Markets and Nonmarket Environments
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 Environment determines significance of nonmarket issues to the firm.
Nonmarket Environment shapes opportunities in the marketplace.
Market Environment
Nonmarket Environment
a) Competitive a. Competitive
b) Performance is determined by competition among firms as directed by their market or competitive strategies. b. Legislation, regulation, administrative decisions, and public pressure are the result of competition involving individuals, activist and
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 Environment determines significance of nonmarket issues to the firm.
Nonmarket Environment shapes opportunities in the marketplace.
Market Environment
Nonmarket Environment
a) Competitive a. Competitive
b) Performance is determined by competition among firms as directed by their market or competitive strategies. b. Legislation, regulation, administrative decisions, and public pressure are the result of competition involving individuals, activist and