Information pertains to what the interested parties know, or believe to know, about the matter at hand. Ex: how are the Chinese EV firms able to make cars so cheap even when labor is no longer so cheap there?

Question 10

5 Types of Non market Strategies

Answer 10

Acquiesce
Compromise
Avoid
Defy
Manipulate

Question 11

3 Main Characteristics of Acquiesce

Answer 11

Habit
Follow the taken-for-granted rules or norms.

Imitate
Mimic institutional models of those that are successful or those that you trust

Comply
Obedience to required values and norms

Question 12

3 Main Characteristics of Compromise

Answer 12

Balance
Equally, satisfy the needs of all party

Pacify
Not aggravating the parties

Bargain
Negotiate a concession

Question 13

Main Characteristics of Avoid

Answer 13

Conceal
Act like you’re complying

Buffer
Add distance from the customer by adding layers to the organization

Escape
Exit the domain within which pressure is exerted

Question 14

Main Characteristics of Defy

Answer 14

Dismiss
Ignore the institutional rules and values

Challenge
Go on the offensive, fight the rule on emissions on the basis that the firms existing pollution standards are above reproach

Attack
Assault, belittle, or denounce institutionalized values and those that express them.

Question 15

Main Characteristics of Manipulate

Answer 15

Co-Opt
Import influential constituents

Influence
Shape Values and criteria (Lobby)

Control
Build power with the goal of dominating the institutional processes

Question 16

Passive Reaction Characteristics

Answer 16

Comply, bargain, conceal, buffer, escape

Question 17

CSR Characteristics

Answer 17

comply, pacify, buffer, challenge, influence

Question 18

CPA Charactheristics

Answer 18

bargain, challenge, attack, co-op, influence, control.

Question 19

3 Corporate Political Activities Decisions

Answer 19

Approach
Participation Level
Engagement Strategy

Question 20

2 Types of CPA Approach

Answer 20

Transactional Approach
Relational Approach

Question 21

Transactional Approach

Answer 21

Involved only in salient and specific issues, strategy formulated after an issue arises, relatively short-term orientation.

Question 22

Relational Approach

Answer 22

Pursue political strategies with a long-term orientation, build relationships with policymakers across issues, and over time, build political capabilities.

Question 23

2 Types of CPA Participation Level

Answer 23

Individual action
Solitary Involvement is often adopted by large firms and market leaders.

Collective Action
Collaboration and cooperation between firms on issues, eg industry associations.

Question 24

3 Types of CPA Engagement Strategy

Answer 24

Information Strategy
Financial Incentive Strategy
Constituency-building strategy

Question 25

CPA Information Strategy

Answer 25

Provide government policymakers with information to influence their actions.
Lobbying: Firms hire registered and well-connected lobbyists to advocate their policy preferences with legislative members. Is regulated.

Question 26

CPA Financial Incentive Strategy

Answer 26

The business provides incentives to influence government policymakers to act.
Election campaign contributions through Public Action Committees. Political consulting aid. Office personnel/others.

Question 27

CPA Constituency-building strategy

Answer 27

Businesses seek to gain support from other affected constituents to better influence policymakers to act in a preferred way.
Stakeholder coalitions, advocacy advertising, legal challenges.