ISM Lecture 3

7 flashcards · Other · by Daniel F.

  1. Non-market strategy

    differ from market strategies by focusing on shaping the rules and creating new markets rather than merely competing within existing ones. These strategies aim to: Create advantages or reduce disadvantages for the firm. Impose disadvantages on competitors.

  2. How to conduct non market analysis

    Market Analysis = Porter's 5 Forces Non-Market Analysis = Baron's 4 Is Issues: Identifying challenges or opportunities e.g., how Chinese EV firms can reduce EU import taxes Institutions: Engaging with relevant bodies like regulatory agencies, trade associations, and media. e.g. chinese ev has to engage EU commission, auto trade associations, media Interests: Understanding stakeholders such as the public, industry associations, and political groups. e.g. for chinese ev its EU public, populist pa…

  3. How to engage with the non-market / react to institutional pressure from all 3 forms of institution Coercive Pressure: Formal rules and regulations enforced by governmental bodies or powerful stakeholders. Normative Pressure: Norms and values about how things should be done, often established by professionals and experts. Mimetic Pressure: Pressure to imitate successful organizations in the field.

    Olver 1991: Acquiesce: Habitual compliance with institutional norms. Habit: Unconsciously following taken-for-granted norms Imitation: Consciously or unconsciously mimicking successful organizations Compliance: Consciously obeying rules and norms Compromise: Negotiating acceptable solutions or balancing conflicting demands. Balancing: Trying to achieve parity between stakeholder expectations Pacifying: Placating institutional sources Bargaining: Negotiating with institutional stakeholders Avoid…

  4. Importance of non-market strategies

  5. Corporate Political Activity (CPA)

    Corporate attempts to shape government policy in ways favorable to the firm

  6. How to decide how to do CPA

    Hillman & Hit, 1999 Approach Transactional approach: Engaging on an issue-by-issue basis with a short-term focus Relational approach: Building lasting relationships with political actors for long-term engagement Level of Participation Act individually: Pursuing political strategies alone (usually large firms) Act collectively: Cooperating with other firms, industry associations, or NGOs (usually associations) Type of Strategy Information strategy: Providing policymakers with specific informatio…

  7. Exxon mobile case

    Approach: Relational Built long-term relationships with policymakers across multiple issues (1970s-2010s) Donated $1.5M to Bush campaign (2000), leading to Kyoto Protocol withdrawal (2001) Placed former CEO Rex Tillerson as Secretary of State under Trump Participation Level: Combined Individual action: Direct lobbying as market leader, funded climate denial research Collective action: Established Global Climate Coalition (1989) to collectively oppose climate regulation Engagement Strategies Inf…