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PEST framework -ANSWERS-Non-market strategy -> firm and market strategy ->
Integrated corporate social strategy
Do customers care about about the brand of Oil and Gas? -ANSWERS-No, gas is a
commodity
Do employees care about the reputation of who they work for? -ANSWERS-Employees
want to work for the industry leader, not the industry laggard
Do investors care about the social reputation of who they invest in? -ANSWERS-
Socially-responsible investors care; they want high returns with no guilt
Industry leaders influence: -ANSWERS-if new policy is written and shape how it is
written
Beyond Petroleum resulted in: -ANSWERS-heightened public expectations, especially
from non-governmental organization (NGO-activists)
BP created "shared value" by -ANSWERS-integrating societal concerns over fossil fuels
with their core market strategy
Integrating societal concerns can -ANSWERS-maximize profits
, Lobbying/rent seeking -ANSWERS-devoting resources to influence public policy
formation in order to bring more income to your interests
BP made two strategic acquisitions: -ANSWERS-ARCO (oil and gas) and SOLAREX
(solar energy)
Competition in the marketplace tends to school managers to think in terms of -
ANSWERS-outcomes (profits, sales, market share)
In interactions with non-market players, -ANSWERS-processes gain in relative
importance (oversight, quality assurance, social reputation)
Corporate Social Strategy -ANSWERS-Integrate non-market forces (Political,
Economic, Social, and Technological) and societal concerns into your market strategy.
Function of lobbyists -ANSWERS-find political opportunities and threats, inform
politicians and influence public opinion, form coalitions: identify groups with 'similar'
interests
Special interest effect -ANSWERS-small group of people, with incentive to take political
action, receive benefits at the expense of a large unorganized group of people
Majoritarian politics -ANSWERS-Widely dispersed costs and widely dispersed benefits;
no special interest groups take action on either side of the issue; lobbying does not
occur
Client politics -ANSWERS-Widely dispersed costs and concentrated benefits; one
special interest group is active in favor of an issue; lobbying will likely be successful
Entrepreneurial politics -ANSWERS-Concentrated costs and widely dispersed benefits;
one special interest group is active against an issue