This dissertation analyses non-market strategy concept and role of non-market strategies. Non- market forces include; activists, government, the public, and interest groups. These forces are outside markets but collaborate with the markets for their functionality. The non-market environmental structure consists of political, legal, and social factors. These factors structure interactions with the public. As a result, determine the performance levels of organizations. Additionally, they work hand in hand with business strategy in achieving success. A business strategy gives a clear direction for navigation of market and non-market environments. This paper also investigates the social factors affecting business. The formulation of strategies by managers to deal with non-market forces is crucial.
non-market strategy and the role of non-market strategies
THE ROLE OF NON-MARKET STRATEGIES IN ESTABLISHING LEGITIMACY
Evaluation of non-market strategy concept is essential for determining their position in the market. The drivers of non-market strategy include Corporate social responsibility and corporate political strategy. The corporate political strategy ensures success in political markets hence facilitating healthy competition. Moreover, it addresses issues such as corruption and lobbying in formal organizations. On the other hand, CSR focusses on improving company image on the public hence increasing public support. The role of non-market strategies in establishing legitimacy includes the following. Firstly, the regulation of individual action by adhering to institutional strategic power structures. Moreover, they facilitate control of firm behavior. The firms will, therefore, work towards adhering to social, legal, and political regulations.
non-market strategies in establishing legitimacy
THE SOCIAL FACTORS AFFECTING BUSINESS
The non-market strategy concept involves social forces as an element. The social forces significantly comprise of the actions of members of the society towards a business. The society has different expectations from the running of a company in their area. These expectations include environmental sustainability and maintenance of good morals within society. There exist various social factors affecting business, including the following. Firstly, the rejection of internet commerce due to outdated technology and lack of technical literacy in some areas. Secondly, inappropriate advertisement strategies in some locations. For example, using television advertisements in regions without electricity is ineffective. Thirdly, changing consumer buying habits affect the sale levels of businesses. Moreover, addressing the varying value and quality perceptions among individuals in society is challenging.
the social factors affecting business
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