The Non Market Strategies From A Management Process That Incorporates Knowledge Of The Market And Nonmarket Environments

1698 WordsSep 22, 20157 Pages
Question 1 Baron (1995) states the following: Nonmarket strategies result from a management process that incorporates knowledge of the market and nonmarket environments, information about specific issues, and conceptual frameworks that guide strategy formulation and implementation. Non-market strategies reflects the need for measures other than quantitative. By applying quant models only, important facts are neglected, such as the government, interest groups, flow of information and issues. These factors however play an important role. For example, trade organizations have a great impact on markets, even though they do not steer their activities in the market. They do this through lobbyism. The non-market strategies address the non-quantitative factors of expanding in new markets and form together with quantitative analysis the strategies (Baron, 1995). Globalization stresses the needs for non-market strategies. This mainly due to diversity: For instance, Switzerland has another working culture than Germany, where trade unions are very powerful and can cause whole breakdowns of the economy (e.g. strikes on public transport). A Swiss company which wants to expand to Germany has to be well aware of labor unions and working counsels, guaranteed by law. Question 2 Genzyme, a biotechnology start-up company founded by a handful scientists wants to enter the orphane drug market. At the same time, the US Congress passed the Orphane Drug Act, which gives first developers an

More about The Non Market Strategies From A Management Process That Incorporates Knowledge Of The Market And Nonmarket Environments

Open Document