Q&A Hero

Q: Bartlett and Ghoshal characterized market strategies as multidomestic, international, and global. Compare and contrast between the three types.

Q: Describe market and nonmarket strategies. Explain the significance of a nonmarket strategy.

Q: According to Wartick and Rude, who, among the following, must be involved for successful issues management? a) competitors b) government c) suppliers d) top management

Q: The evaluations of ethics claims and the application of normative principles occur in which stage of the framework for the analysis of nonmarket issues? a) screening b) identification c) analysis d) choice

Q: Which of the following stages in the framework for the analysis of nonmarket issues is based on the methods of economics, political science, and other social sciences and focuses on predicting the actions of interests and the consequences of alternative strategies? a) identification b) analysis c) choice d) screening

Q: Alternatives that are contrary to the law or company policy are eliminated in the ________ stage of the framework for the analysis of nonmarket issues. a) analysis b) choice c) enforcement d) screening

Q: Firms deploy nonmarket capabilities to ________. a) beat the competition b) create new markets c) test new strategies d) add value

Q: Positioning is often perilous. Which of the following companies had been lobbied heavily to increase its commitment to its own causes? a) Xerox b) GM c) Microsoft d) Starbucks

Q: What space had Microsoft largely ignored, relying instead on its aggressive approach to markets? a) legal b) public sentiment c) political d) commercial

Q: In legal space, ________ provide the most important protection for intellectual property for many industries. a) trademarks b) patents d) logos Answer: B

Q: Lawmaking and rulemaking take place in ________, where the formal rules of the game are made. a) political space b) legal space c) social place d) the space of public sentiment

Q: ________ is determined by the diverse interests, viewpoints, and preferences of the individuals in a society. a) Ethnic diversity b) Corporate social responsibility c) Public sentiment d) Public relations

Q: Which of the following is true of nonmarket positioning? a) It should be dictated by a firms market positioning or by those in its environment. b) It provides a platform on which both market and nonmarket strategies can be constructed. c) It is not influenced by the firms market strategy. d) It should neither be a conscious nor a strategic choice.

Q: The most effective means of integrating market and nonmarket strategies is ________. a) to incorporate nonmarket strategy formulation into the process of developing a market strategy b) to incorporate market strategy formulation into the process of developing a nonmarket strategy c) to incorporate both into the business strategy process d) to view both as separate strategies unified by the goal of profit maximization

Q: Which of the following is an example of a global market strategy? a) universal ethics principles b) intellectual property rights enforcement c) tax policy d) pharmaceuticals approval

Q: Which of the following is the final stage of the nonmarket issue life cycle? a) interest group formation b) legislation c) administration d) enforcement

Q: The nonmarket strategies focus on adaptation to change during which of the following stages in the nonmarket issue life cycle? a) interest group formation b) legislation c) administration d) enforcement

Q: Which of the following is the first stage of the nonmarket issue life cycle? a) issue identification b) interest group formation c) legislation d) administration

Q: Which of the following issues is most often the subject of public politics? a) environmental laws b) human rights c) health and safety Answer: D

Q: Which of the following issues is most often the subject of private politics? a) intellectual property protection b) privacy c) liability reform d) antitrust laws

Q: Which of the following characterizes nonmarket strategies? a) They are less important when opportunities are controlled by government. b) They are important when opportunities are controlled by markets. c) They are less important when protests, boycotts, and public criticism are more intense. d) They are decreasingly important due to issues such as privacy and protection of IP.

Q: In the United States, the regulation of telecommunications is being replaced by ________. a) nationalization b) market competition c) monopolization d) privatization

Q: Which of the following industries has the least government control? a) Local communications service b) Biotechnology c) Automobile d) Consumer electronics

Q: Governments often exercise considerable control over which of the following industries? a) consumer electronics b) software c) local telecommunications d) automobile

Q: Opportunities can be controlled by ________ at one extreme and ________ at the other extreme. a) competitors; customers b) customers; suppliers c) government; markets d) markets; buyers

Q: A firm that decides to enter a country that has open markets relies primarily on ________. a) a nonmarket strategy b) a market strategy c) a communist economic strategy d) a mercantile strategy

Q: A market strategy is ________ a) a concerted pattern of actions taken in the market environment to create value by improving the firms economic performance b) a concerted pattern of actions taken in the nonmarket environment to create value by improving the overall performance of a firm c) an elaborate and systematic plan of actions to achieve successful market capitalization d) usually never used by firms that decide to enter a country that has open markets or trade barriers

Q: The nonmarket environment is often more complex than the market environment, because public institutions are complex and a larger set of interests participate.

Q: The responsibility for addressing nonmarket issues should reside with operating managers and not with a separate staff unit.

Q: Granted rights are to be used to screen out alternatives in the analysis stage, whereas claimed rights are to be evaluated in the screening stage.

Q: Moral motivations are analyzed in the screening phase of analysis.

Q: The framework for analysis of nonmarket issues includes the screening of generated alternatives, the analysis of those alternatives, and the choice of a strategy.

Q: The value of a nonmarket capability depends on the effectiveness of a firms allies in addressing nonmarket issues.

Q: Expertise in dealing with the news media is a market asset.

Q: Positioning in legal space affects not only the liabilities to which a company is exposed but also a companys market and nonmarket strategies.

Q: Positioning in political space affects the opportunity to participate effectively in lawmaking and rule-making processes.

Q: The pharmaceutical companies tend to seek visibility rather than covering their activities through an association or other means.

Q: Nonmarket positioning should be a conscious choice rather than dictated by a firms market positioning or by those in its environment.

Q: A synergy is present between market and nonmarket strategies if a nonmarket action increases the return from a market action.

Q: Nonmarket strategies serve the objective of superior performance by developing and sustaining the competitive advantage required to take advantage of market opportunities.

Q: If a firm addresses the nonmarket issue in the legislative stage, the firm has more flexibility and its range of alternatives is wider.

Q: Nonmarket strategy is essential because in its absence competitors in the nonmarket environment will influence the outcome of issues and shape the rules of the game to their advantage.

Q: When a firm chooses a market strategy and a nonmarket strategy, the strategies compete with the strategies of other participants in the market.

Q: Issues such as the environment, sustainability, human rights, privacy, health, and safety seldom attract private politics but are the subject of public politics.

Q: The more intense is private politics, the more important is the nonmarket strategy.

Q: Opportunities can be controlled by actions such as protests, boycotts, and public criticism.

Q: Government exercises relatively little control over pharmaceutical firms and their activities.

Q: Nonmarket strategies are more important when opportunities are controlled by markets.

Q: Opportunities can be controlled by government at one extreme and markets at the other extreme.

Q: A firm that decides to enter a country that has erected trade barriers requires only a simple market strategy.

Q: A firm that decides to enter a country that has open markets relies primarily on a nonmarket strategy.

Q: A business strategy serves as a firms navigational guide in its market and nonmarket environments.

Q: Describe the nonmarket issue life cycle. List and explain the different stages.

Q: Explain the different approaches used by managers to address nonmarket issues.

Q: Explain, with examples, how nonmarket issues originate.

Q: Describe, with examples, the characteristics of a nonmarket environment.

Q: Describe the nonmarket environment. Why has the nonmarket environment grown in importance and complexity over time?

Q: Which of the following is the final stage in the nonmarket issue life cycle? a) interest group formation b) legislation c) administration d) enforcement

Q: Which of the following steps follows the identification of the nonmarket issue in the nonmarket issue life cycle? a) enforcement b) interest group formation c) administration d) legislation

Q: Which of the following is the first stage in the nonmarket issue life cycle? a) interest group formation b) legislation c) issue identification d) administration

Q: Under the new theory of ________, firms could be held liable if their stock prices fell significantly when the firms projections of future earnings had been favorable. a) fraud on the market b) fraud on the nonmarket c) the common factor d) collective deception

Q: ________ involves providing information to officeholders about the likely consequences of policy alternatives. a) Corporate social responsibility b) Channel selection c) Lobbying d) Public relations

Q: Which of the following is an example of a global institution? a) Department of Homeland Security b) Environmental Protection Agency c) Mercosur d) Kyoto Treaty

Q: Which of the following is an example of an institution specific to the United States? a) Congress b) KORUS c) Kyoto Treaty d) News Media

Q: Which of the following is an example of a nongovernmental institution in the nonmarket environment? a) WTO b) the social media c) the judiciary d) the executive branch

Q: ________ can take direct action against firms to force them to change their policies or can appeal to the public for support. a) Special interest groups b) Watchdog groups c) Advocacy groups d) Activist groups

Q: Which of the following characterizes advocacy groups? a) They pursue issues because of the benefits that accrue to their members. b) They monitor the activities of firms and call those activities to the attention of the media, government, and public. c) They represent the interests of individuals, such as those affected by pollution. d) They take direct action against firms to force them to change their policies or can appeal to the public for support.

Q: ________ monitor the activities of firms and call those activities to the attention of the media, government, and public. a) Advocacy groups b) Activist groups c) Special interest groups d) Watchdog groups

Q: Special interest groups ________. a) pursue issues because of the benefits that accrue to their members b) monitor the activities of firms and call those activities to the attention of the media, government, and public c) represent the interests of individuals, such as those affected by pollution d) take direct action against firms to force them to change their policies or can appeal to the public for support

Q: ________ pertains to what the interests and institutional officeholders know or believe about the issues and the forces affecting their development. a) Independence b) Individualism c) Ideas d) Information

Q: Which of the following are government institutions? a) labor unions b) regulatory agencies c) news agencies d) for-profit organizations

Q: ________ is/are defined as the rules of the game in a society that shape human interactions and provide arenas in which interests seek to influence the outcomes on issues. a) Institutions b) Individualism c) Collectivism d) Issue identification

Q: ________ include the individuals and groups with preferences about, or a stake in, the issue. a) Institutions b) Interests c) Innovation d) Information

Q: ________ are the basic unit of analysis and the focus of nonmarket action. a) Interests b) Institutions c) Issues d) Information

Q: The nonmarket environment of a firm is characterized by four Is: issues, interests, institutions, and ________. a) innovation b) information c) ideas d) independence

Q: Which of the following characterizes the competition in a nonmarket environment? a) Firms compete through their market or competitive strategies. b) The competitive strategies are intermediated by markets. c) Public pressure leads to competition involving individuals, activists, interest groups, and firms. d) The nonmarket environment neither changes nor the issues on a firms nonmarket agenda evolve.

Q: Firms typically deal with nonmarket issues in proportion to their potential impacts on ________. a) human resources b) inventory control c) public relations d) performance

Q: Due to its importance for managerial and organizational performance, nonmarket strategy is the responsibility of ________. a) managers b) clerks c) lobbyists d) the board of directors

Q: Which of the following is a nonmarket issue high on firms agendas? a) intellectual property protection b) channel selection c) advertising and promotion d) pricing strategies

Q: Which of the following characterizes the nonmarket component of business environment? a) It includes those interactions between firms, suppliers, and customers that are governed by markets and contracts. b) The interactions of firms typically involve voluntary economic transactions and the exchange of property. c) Activities in the nonmarket environment may be voluntary or involuntary. d) Effective management in the nonmarket environment is not a necessary condition for superior performance.