BUSINESS, GOVERNMENT AND SOCIETY PROFESSOR ROSS GITTELL DEPARTMENT OF MANAGEMENT

BG&S: AN INTRODUCTION z(1) I ssues and topics z(2) Course objectives z(3) General framework z(4) Course syllabus z(5) Requirements

RELEVANCE OF BG&S ISSUES TO CORPORATE MANAGEMENT zBG&S -- management in the context of government policy and economic, social, political and technological trends that strongly affect corporate profitability zThe “non-market” issues have increasing importance and influence on corporate management and profitability zThis is true in the international, national, state and local arenas

COURSE OBJECTIVES z(1) Exposure to range of BG&S issues z(2) Guidance on managerial decision making in the context of “larger” government policy and social issues z(3) Introduction to economic and political theories which can inform practice

COURSE METHODOLOGY zClassroom discussion zInstructor presentation zCase studies zGroup projects zIndividual assignments yall intended to have students gain practice and experience in the strategic management of non-market issues

BG&S GENERAL FRAMEWORK zNeed To Integrate The Management Of Market And Non-Market Issues x MARKET x *CORPORATE MANAGER* x NON-MARKET

HIGHLIGHTS OF BG&S FRAMEWORK zDynamic and interactive nature of the non-market and the market zVariety of ways that the non-market affects the market zManagers can affect the non-market to enhance corporate profitability

CRITICAL ELEMENTS OF THE NONMARKET-MARKET NEXUS zPrivate collective action groups zGovernment agencies & public policy zDemographic, technological & social trends zEthics & values zStrategic position of corps in non-market zThe media and the Internet

PRIVATE COLLECTIVE ACTION GROUPS zExamples include -- NRA, AARP, TEAMSTERS, NAM, AMA, ENVIRONMENTAL DEFENSE FUND, PACS yHave strong direct and in-direct influence on the non-market environment and corporate actions yIndirect influence through their affect on : (a) public policies (b) the media

GOVERNMENT AND PUBLIC POLICIES zPublic policy and government officials are strongly influenced by: y market/economic conditions ysocial and demographic trends ytechnological change ycollective action groups ycorporate behavior ythe Internet and media

GOVERNMENT AND PUBLIC POLICIES zInstitutional Arenas (ia’s) decision making “bodies” that influence the non-market yexecutive branch of government (President, Governors, Mayors) ylegislatures ygovernment agencies and departments ycourts ythe media & the Internet

DEMOGRAPHIC,TECHNOLOGICAL & SOCIAL TRENDS zA few of the major trends include: ythe aging of the US population y2-parents working, single-parent & gay families ythe rapid increase in the use of the Internet ythe globalization of industry and society zTrends are affected by: ythe media and marketing yby science and industry through the development of new technologies

CORPORATE ETHICS zStrongly influenced by societal values and collective notions of legitimacy zMost visible in corporate hiring (e.g.,workers of different race/gender/ability), sales practices (e.g., Adam’s Mark Hotel) and advertising zIndividual corporate ethical practices are influenced strongly by the values and actions of senior management and major shareholders

THE MEDIA & THE INTERNET zMany non-market issues are of high interest to public & therefore the media (e.g., FOX network) zStrong influence of media and Internet on critical elements of the non-market (e.g., social trends, govt policy, effectiveness of pvt collective action) zVirtually immediate “Exposure” on non-market issues as they occur (e.g., the safety of SUVs) zStrategic management of non-market issues requires constant attention & rapid response zThe media & Internet are important to monitor and effectively utilize --as “threat” and “tool”

In Class Exercise zDescribe a current non-market issue zIdentify yActors and their stake on the issue yInstitutional arenas zRecommend a non-market Strategy for a particular actor zPredict “outcome”

COURSE SYLLABUS AND REQUIREMENTS * Core topics and course organization * Individual and group projects * Midterm and final exam

Group Assignments zEight groups zWork together on two projects & in- class exercises zAssignment to prepare for Thursday zGroup exercise today

Case Discussion z(1) Describe the Non-Market Issue z(2) Identify xActors (present & prospective future) and their Stake (on the issue) xInstitutional arenas z(3) Recommend a non-market Strategy for a lead actor z(4) Predict outcome, -- response of institutional arena(s)

Case “Assignment zNH School Funding --Group 1 zFOX network --Group 2 zAdam’s Mark Hotel--Group 3 zBoeing Strike -- Groups 4,5 zSUV Safety -- Groups 6,7 zGun Control --Group 8