Non Market Strategy (CF85092)

General information

Type:	OP	Curs:	1	Period:	S semester
ECTS Credits:	3 ECTS

Teaching Staff:

Group	Teacher	Department	Language
	Tamyko Ysa Figueras	Dirección General y Estrategia	ENG

Seating: Maximum 30 students per course.
Students that had attended to "non market strategy" courses previously are highly discourage to participate in this course.

This course will explore the relationship between business and its stakeholders - including the government, social movements, media, and activists- around the world, with the goal of preparing you, to develop and implement non market strategies. Our goal is to provide you with managerial frameworks for effective nonmarket management. For you to understand the strategic and reputational nature of crisis, be prepared, and understand that successful non market strategies combine relational and transactional strategies.

The course will consist of case-based discussions and lecture will be kept to a minimum.

Mastering markets is no longer enough. Business operates in both a market and a nonmarket environment. Successful corporate strategy aligns the firm's capabilities with the demands of both its market and nonmarket environment.

Multinational companies are increasingly affected by government policy, changing regulations, activist pressure, and media scrutiny - anywhere in the world and often instantaneously.

Non market strategy is a way to pursue strategic goals through political and social leverage. That part of management involving government, regulators, civil society and the media.

Non market strategy helps groups gain soft power and influence and use them to their competitive advantage.

"The biggest single change in management during my career has been the increase in time managers spend dealing with government.?

Edmund T. Pratt, Jr., Chairman and CEO of Pfizer Inc.


The specific goals of this course are:

- To Understand the Non Market Environment of the Firm and its Relationship to the Market Environment
- To Learn How to Develop a General Non Market Strategy for a Firm and How to Evaluate the Efficacy of Different Non Market Tactics
- To Examine the Role of Non Market Factors across Different Substantive Public Policy Areas of Concern to Firms
- To Explore How Non Market Factors Vary Cross?nationally and How They Are Shaped by International Agreements
- To experience the case method.

By the end of the course, participants are expected to have acquired the strong non market strategy fundamentals and be capable of developing and implementing a non market strategy. They should be able to understand, discuss and define non market strategies and tactics, and care about firm reputation.

1. FOCUS 1: Understanding the Non Market Environment of the Firm and its Relationship to the Market Environment Understanding the Non Market Environment of the Firm and its Relationship to the Market Environment - Market and Non market Environments - Non Market Actors Case 1: AIG and the American Taxpayers (A). HBS 113124-PDF-ENG Case 2: Of Orangutans and Chainsaws: Cargill Inc. Confronts the Rainforest Action Network Advocacy. Ivey Publishing W12080-PDF-ENG Readings: - Bach, D., Allen, D. 2010. ¿What Every CEO Needs to Know About Nonmarket Strategy¿ Sloan Management Review 51 (3): 41¿48. - Baron, D. 1995. ¿Integrated Strategy: Market and Nonmarket Components¿ California Management Review 37 (2): 47¿65.

2. FOCUS 2: Learning How to Develop a General Non Market Strategy for a Firm and How to Evaluate the Efficacy of Different Non Market Tactics Learning How to Develop a General Non Market Strategy for a Firm and How to Evaluate the Efficacy of Different Non Market Tactics - Implementing Non market Strategies - Electoral Politics - Industry-wide Coalitions Case 3: Rethinking Political Activity at Target. Ivey Publishing W12350-PDF-ENG Case 4: Politics of Tobacco Control: A History of the U.S. Tobacco Industry. HBS KEL062-PDF-ENG Reading: - Hillman, A., Hitt, M.. 1999. ¿Corporate Political Strategy Formulation: A Model of Approach, Participation, and Strategy Decisions¿ Academy of Management Review 24 (4): 825¿842.

3. FOCUS 3: Examining the Role of Non Market Factors across Different Substantive Public Policy Areas of Concern to Firms Examining the Role of Non Market Factors across Different Substantive Public Policy Areas of Concern to Firms - Regulation Overview - Financial Regulation Cases 5: Uber: 21st Century Technology Confronts 20th Century Regulation. Stanford Graduate School of Business P81-PDF-ENG Case 6: The Volcker Rule: Financial Crisis, Bailouts, and the Need for Financial Regulation. Kellog School of Management KEL703-PDF-ENG Reading: - Bonardi, J.P., Hillman, A., Keim, G. 2005. ¿The Attractiveness of Political Markets: Implications for Firm Strategy¿ Academy of Management Review 30 (2): 397¿413.

4. FOCUS 4: Effectiveness of grassroots campaigns Effectiveness of grassroots campaigns - Public Opinion and Social Movements - Grassroots advocacy Case 7: Wal-Mart: The Store Wars. Kellogg School of Management KEL658-PDF-ENG Case 8: Keystone XL Pipeline. HBS 9-713-039 Readings: - Walker, E. 2014. Grassroots For Hire. Cambridge, UK: Cambridge University Press. Chapter 7 (p. 155-191). - Maxwell, D.;, Mills, J., Shilshon, S. 2014. Making the consumer case for major infrastructures. Rethinking Infrastructure: Voices from the Global Infrastructures Initiative. McKinsey & Co.

5. FOCUS 5: How to conduct effective strategic planning in the context of diverse international regulatory environment and protectionism How to conduct effective strategic planning in the context of diverse international regulatory environment and protectionism Case 9: Colbún and the Future of Chile¿s Power. HBS 5-713-047 Case 10: Chiquita Brands International. HBS 9-797-015

6. FOCUS 6: Exploring How Non Market Factors Vary Cross-nationally and How They Are Shaped by International Agreements Exploring How Non Market Factors Vary Cross-nationally and How They Are Shaped by International Agreements - Comparing non market environments - Non market Issues in China - Non market Issues in Africa Case 11: Google in China (A). HBS 510071-PDF-ENG Case 12: Life, Death, and Property Rights: The Pharmaceutical Industry Faces AIDS in Africa. HBS 702049-PDF-ENG Readings: - Ghemawat, P. 2001. Distance still matters. The Hard Reality of Global Expansion. Harvard Business Review. September: 137-147. - Prakash, A. 2002. Beyond Seattle: globalization, the nonmarket environment and corporate strategy. Review of International Political Economy, 9(3).

7. FOCUS 7: Active non market strategies: lobbying Active non market strategies: lobbying Case 13: Lobbying for Love? Southwest Airlines and the Wright Amendment. HBS 9-707-470 Case 14: International Lobbying and the Dow Chemical Company. HBS 9-710-027 Reading: - Oberholzer-Gee, F., Cantrill, L., Wu, P. 2007. ¿Note on Lobbying¿ Cambridge, Mass.: Harvard Business School Press.

8. FOCUS 8: Reactive non market strategies Reactive non market strategies - The Media - Shapeholders Case 15: Unintended Acceleration: Toyota¿s Recall Crisis. Kellogg School of Management KEL598-PDF-ENG Reading: - Kennedy, M. 2013. Social Media provides a megaphone for organizations intent on shaping the corporate environment. Strategy and Leadership, 41(5): 39-47.

9. Case Report or/ and exam

To achieve the objectives of the course, the format of it would be based on case studies, group exercises and a mix of lectures and class discussions.

Case Studies. Generally, the first part of the sessions will be devoted to the analysis and discussion of cases. The case method is one of the most effective pedagogical tools to sharpen your analytical and decision-making skills, as it requires you to be an active participant in marketing decisions. Cases intend to give you practice in assembling data, supporting and discussing decisions. Moreover, the case method provides a vehicle by which to apply theories, concepts, and frameworks that we discuss in class or which you find in the assigned readings. Finally, the discussion constitutes an opportunity to defend your position and to learn from others, by listening to their comments and criticisms. Everything on a "safe environment", where there are low risks when mistakes are made. Classrooms are our training environments to prepare you for business challenges.

When selecting the cases, we have tried to choose cases to be both interesting and relevant for participants. We have chosen cases from different industries, geographies and typologies of companies in order to cover a wide range of business problems.

The objective of the discussions is to examine completely all aspects of the situation and come up with solutions. In these sessions, we will act as facilitators. You should be aware that the direction and quality of the discussion is the collective responsibility of the group, not only our responsibility as the course instructors.

Lecture/Discussion. The final part of the sessions follows a lecture/discussion format. These sessions are devoted to presentation and discussion of frameworks, concepts and theories that are useful for marketing practice. In general, these lectures are strongly linked to what we have discussed previously during case analyses.

The lecture/discussion sessions are often accompanied by assigned readings, which may be articles, book chapters or class notes. We do expect that you debate some of the ideas and contribute with your experiences. We also expect from you that you read and study the assigned material prior to class, as this accelerates the pace of the session and make discussions richer.

ASSESSMENT BREAKDOWN

- Packet of cases and readings (available through Moodle).

The following book is recommended:
- David P. Baron, Business and Its Environment (7th Ed.) Upper Saddle River, New Jersey: Pearson. ISBN 9780132620550.

Additionally, specific materials (articles, books, videos, pieces of news) could be recommended for each topic.

Group	Teacher	Department
	Tamyko Ysa Figueras	Dirección General y Estrategia