Free Essay

Market and Nonmarket Issues

In: Business and Management

Submitted By bean011
Words 2841
Pages 12
Market and Non-Market Strategy to deal with Non-Market Issue

By (Student Name :)

Foundation Course-
Tutor:
Institution:

Date:

1. Issue
Greenpeace Company, Indian branch, has for the last one month suffered administrative and political fallout with the Indian authorities over what it calls ‘strangulation by stealth.’ (Bhalla 2015). According to Aulakh (2015), there is a public struggle between the Indian government and Greenpeace, who see it as a “threat” to national development. Further, a report from an intelligence unit from India showed how a campaigner from Australia working for Greenpeace was denied entry into the country sourcing him as a major threat towards the government. Bhalla (2015) further narrates how the organization faced closure due to foreign funding being blocked for a month and registration suspension for six months. In a statement to the newsrooms, the NDA responded to claims of the closure of Greenpeace foreign account. They claimed that the organization was violating the Foreign Contribution Regulation Act (FCRA) and tax laws (Singh 2015). The stated law scrutinizes NGO’S of ‘political nature’ and bars them from obtaining donations from the international partners (Bhalla 2015).
Moreover, in January 2012, the NGO’s senior campaigner Priya Pillai was also stopped from boarding a plane to London. The government cited her as the source of problems it was facing at the time (Business Standard 2015). Needless to note, she was only fighting for the interests of locals in the Mohan region. In her favor, Delhi High Court overruled the government’s decision of blocking her travel to the British parliament. (The times of India 2015).
The genesis of this fallout began several years back. According to a standard’s business reporter Sethi (2015), the NDA (National Democratic Alliance) government intended to issue out a license of clearance to Hindalco Industries and Essar Power in 2006 to mine coal in Mahan. Mahan sits on one of the best sal forests in Madhya Pradesh, it is inhabited by some indigenous groups of people who view the forest as their only natural habitat. The coal block is on the periphery of Mahan Ban Forest while the area covered by coal is 9.8 square kilometer which, in essence, is 1.05% of the forest cover.(Agnihotri 2015) According to the government of Madhya Pradesh, 0.4-0.7 density of Mahan Forest is the one that comprises the Mahan Coal Block.( Agnihotri 2014). It is absurd to note that, was it not for the intervention by Greenpeace, the two companies (Hindalco and Essar) would have chopped down over 500,000 trees over about 1,000 hectares (Sethi 2015). Their activities would imply that the locals who depend on the forest for cattle herding and survival would have to either relocate or, they would perish from the harsh climate changes subsequently. Essar Company formulated a strategy, where they reached out to the prime minister, foreign affairs ministry, and the environment minister Jairam Ramesh. The minister for environment is on record citing, that he was being forced to clear the block as a fait accompli, but he suggested alternative blocks. Greenpeace with an intervention of 11 tribe members known as the Mahan Sangharsh Samiti (MSS) organized protests for their forest. Greenpeace subsequently took the issue up, this gained further support from the larger Indian and International community through its signature high-amp campaign mode (Sethi 2015). Under the forest rights act, the government is not allowed to sidestep the rights of the indigenous groups at whatever cost.
2. Actors and Interests
There are several groups that might be of help in the struggle for the total cancelation of the forest cover in Mahan by Greenpeace. These groups include the local tribes of Mahan region, the Indian Press, the opposition party leaders, the International community (U.K government and the American government). Additionally, the interested local companies and entrepreneurs, activists and Non-Governmental Organizations operating in India and finally the courts care actors to this agenda.
Greenpeace ought’s to try and maintain a continued relationship with the MSS as a measure to ensure their support. In any public struggle, there is the need to have those who will stand by you at all cost. The local tribes of Mahan region should continue registering their unending support for the liberalization of their natural habitat from the jaws of Essar and other greedy organizations. The only way that they may be able to achieve total freedom from economic slavery from the NDA (National Democratic Alliance) is by joining hands with Greenpeace.
Luckily enough, the national press is aware of the kind of hegemony the government is trying to thwart at the very progressive Non-governmental organization through the foreign contribution act. According to an editorial by Aulakh (2015), Mr Madhuresh Kumar of the National Alliance of People’s Movement cited that cracking down on Greenpeace will utterly send a message to all the other NGOs that they too can be gagged. They stem their authority using unscrupulous mechanisms that the media clearly understands. The issues might work in favor of Greenpeace, if they cite such questions to lobby for support from the Indian and the international community media.
From the statements made by Madhuresh Kumar and other government officials, Greenpeace may use them to unmask the weaknesses at the National government. They can also use the opposition leaders and pave the way for their support so that the rights of citizens in forest areas are protected. Sethi (2013) lets it out that UPA government undermined the rights of citizens in Mahan when it cleared the license to Essar for Rs-6500 Mohan block. Such issues may help in driving the debate forward.
Greenpeace is an international organization that is involved with charity activities, and has bases in every part of the world. In the event that it desires support for its course, it may seek help from the United States administration, which has clear-cut environmental protection policies. Moreover, the international community has interests in India, and hence, they would always be willing to assist.
The local companies that were interested in mining coal and never got an opportunity to do so can help check the most conducive ways of merging with Greenpeace. The combination of forces and resources in this case will foster their collaboration towards ensuring a greener and safer India. Arguably, the best platform for Greenpeace to maneuver such development terrain is through the assistance of other non-governmental organizations and the courts. Some reprobate directives like the closure of foreign funding done by Prime Minister Modi’s government have forced the courts to reverse them. The courts act as the best guards of safety when all corners of justice have failed to regroup into action.
3. Arena.
The press will make it possible for the just people of MSS (Mahan Sangharsh Samiti) to gain a voice to echo their rights at every corner of the nation and the world. For example, the Times of India collaborates with various MSS group to help shape their solidarity and just course of their forest. They state they will continue to fight for their rights over the forests (The Indian Times 2015).
The National Democratic Alliance seems to enjoy full authority over Non-governmental Organizations. They do this by thwarting dictatorial laws and measures that restrict their staff’s movement and operations. On the other hand, the Congress suffers for the wrongs which still operate in the current regime. For example, former Prime Minister Manmohan Singh was taken to court over what they call the ‘coal scam’ (Singh, March 2015). He was summoned at a time when several coal mines were under auction whereby Hondalic had earned three mines already ( Sheriff 2015).Greenpeace can use this platform by ensuring political members allied to Congress party be lured into supporting their leader at the provocation of the National Democratic Alliance. In addition to this, some parts of the opposition can be used to reduce the laws that limit operations of international Non-governmental organizations in India at the benefit of this green revolution.
On the other hand, the courts could be an arsenal for refuting some of the most problematic issues from the regime. The laws like the Foreign Contribution Act and the travel bans given to members of Greenpeace are better handled in court under the Indian constitution. The courts have a reputation of credibility and justice and thus can assist in helping the course.
4. Information and Assets.
The press and other actors know that the coalmines could generate billions of rupees that can be used to push the economy for ages. They also know that the government is advocating for the clearance of the Mahan blocks so as to favor the international arms struggle in the line of nuclear weapons. For instance, at a rally organized by the Greenpeace, International activists Jayaram Nityanad, noted that, the government is pushing for nuclear weapons tests at the expense of an already failing Indian economy. The only way the government is going to raise funds that can sustain such huge expensive nuclear projects, is by indicating interests in coal mining in Mahan and other minefields. They also know that coalmines generate about Rs 2 lakh crore from 33 minefields. (Shankar 2015).These monies are good manufacturing grounds for nuclear weapons and not development.
5. Bargaining Context.
Judging from the situation on the ground the best allies to Greenpeace are the local community members from the MSS group. They form the Greenpeace’s stronghold support region with their undying support for the organization. In addition, the local authority of Madhya Pradesh could help push for support for this green revolution.
Further, the opposition team could help gather evidence to push for the course of recognizing the rights of the members of Mahan community. They will help push for standing orders and policies in parliament which will greatly enhance the purpose of Greenpeace.
On the other hand, the courts could assist in strengthening the unnecessary abuse of office by the government officials at the expense of Non-governmental organizations in the region. Judging by what they have done to Priya (Business Standard 2015) and what is currently happening to former Prime Minister (Manmahan Singh) it is for sure that the rule of law will help Greenpeace in pursuing its course.
Further, the Obama administration could limit the Indian government by putting trade barriers and sanctions, which could spur in support from all corners of the state. Travel advisories could be used to toughen the situation, which will further help in reducing the pressure on Non-governmental organizations working in India like Greenpeace.
6. The range of Outcomes.
If Greenpeace fails to take action to improve their bargaining position, then the National Democratic government will win the struggle. One of its biggest failures will be on the rights of the people of MSS over the forests. They have struggled for a long time to ensure that, their forests are protected from the government so that it would be their loss. They will not be able to keep Mahan’s heritage and their cattle would not find a land to graze. In addition, since Greenpeace was used as a teaching tool to other NGO’s that had the tag of ‘national threat,’ it would be easy for the government to continue practicing their anarchy over other NGOs. Further, the international relations between Indian foreign authority and the American government would be eroded to the extent that, foreign sanctions be administered to the Indian population.
7. Strategy. TO GREENPEACE C.E.O Market Strategy | Nonmarket strategy | 1.Through Partnering with other NGOs and operational effectiveness | 1. Peaceful Demonstrations | 2.Corporate marketing | . 2.Press –interviews, conferences, meetings, etc | 3. Reaching out to other companies seeking to mine coal and the international community. | 3. Public rallies and tree planting activities in wetland areas. | According to the financial times (2015), a nonmarket strategy is one that enables groups to gain a softer power to influence pronouncements for a competitive gain. While market strategy is how a company interacts with its clientele, suppliers, competitors and the labour market (Dann 2009). Bach & Allen (2010) state that in any market economy, the only way of attaining a competitive edge is to handle the environmental and political sphere of the business and not just the revenue part. Since its programs are curtailed to ensure safer environment and sustainability, Greenpeace has the task of using all systems to maintain environmental order in India.
In its effort to attain a greener environment, Greenpeace should continue to seek out to Mahan community for collaboration so that they can gain a strong backing that will help them push for their vision. Corporate marketing strategy is the other way this green revolutionary organization is going to figure out success. The marketing strategy should not only be limited to the Mahan group, but also to the opposition party leaders. Moreover, they should make a partnership with other Non-governmental organizations that fight the same front. The international community through World Health Organization and the American government should come in to the aid of Greenpeace because they three share the same vision.
From a nonmarket perspective, the NGO needs to make its presence felt across the region. They can do this through continued public rallies, press conferences, and interviews and where necessary, peaceful demonstrations. They should strategize to start tree planting campaigns across Mahan region. These efforts will help in their fight towards driving out interested entities from venturing into coal mining and deforestation.

References
Agnihotri, A 2014, ‘Mahan Coal Limited: About Mahan coal Block.’ Available from http://www.mahancoal.com/operations-mahan-coal.aspx [Accessed: 22nd June 2015]
Aulakh, R 2015, ‘India takes on Greenpeace, could turn on other NGO,’ The Star 13th June. Available from: http://www.thestar.com/news/world/2015/06/13/india-takes-on- greenpeace-could-turn-on-other-ngos.html [Accessed: 21 June 2015]
Bach, D & Bruce, DA 2010, ‘What every CEO needs to know about a nonmarket strategy,’ Mit.edu 1 April. Available from: http://sloanreview.mit.edu/article/what-every-ceo- needs-to-know-about-nonmarket-strategy/ [Accessed: 21 June 2015]
Bhalla, N 2015, ‘Greenpeace faces shutdown after India freezes funds in charity crackdown,’ Reuters 6th May. Available from: http://in.reuters.com/article/2015/05/06/india-charities- greenpeace-idINKBN0NQ25F20150506 [Accessed: 21 June 2015]
Dann, J 2009, ‘Why business need a nonmarket strategy,’ CBS 8 July. Available from:http://www.cbsnews.com/news/why-businesses-need-non-market-strategies/ [Accessed: 22 June 2015]
Financial Times, 2015, ‘Nonmarket strategy,’ Lexicon. Available from: http://lexicon.ft.com/Term?term=non_market-strategy [Accessed on: 21 June 2015] Business Standard, 2015, ‘Greenpeace activist Priya Pilai offloaded from Delhi-London flight, says it’s a ‘bullying tactic’ by govt. Jan 12th Available from: http://www.business- standard.com/video-gallery/general/greenpeace-activist-priya-pillai-offloaded-from- delhi-london-flight-says-it-s-a-bullying-tactic-by-govt-16011.htm [Accessed: 21 June 2015]
Sethi, N 2013, ‘Tribal interests, norms ignored for Mahan coal block, The Hindu. 21 September. Available from: http://www.thehindu.com/news/national/tribal-interests-norms- ignored-for-mahan-coal-block/article5151075.ece [Accessed: 22 June 2015]
Sethi, N 2015, ‘NDA government’s grouse with Greenpeace: Mahan coal block protests,’ The Business Standard 20 Feb. 20th.Available from: http://www.business- standard.com/article/economy-policy/nda-govt-s-grouse-with-greenpeace-mahan-coal- block-protests-115022000023_1.html [Accessed: 21 June 2015]
Singh, N 2015, ‘Government Freezes Greenpeace’s India Accounts: Environmental Foundation May shut down,’ International Business Times, 6 May .Available from http://www.ibtimes.co.in/government-freezes-greenpeaces-india-accounts- environmental-foundation-may-shut-down-631468 [Accessed: 22 June 2015]
Singh, S 2015, ‘Coal Scam: Sonia. Congress’ solidarity march for Manmohan Singh is Ironic. First Post, 13 March. Available from http://www.firstpost.com/politics/coal-scam-sonia- congress-solidarity-march-for-manmohan-singh-is-ironic-2150469.html [Accessed: 21 June 2015]
Shankar, R P 2015, ‘The economic Times: Politics and Nation. India times,’ Available from :http://articles.economictimes.indiatimes.com/2015-03-12/news/60047967_1_coal- blocks-e-auction-proceeds-33-coal-mines [Accessed: 21 June 2015]
Sheriff, K 2015, ‘Accused No. 6 Manmohan Singh: Court summons former PM over Hindalco coal block,’ The Indian Express 12 March. Available from: http://indianexpress.com/article/india/india-others/coal-block-case-manmohan-singh-ex- coal-secy-parakh-hindalco-officials-summoned-as-accused/ [Accessed: 22 June 2015]
Google books, 1998, ‘The bulletin of the atomic scientists,’ July. Available from https://books.google.co.ke/books?id=vAsAAAAAMBAJ&pg=PA33&dq=greenpeace+in dia+political+fallout&hl=en&sa=X&ei=- E6GVfeZCeSc7gbfqIPICw&redir_esc=y#v=onepage&q=greenpeace%20india%20politic al%20fallout&f=false [Accessed: 21 June 2015]
The Times of India, 2015, ‘Mahan coal block won’t be auctioned, coal minister says in RTI reply,’ 21 March. Available from: http://timesofindia.indiatimes.com/city/bhopal/Mahan- coal-block-wont-be-auctioned-coal-min-says-in-RTI-reply/articleshow/46642702.cms [Accessed: 21st June 2015]

Similar Documents

Premium Essay

Market and Nonmarket Environments Any Issues or Changes That Happen in One of These Environments Can Directly Cause Change to the Other. Since Both of These Are so Closely Related and to a Great Importance for a Firm

...Management Market and Nonmarket Environments Any Issues or Changes That Happen in One of These Environments Can Directly Cause Change to the Other. Since Both of These Are so Closely Related and to a Great Importance for a Firm In: Business and Management Market and Nonmarket Environments Any Issues or Changes That Happen in One of These Environments Can Directly Cause Change to the Other. Since Both of These Are so Closely Related and to a Great Importance for a Firm Canadian Business Environment Market and Nonmarket Environments Any issues or changes that happen in one of these environments can directly cause change to the other. Since both of these are so closely related and to a great importance for a firm to run successfully, they have put more focus on managing both aspects of the company. The interrelationship between the market and nonmarket environment is heavily based on the role of management. Since a firm will operate in both the market and nonmarket environments, managers are there to measure the impact one has on the other. The issues found in the nonmarket environment are directly related to the market environment of the firm. The nonmarket environment is a little more difficult to control than the market environment, but each firm is aware of the importance of running sufficiently in both aspects in order to be successful. As shown in figure 1-1 (Baron p. 3), the relationship that the nonmarket and market environment has. Market......

Words: 620 - Pages: 3

Premium Essay

Market and Nonmarket Environments Any Issues or Changes That Happen in One of These Environments Can Directly Cause Change to the Other. Since Both of These Are so Closely Related and to a Great Importance for a Firm

...Canadian Business Environment Market and Nonmarket Environments Any issues or changes that happen in one of these environments can directly cause change to the other. Since both of these are so closely related and to a great importance for a firm to run successfully, they have put more focus on managing both aspects of the company. The interrelationship between the market and nonmarket environment is heavily based on the role of management. Since a firm will operate in both the market and nonmarket environments, managers are there to measure the impact one has on the other. The issues found in the nonmarket environment are directly related to the market environment of the firm. The nonmarket environment is a little more difficult to control than the market environment, but each firm is aware of the importance of running sufficiently in both aspects in order to be successful. As shown in figure 1-1 (Baron p. 3), the relationship that the nonmarket and market environment has. Market environment determines the significance of nonmarket issues to the firm. Nonmarket environment shapes business opportunities in the market place. Analysis of the Nonmarket Environment When analyzing the nonmarket environment of an organization the main focus is the four I’s that characterize the organization. The four I’s consists of Issues, Interests, Institutions and Information. The issues aspect is the main part of the nonmarket analysis, issues of a firm can be very vast, and......

Words: 3125 - Pages: 13

Free Essay

Markets and Non Markets

...Market and Nonmarket Environments Market environment includes those interactions (which involve voluntary economic transactions and the exchange of property) between firms, suppliers and customers that are governed by Markets and Contracts. Nonmarket environment is composed of the social, political and legal arrangements that structure interactions (between the firm and individuals, interest groups, govt. entities, and the public which are intermediated not by markets but by public and private institutions) outside of, but in conjunction with, markets and contracts. Public institutions differ from markets because of characteristics such as majority rule, due process, broad enfranchisement, collective action, and publicness. Activities in the non market environment are Voluntary when, firm cooperates with govt. officials or an environment group and are Involuntary in the case of, govt. regulation or a boycott of a firm’s product led by an activist group. Nonmarket issues high on firms agenda include : 1. Environmental Protection 2. Health & Safety 3. Regulation & Deregulation, 4. Intellectual Property Protection 5. Human Rights 6. International Trade Policy 7. Regulation & Anti-trust 8. Activist Pressures 9. Media Coverage of Business 10. Corporate Social Responsibility & 11. Ethics Management & Managers is both responsible for formulating and implementing nonmarket as well as market strategies. Market......

Words: 1536 - Pages: 7

Free Essay

Personal Watercraft Case

...of an integrated market and nonmarket strategy, introduce the concept of positioning, and provide a framework for the analysis of nonmarket issues and the formulation of nonmarket strategies. The chapter also reinforces the point made in Chapter 1 that managers are responsible for the formulation and implementation of nonmarket strategies. This chapter extends that perspective by focusing on the integration of those strategies with market strategies, as illustrated in Figure 2-1. One natural focal point for this integration is the relationship between market opportunities and the importance of nonmarket strategies, as illustrated in Figure 2-2. The principal factor restricting the pursuit of market opportunities is government policies. Two other factors are public sentiment and ethics. The section on positioning provides a foundation for nonmarket strategy, but as importantly it affects the set of issues the firm faces. Some of those issues are identified by government and others by the news media, and some are initiated by activists. Figure 2-5 provides a framework for addressing nonmarket issues. At this point the framework should be primarily used to identify the different stages. The stages are intended both to correspond to managerial decision-making processes and to distinguish between analysis, or thinking ahead, and deciding. The latter involves choosing a strategy to deal with an issue or a developing policy to guide managers in dealing with issues. It is......

Words: 621 - Pages: 3

Premium Essay

Non-Market Environment

...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
h...

Words: 264 - Pages: 2

Premium Essay

Non Market Environment of Mcdonald’s Case Study

...Non Market Environment of McDonald’s Case Study Columbia Southern University Abstract This case study explores the nonmarket component of McDonald’s. The issues, interest, institution and information of the nonmarket is identified. This case study revolves around the most frequently addressed issues against McDonald’s which include contribution the poor public health, treatment of livestock, and aggressive marketing practices. The timeframe of each issues ranges from the 1990s to 2000s. Many of these issues have been continuous through McDonald’s history but none like the allegations of contributing to poor public health. McDonald’s has approached these issues by adjusting ingredients, posting nutritional facts, and adding healthier offerings to their menu. To become a more socially responsible organization McDonald’s should identify and address future issues before they arise As a successful global organization McDonald’s faces much scrutiny. The most prominent issue facing McDonald’s is their contribution to obesity and poor health in society. This organization has also been accused of aggressive marketing towards children. This practice has been directly linked to the obesity in children (Baertlein, 2012). Other interest groups have addressed their treatment of their livestock and the fillers and contaminants found in the food. Various groups have targeted McDonalds backing the aforementioned issues. PETA is the most prominent group with official capacity that......

Words: 815 - Pages: 4

Premium Essay

Issue in Business

...BB315 – Issues in Business Tutorial Questions Chapter 17 – Emerging Markets PART A – True or False Questions 1. The study of the nonmarket environment of an emerging market country involves assessment of labor market, demand and supply relations, and investigation of the competitiveness of incumbent companies. (True or False) 2. Transparency International’s Corruption Perceptions Index (CPI) pertains to the corruption in a country or the demand side of corruption. (True or False) 3. To use a country to export goods to better developed countries and markets requires foreign markets to be closed, which if generally the case in developing countries. (True or False) 4. Culture can be important, not only shaping the opportunities and risks in a country but also for the likelihood that a company can implement its market strategy. (True or False) 5. Microfinance, in its modern version, was introduced by Muhammad Yunus, a Bangladeshi economist. (True or False) 6. The fair trade system attempts to intervene directly on both market and nonmarket issues by coordinating the flow of consumer revenue to participating producers. (True or False) 7. Rule of law can override politics and political ties when doing business in emerging market countries. (True or False) 8. Emerging markets countries have imposed a variety of restrictions on foreign direct investment, foreign exchange transactions, and the repatriation of earnings. ......

Words: 692 - Pages: 3

Free Essay

Personal Watercraft Case Study

...Issues, Interests, Institutions and Information Issues According to the case study there multiple and a wide variety of issues involved regarding Personal Watercraft (PWC). One of the issues was the potential for water contamination from the oily residue left in the water by two-stroke engines. In addition to the potential for water pollution, air pollution from emissions was also a concern. There was also another type of pollution that was being raised as an issue, “Noise Pollution”. Homeowners and other groups complained that the noise from PWC degraded the quality of the “natural experience” and was a potential distraction to wildlife. PWC safety was another area of major concern; published studies indicated that the accident rate for Jet Skis was significantly higher than regular motorboats. Interests There were many opposing interests identified in the case study. PWC manufacturers, such as Bombardier, Polaris, Kawasaki, and Yamaha, as well as, PWC buyers and/or potential buyers all had a vested interest in the outcome of the issues and conflicts. Associations such as the Personal Watercraft Industry Association (PWIA) which represented the Manufacturers, and various other associations which represented buyers and users were also key stakeholders. The interests on the other side of the equation, who maintained a contrasting position to the PWC manufacturers and owners, were a multitude of conservation and environmental organizations. The......

Words: 1672 - Pages: 7

Free Essay

Brawl in Mickeys Bacy Yard

...company in this debate is SunCal, while Disney is considered a company, they are looked at as a stakeholder because stakeholder refers to a person or group that is affected by an organization’s decision or operations (Lawrence & Weber 2011), while at the current time (with no housing being built yet) Disney is merely a nonmarket stakeholders. This of course could change if housing is built and Disney and Suncal, now operating inside of the resort area, are conducting business with each other. Do to the fact that no houses were built all parties involved are considered nonmarket stakeholders to SunCal. These nonmarket stakeholders are Disney employees who stand to gain from the subsidized lower income housing. The city of Anaheim, who’s choice to change the zoning of the resort area to allow for personal family dwellings or can choose to deny the request. As well as other companies in the resort area who would lose building space as a result of the housing development. All of these current nonmarket stakeholders could change to market stakeholders if this housing track is built. A market stakeholder differs from a nonmarket stakeholder in that the market stakeholder is not just affected by the company’s actions, but are engaged in economic trade with a company (Lawrence & Weber 2011). I think that it should be pointed out that Disney was not...

Words: 764 - Pages: 4

Premium Essay

A Brawl in Mickey's Back Yard

...A Brawl in Mickey’s Backyard Donna Ralston BUS 250 Corporate and Social Responsibility Instructor: Amy Goffinet September 29, 2014 In the study case of “A Brawl in Mickey’s Backyard” there were issues between a development company called SunCal and the world famous Disney Land Resort. SunCal wanted to develop affordable housing so that the employees of Disneyland could be closer to work and not have to pay an outrageous amount of money for housing close by which Disneyland opposed. When billion dollar companies have employees that make low income, should the companies be helpful to ensure that their employees have affordable housing close to their place of employment? In this paper I will discuss this as well as determine who the relevant market and nonmarket stakeholders are in this situation? I will also state what possible solutions to this dispute I think might emerge from dialogue between SunCal and its stakeholders? This case study was quiet interesting to me. Disneyland makes billions of dollars a year due to their employee’s hard work and determination. According to our text; “Walt Disney, the company’s founder, had famously spelled out the resort’s vision when he said “I don’t want the public to see the world they live in while they’re in Disneyland. I want them to feel they’re in another world.” (Lawrence, A. T. & Weber, J. 2011) Because of this so called “vision” Walt Disney had, affordable housing could not be built close by the resort by SunCal. Of......

Words: 708 - Pages: 3

Premium Essay

Business and Society Chapter One

...Chapter 1 1.) What is the focal organization in this case, and what is the main issue it faces? The focal organizations in this case is Disney because it is in their perspective that the analysis is being conducted. The main issue that this focal organization faces is whether or not to let this local developer called SunCal’s development, which has arranged to buy a 26-acre site in the resort district to build 1,500 condominiums which fifteen percent of them will be for the below-market rate rental apartments. 2.) Who are the relevant market and nonmarket stakeholders in this situation? The relative market stakeholder in this situation is the local developer SunCal’s because they want to engage in economic transactions with Disney to provide low-market rent apartments for lower income families. The nonmarket stakeholders which are the affordable housing advocates, unions representing Disney employees and other individuals and groups. 3.) What are the various stakeholder’s interests? Please indicate if each stakeholder in favor of, or opposed to, SunCal’s proposed development. The market stakeholders interests are drawn by the prospect of reducing long commutes and that these homes would enable many families and communities to live closer to their work place and therefore reduce not only congestion on highways but also less air pollution. The non-market stakeholders which opposed Suncal’s plan argued that the land should be used only for tourism –related development......

Words: 396 - Pages: 2

Free Essay

Case of Gm (Non-Market Environment)

...Question 1: Identify and explain the 4l’s based on the case. a. Issues The dispute over the safety of the pickup trucks, vehicle safety and defective design Firstly, the root cause is that the GM company has a unreasonable design of their gas tank on the collisions GM C/K pickups, the report shows that this pickups’ gas tank was too close with the bumper, it only 25 centimeters long. This is dangerous because that will cause explosions if there is any strike. A safety design should be place the gas tank on the top of axle or add on a shield between the gas tank and bumper. Further, the report also shows that the gas tank design was used for trucks manufactured between 1979 and 1987, and the fact is GM knows about their design problem but take no measure to fix or recall their cars because that will cause more cost. At the Moseley case happens, there are at least 130 other lawsuits involving the design of the gas tank GM need to faced. So the major issue of this case in this point is that whether the gas tank design and placement were defective and because that explosion case after their pickup was struck on the side by another vehicle. And those assumptions were proved by the GM engineer who is testified that GM company hidden the knowledge of this dangerous safety defect, but GM try to block his testimony because they had known for years and refused correct it for fear of alerting the public. Moreover, the provided videotapes of GM’s own crash tests between 1981 and 1983...

Words: 1582 - Pages: 7

Premium Essay

Non Market Stategy

...Littlefield 330 Tel: (650) 723 9040 lion_chris@gsb.stanford.edu POLECON 230 - NONMARKET STRATEGY This course addresses managerial issues in the social, political and legal environments of business. Cases and readings emphasize strategies to improve the performance of companies in light of their multiple constituencies, in both international and US environments. Topics include integrated strategy, activists and the media, legislation affecting business, lobbying, regulation and antitrust, intellectual property, international trade policy, and business ethics. Most core courses focus on firms’ interactions with customers, suppliers, and alliance partners in the form of mutually beneficial exchange transacted in markets. In contrast, this course considers the strategic interactions of firms with comparably important constituents, organizations, and institutions outside of markets. Issues considered include those involving activist and interest groups, the media, legislatures, regulatory and antitrust agencies, and international organizations such as the WTO. Markets and the business environment are increasingly interrelated: issues such as boycotts, legislation, regulation, judicial decisions, and trade policy directly affect firms’ market performance. Conversely, the profit-maximizing activities of firms often give rise to issues that involve governments and the public. For example, the market strategies of some ecommerce firms have sparked debates ranging from intellectual...

Words: 5029 - Pages: 21

Premium Essay

Chapter 1

...Virtual Class ~ PutraLMS http://lms.upm.edu.my/ • Notes • Announcement • Assignment 1-3 1-3 Chapter 1 The Corporation and Its Stakeholders McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Ch. 1: Key Learning Objectives  Understanding the relationship between business and society  Considering the purpose of the modern corporation  Knowing what is a stakeholder and who a corporation’s market and nonmarket and internal and external stakeholders are  Conducting a stakeholder analysis, and understanding the basis of stakeholder interests and power  Recognizing the diverse ways in which modern corporations organize internally to interact with various stakeholders  Analyzing the forces of change that continually reshape the business and society relationship 1-5 Introduction – The Business and Society Relationship  Business: Any organization that is engaged in making a product or providing a service for a profit  Society: Human beings and the social structures they collectively create  1-6 Figure 1.1 Business and Society: An Interactive System 1-7 Introduction – The Business and Society Relationship  We borrow “General Systems Theory (GST)” from biology to explain this relationship; first introduced in 1940s  Theory posits that organisms cannot be understood in isolation, even though they have clear boundaries; they can only be understood in relationship to......

Words: 1025 - Pages: 5

Premium Essay

Disney and Sancal

...1. What is the issue in this case? An Anaheim, CA developer called SunCal purchased 26 acres in 2005 in the resort district surrounding Disneyland and wished to build condos and apartments (low cost housing). Affordable housing advocates, employees of Disneyland, individuals and groups supported the venture. Disneyland and other business groups in the resort district opposed the development initiatives. The city council was split on the venture. 2. Who are the relevant market and nonmarket stakeholders in this situation? Market stakeholders are those that engage in economic transactions with the company as it carries out its primary purpose of providing society with goods and services. In this case I consider SunCal as the “Business Firm”. The market stakeholders are the stockholders, customers and suppliers. Nonmarket stakeholders are people and groups who are affected by or can affect a firm’s actions even though they are not engaged in direct economic exchange with the firm. In this case the nonmarket stakeholders are the city council, community comprising individuals, groups (business and non-business) and other businesses such as Disney. 3. What are the various stakeholders’ interests? Please indicate if each stakeholder is in favor of, or opposed to, SunCal’s proposed development. Employees of Disneyland who will be the primary customers of SunCal favor the development as it provides them with low cost housing options with shorter commutes. Stockholders are for......

Words: 411 - Pages: 2