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Non-Market Strategy Relations (19BBA80008)

General information

Type:

OP

Curs:

2,3

Period:

S semester

ECTS Credits:

2 ECTS

Teaching Staff:

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

Group Teacher Department Language
Ed: 2 Tamyko Ysa Figueras Dirección General y Estrategia ENG

COURSE CONTRIBUTION TO PROGRAM


This course will explore the relationship between business and its stakeholders - including the government, social movements, NGOs, 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 a managerial framework for effective nonmarket management.

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

Course Learning Objectives


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. It is developed towards government, press and influential groups.

Through non market strategies, groups can reshape the rule of the game through laws and regulation. It can also be driven by social pressure, media and education. Tools for non market strategies are: events, demonstrations, networking, sponsoring, research, publications, but also the consequences of law suits.

Connected to lobbying, nonmarket strategies are more global and long term focus. Managing nonmarket strategies invite firms to care about their reputation, values and social impact.

"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.

CONTENT

1. FOCUS 1: Understanding the Non Market Environment of the Firm and its Relationship to the Market Environment


Cases:
* Market and Non market Environments: AIG and the American Taxpayers.

Non Market Actors:
* Public Opinion and Social Movements: Wal-Mart: The Store Wars.
* Activists and Non Governmental Organizations: Of Orangutans and Chainsaws: Cargill Inc. Confronts the Rainforest Action Network Advocacy.
* The Media: Unintended Acceleration: Toyota's Recall Crisis.

Readings:

* Organizational Meeting: Bach, D., Allen, D. 2010. "What Every CEO Needs to Know About Nonmarket Strategy" Sloan Management Review 51 (3): 41-48.

* Market and Non Market Environments: 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


Cases: Implementing Non market Strategies

* Electoral Politics: Rethinking Political Activity at Target.
* Legislative Lobbying: Lobbying for Love? Southwest Airlines and the Wright Amendment.
* Industry-wide Coalitions: Politics of Tobacco Control: A History of the U.S. Tobacco Industry.


Readings:

* Non Market Issue Analysis: 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.

* Non market Strategy Formulation: 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.

Implementing Non market Strategies
* Electoral Politics: Oberholzer-Gee, F., Cantrill, L., Wu, P. 2007. "Note on Lobbying" Cambridge, Mass.: Harvard Business School Press.

* Grassroots Advocacy: Walker, E. 2014. Grassroots For Hire. Cambridge, UK: Cambridge University Press. Chapter 7 (p. 227-256).

* Kennedy, M. 2013. Social Media provides a megaphone for organizations intent on shaping the corporate environment. Strategy and Leadership, 41(5): 39-47.


3. FOCUS 3: Examining the Role of Non Market Factors across Different Substantive Public Policy Areas of Concern to Firms


Cases:

* Regulation Overview: Uber: 21st Century Technology Confronts 20th Century Regulation.
* Environmental Regulation: Keystone XL Pipeline.
* Financial Regulation: The Volcker Rule: Financial Crisis, Bailouts, and the Need for Financial Regulation.

Reading:

* Prakash, A. 2002. Beyond Seattle: globalization, the nonmarket environment and corporate strategy. Review of International Political Economy, 9(3).

4. FOCUS 4: Exploring How Non Market Factors Vary Cross-nationally and How They Are Shaped by International Agreements


Cases:
* Non market Issues in EU: International Lobbying and the Dow Chemical Company
* Non market Issues in Latin America: Colbun and the Future of Chile's Power.
* Non market Issues in China: Google in China.
* Non market Issues in Africa: Life, Death, and Property Rights: The Pharmaceutical Industry Faces AIDS in Africa.
* International Trade Issues: Chiquita Brands International.

Readings:
* Maxwell, D., Mills, J., Shilshon, S. 2014. Making the consumer case for major infrastructures. Rethinking Infrastructure: Voices from the Global Infrastructures Initiative. McKinsey & Co
* Ghemawat, P. 2001. Distance still matters. The Hard Reality of Global Expansion. Harvard Business Review. September: 137-147.

5. FINAL PROJECT/ CASE

Methodology

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

ASSESSMENT

ASSESSMENT BREAKDOWN

Description %
Case write ups 30
Peer Evaluation 10
Class participation 20
Final project/ case 40

Assessment criteria

Given the case-based nature of the course, attendance is required, and active participation of all course members is critical.

Course assessment is based on:
- Case write-ups: 30%
- Peer evaluation: 10%
- Class participation: 20%
- Final Project/case: 40%

Bibliography


David P. Baron, Business and Its Environment. Upper Saddle River, New Jersey: Pearson

Timetable and sections

Group Teacher Department
Tamyko Ysa Figueras Dirección General y Estrategia

Timetable

Group Teacher Department
Ed: 2 Tamyko Ysa Figueras Dirección General y Estrategia

Timetable Ed: 2