Strategy Non Market Environments

Strategic caution in Non-market surrounds 05/11 06/11. Cheetah / hyaena video ? Analogues to business world o Make kill, scarce dirty dog you receive when scavengers come o Eat de valuated if youre a cheetah ? rate Creation o Economic exercise ? Value Capture o Power, leverage Companies you create (value you create) must be apprised of game to come (value capture) Boeing ? Site dissemination throughout US, most Congressional districts o Helps when employing / bidding for contracts o Decision devising process in Congress ? If scarce worried intimately capturing an antelope (market surround), wouldnt soma locations for supply chain this elbow room ?Recognizing hyenas (non-market environment effects) o How to ensure capture value o Spread out crossways country (multiple congressional districts) o Helps with acquire funding (congressionally directed contracts) ? GM locations ar more concentrated o operationally shakes more sense, political relation werent imperative decision making o However, when GM needs something from Government, may be in worse position than Boeing Wal-Mart ? non in bigger cities o Local shimmerers (protected), politics bottom of the inning block entry o How negotiate, work around? securities industry vs.Nonmarket Environment ? food market proceeding be typi expecty consensual and bilateral o Voluntary, extreme 11 (bilateral negotiations between parties) ? Nonmarket transactions are rarely consensual and are almost always multilateral ? Market environment focuses on economics ? Nonmarket environment combines political science, psychology and ethics. Integrated, passenger carial schema ? aspiration as a Manager is to integrate Market and Non-market strategy iv Is (way to analyze emplacement) ? Issues ? Interests ? Institutions ? study Diebold vitrine ?Risks (reputational, new technology) o flock we create Ballot Security avail arm, to help solve hassle and in addition create profitability for firm? ? pers ona issues ? Communication / marketing plan ? exit out to political parties, special chase assorts ? Diebold should baffle known Bev Harris, crawfishn her call ? Diebold files suit under DMCA (may non create been best idea in non-market environment) o Protecting access to information becomes ecumenical cause ? government is unstable o Have to be farsighted o Can not be myopic, take short term view ? Pays to roundabout the genda (want to be the one who makes theproposal) o object helps define the winners and losers o Want to be the agenda enuredter Observations on Nonmarket system & Analysis ? Issues generate nonmarket competition ? Market rivals earth-closet be nonmarket allies spinal fusions can be good ? Your choice of objectives determines who is adjust with and against you ? Alignments of interests are often issue-specific ? Business can represent those who would otherwise be unrepresented ? institutional features matter e. g. , Federal versus State jurisdictio n ?When attempting to stop an issue, proposing better alternatives is often effective o Bring other interests into play ? If there is a problem for you at the keep company level (e. g. , appearance of corruption), past form coalitions and work on behalf of coalition o J&J associate with other pharmaceutical, health bid orgs, activist themes (help prognosticate people are not playing in corrupt fashion, but for greater public good) o Can set off to not just specific industry, but all businesses in area (e. g. , chamber of commerce), etc. ? When commending about coalitions pack who benefits from my success on this issue?Goal of Course ? Dont intromit that rules are fixed (rules are not fixed) o But think about is there a way that we can change the rules to benefit the company o Dont recede opportunity to change b/c arrest not considered ? Politics is about public good, but also essentially about redistribution o How can set strategy to affect positively for our plaque ? Complication of Politics o lot are motivated to go to take booth on moral concerns on with economic o Sometimes issues that can be larger-than-life motivators may not have as large an come to as other concernsLuxury measure Case ? 1990 Tax was introduced on sumptuousness items o Huge political fight, tiny revenue generator (not important in background of trying to balance the federal budget) ? wherefore was the tax introduced if entrust not have large impact? ? May have just been for the perception create concept that care about fairness in way that doesnt create large new taxes for parties ? Core constituents feel that they care about values they run on ? May have been to help reelection problem ?Opposed to tax consumers of luxuriousness goods, manufacturers of luxury items, retailers of foreign luxury items ? Supporters of Luxury Tax foreign manufacturers of boats, people who dont buy luxury items, domestic manufacturers of luxury cars, manufacturers of substitutes for luxury items, some NGOs (anti-fur, anti-diamong) o not an accident that bill does not apply to GM (b/c GM was on committee working on bill) ? When make predictions in the political arena, are loss to ask o Who are important interest groups, who go away have great power on the issue ?Large issue of voters ? Wealth / contributions / participation of group ? Do you have connections with key members of Congress? ? dispersion of voters ? Ability to get media attention (celebrities, experts) ? Is the group organized? o Who has power, who has incentives? ? Can go a long way to making predictions once have the details of the situation ? What determines the incentives for action? o Magnitude of benefits will receive ? As a group ? As individuals (per capita) ? Substitutes and Opportunity cost ? How does this equate to other issues ?Expected Return on Effort ? (how much work will take / what is expected impact) ? Potential reputational be ? Luxury Tax Coalition ? Yachts Not as man y manufacturers, not as well distributed (concentrated in states like Rhode Island, smaller state) ? Foreign manufacturers are not voters unretentive position when entering country ? interbreed of manufacturers (Horizontal across Rent Chains) Airplanes, Boats o Distributed Politics Spreadsheet, Cemex case ? ? ? See spreadsheet for Distributed Politics notes modified Lowi Matrix Cemex case notes on handouts