Non-Market Environment

In: Business and Management

Submitted By lbrito
Words 264
Pages 2
Nonmarket
Strategy

Lidia
Brito
 


 What
does
the
nonmarket
environment
of
business
consist
of?


To
 understand
 the
 difference
 between
 business’s
 market
 and
 nonmarket
 environment
 is
 important
to
define
a
coherent
strategy
for
both
setting.
Basically,
those
differences
are
that
 nonmarket
strategies
are
based
on
information
and
values,
instead
of
the
monetary
value
of
 goods
that
are
considered
when
thinking
about
the
market.
 
 Businesses
 are
 more
 than
 economics
 agent,
 because
 businesses
 somehow
 represent
 political
and
social
interests,
which
are
linked
with
the
government
system,
the
society
and
 politics.
 So,
 that’s
 why
 managing
 certain
 problems
 and
 individuals
 is
 imperative
 to
 reduce
 the
risk
of
being
hemmed
in
by
external
factors,
and
to
create
business
opportunities.
Even
 when
those
issues
seem
to
not
add
value
 
 In
order
to
have
more
success
it’s
recommended
to
involve
others
to
become
stronger
as
a
 cooperative
 matter
 if
 the
 businesses’
 environment
 is
 shared,
 although
 a
 party
 is
 not
 connected
directly
with
the
issue.
 
 Nonmarket
 strategy
 is
 specially
 needed
 when
 companies
 have
 a
 global
 approach
 because
 four
mainly
reasons:
 1. They
have
to
manage
simultaneously
and
fit
different
social
and
political
panoramas
 2. Nongovernmental
organizations
are
becoming
global
as
well
as
commerce
 3. Governments
are
more
aware
of
being
able
to
adapt
regulations
so
that
they
get
more
 control
 4. Nonmarket
strategy
helps
to
get
a
better
position
in‐between
competitive
markets,
and
 beyond
them.
 
 
Nonmarket
strategy
structure

Actors

• Interested
 parties


• Con%lict
that
set
 the
nonmarket
 enviromnent
 structure


• Motivator


Arena

• Where
the
 nonmarket
 environmet
 takes
place


• What
kind
of
 information
 moves
the
 controversy


Assets

• Ex.
Knowledge,
 reputation,…...

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