W1 - LECTURE Flashcards
What is the definition of Politics in the context of business?
The process of influencing decisions related to resource allocation and governance.
What does Policy refer to?
The formal decisions, rules, and guidelines made by governing institutions.
Define Nonmarket Strategy.
Actions taken by firms to influence the political, legal, and social environment.
What are the components of the Market Environment?
- Customers
- Firm
- Suppliers
- Competitors
What characterizes the Non-Market Environment?
- Interactions with stakeholders
- Voluntary and involuntary actions
- Unpredictable factors
Fill in the blank: The U.S. government raised national security concerns regarding TikTok’s _______.
[Chinese ownership]
What were the business impacts of the TikTok ban?
- Revenue Loss
- User Distrust
- Operational Disruptions
What is the Yahoo! Incident?
In 2004, Yahoo! provided Chinese authorities with email account information leading to the arrest of a journalist.
True or False: The nonmarket environment is solely focused on economic transactions.
False
What are the 4 I’s of the Non-market Environment?
- Issues
- Institutions
- Interests
- Information
What does the Non-market environment impose?
Different principles and values compared to the market environment.
What is the outcome of integrating the nonmarket strategy with market strategy?
Actions taken in the nonmarket environment to create value by improving overall performance.
Fill in the blank: The Non-market environment is characterized by _______ and _______.
[Formal laws and regulations], [Informal social pressures]
What are the components of Market Competition?
- Money
- Leadership
- Flexibility
- Predictability
- Value
What are the components of Non-market Competition?
- Information
- Coalitions/Collaboration
- Consistency
- Uncertainty
- Values
What approach should be taken when developing a non-market strategy?
Always start from the issues and conduct analysis for each issue separately.
What did Novartis attempt to do in India regarding its patent?
They appealed to the Supreme Court after their patent was denied.
What was the main argument of Novartis in their advocacy efforts?
Emphasizing the importance of patent protection for medical advancements.
What is the key takeaway regarding patent strategy in emerging markets?
It must navigate legal, political, and social challenges.
What is the significance of the TikTok case in business and politics?
Illustrates how political scrutiny can threaten a successful business model.
What is the primary focus of nonmarket analysis?
To integrate nonmarket issues that affect the firm and complement market actions.
