Test bank and solution strategy and the nonmarket environment (1)
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Test bank and solution strategy and the nonmarket environment (1)
PART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)f the nonmarket environment. provide frameworks for characterizing that environment, and present a framework for understanding the development of nonmarket issues. The nonmarket envữonment is characterized by the four Is: issues, interests, institutions, and information. Tills characterization is il Test bank and solution strategy and the nonmarket environment (1)lustrated 111 some detail for the automobile industry'. The emphasis of the approach maintained throughout the book is on nonmarket strategy; i.e.. acTest bank and solution strategy and the nonmarket environment (1)
tions by managers to improve the per formance of their firms in both then market and nonmarket environments.The field of business and its environment PART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)ure 1-1. an example involving Pizza Hut IS presented below. The basic runt of analysis is a nonmarket issue, and in the Pizza Hut example the issue IS how to open the institutional (hospitals, schools, etc.) market to fresh pizza The auto industry example in the chapter illustrates the types and ran Test bank and solution strategy and the nonmarket environment (1)ge of issues facing an industry.This chapter also presents a characterization of the pattern of development of a nonmarket issue and discusses the cauTest bank and solution strategy and the nonmarket environment (1)
ses of change in the noiunarket envn onment and how issues are placed on rhe nonmarket issue agenda. The nonmarket issue life cycle 111 Figure 1-2 IS PART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)he book is how firms and their managers can participate effectively and responsibly in influencing the development of those issues.A lectrue based on Chapter 1 might begin with Figure 1-1 and illustrate the interactions between the market and nonmarket environments using the auto industry as an exam Test bank and solution strategy and the nonmarket environment (1)ple, hl an introductory lecture it is important to discuss those factors that distinguish rhe nonmarket environment from the market environment. IssueTest bank and solution strategy and the nonmarket environment (1)
s such as fuel economy standards have clear implications for the design and marketing of autos and for the likely success of U.S. and foreign manufactPART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)sue can be used to point to the presence of interest and activist gloups and then role in the nonmarket environment. (Activists and NGOs are considered 111 more detail 111 Chapter 4.) The Pizza Hut example presented below can also be used to illustrate the interrelationships.In discussing nonmarket Test bank and solution strategy and the nonmarket environment (1)issues and the nonmarket environment. It IS important to empliasize the role of managers both in addressing the issues and in formulating strategies.Test bank and solution strategy and the nonmarket environment (1)
That is. management is in the center of Figure 1-1. Specialists, such as lawyers and consultants, can be important resources, but managers ultimately PART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)m the point of view of a firm dealing with an issue in its environment The unit of analysis is thus the conjunction of a nonmarket issue and the firm37The roles of institutions and interest groups should also be pointed out. although they are not considered in detail until subsequent chapters. It wo Test bank and solution strategy and the nonmarket environment (1)uld be usefill to emphasize that institutions are not only formal and public, such as Congress and Nil ISA. but are also private, such as arbitrationTest bank and solution strategy and the nonmarket environment (1)
mccltanisms. or collections of priv ale organizations as in the case of the news media (considered in Chapter .3). The Pizza Hut example can lie used PART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1) envir onment in terms of the 1 is. The Nonmarket Environment of McDonald’s case provides an opportunity to consider this characterization. Another possibility is to discuss the origins of nonmarket issues such as those for tire auto industry or those on McDonald's agenda. Some of those issues arc t Test bank and solution strategy and the nonmarket environment (1)ire result of scientific discovery and technological change and some are the result of new understandings. For example, the concerns about the fat andTest bank and solution strategy and the nonmarket environment (1)
salt content of fast foods are a result of both recent medical studies and the heightened concent of many people about their health. 1 he chapter casPART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)on, and intellectual property protectionMany nonmarket issues arise because of moral concerns, and those moral concents are the subject of Pan V of the book. The Graduation Cards example illustrates the connection between moral concerns and the development and progress of nonmarket issues. Additiona Test bank and solution strategy and the nonmarket environment (1)l information on the example is presented below.The nonmarket issue life cycle depicted in Figure 1-2 reflects a progression for many issues. It beginTest bank and solution strategy and the nonmarket environment (1)
s with the origins of the issue and its identification by what are referred to here as interest gl oups. The auto safety example is a good illustratioPART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)sess where an issue is in its issue life cycle. It is also useful to illustrate in which institutional arenas an issue is considered at the various stages ill its development. .An important point to make in discussing nonmarket issues is that the firm rarely has control over events or the resolution Test bank and solution strategy and the nonmarket environment (1) of a nonmarket issue. Instead, a firm has control over its nonmarket strategy, and that strategy may influence the resolution of the issue. NonmarketTest bank and solution strategy and the nonmarket environment (1)
issues are generally contested, and their resolution is often determined by a competition of strategics of lire interests participating in tire contePART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)e of the Interactions of Market and Nonmarket Strategics: Pizza HutThis example illustrates rhe use of nonmarket strategies to shape market opportunities (Figure I -1). (Figure 2-2 illustrates the control of market opportunities by government.)School cafeterias served nearly $500 million of pizza a Test bank and solution strategy and the nonmarket environment (1)year. Only frozen pizza was used, however, because freshly prepared pizza was effectively excluded by a U.S. Department of Agriculture (USDA) regulatiTest bank and solution strategy and the nonmarket environment (1)
on tlrat required inspection of any pizza with meat toppings lira t was sold at wholesale for resale, rhe same was true for other institutions such asPART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)zza Hut's overall business strategy was to become a "pizza distribution" company, and the institutional market was crucial to that strategy. According to Roger Rydell of Pizza Hut. schools were “‘a potentially enormous business for US. ... We'd like to have every one of our [4.000] delivery -capable Test bank and solution strategy and the nonmarket environment (1) runts nationwide serving at least one school.’”1 Since Pizza Hut was excluded from the institutional market by the USDA regulation, the task before PTest bank and solution strategy and the nonmarket environment (1)
izza Hut was to develop a nonmarket strategy to modify this regulation to allow school cafeterias and ultimately other institutions to order fresh pizPART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)tus of the USDA. From the perspective of a bureaucracy such as the USDA, an exemption from Its meat inspection responsibilities would be required It seems unlikely that the USDA would want to weaken its own inspection program. Indeed, the opponents of an exemption for fresh pizza, as led by the Nati Test bank and solution strategy and the nonmarket environment (1)onal Frozen Pizza Institute, sought to have the contentious issue resolved by the USDA. A resolution in that institutional arena would necessitate anTest bank and solution strategy and the nonmarket environment (1)
extensive administrative process requiring public healings, publication of proposed regulations in the Federal Register, a comment period, possible adPART ISTRATEGY AND THE NONMARKET ENVIRONMENT36Chapter 1Market and Nonmarket EnvironmentsThe objectives of tins chapter are to introduce the concept of Test bank and solution strategy and the nonmarket environment (1)er 10 for a discussion of this process.) Pizza Hut first attempted to obtain a USDA exemption without an administrative process but failed in Its attempt.The second institutional arena was Congress, which could enact legislation to overtruii regulations. Pizza Hut worked tluougli Congress to include Test bank and solution strategy and the nonmarket environment (1) a provision in a 1991 agriculture bill that would allow fresh pizza to be purchased by school cafeterias without USDA inspection The amendment directTest bank and solution strategy and the nonmarket environment (1)
ed the USDA to issue regulations by August 1992 allowing fresh pizza with meat toppings to be sold to private and public institutions.2 * Pizza Hut haGọi ngay
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