1. Class 17-19 Class 17-19 Implementing nonmarket strategies St-Petersburg State University Graduate School of Management Master of International Business Program Business-government relations

2. Nonmarket strategy implementation activities Lobbying Electoral support Grassroots and constituency campaigns Coalition building Public advocacy Juridical strategies

3. Lobbying Lobbying includes all attempts to influence legislators and officials, whether by other legislators, constituents or organized groups. Governments often define and regulate organized group lobbying. Lobbying – is the stategic communication of politically relevant information to government officeholders Information can be technical and political

4. Lobbying (cont.) That info may be provided to rge president, a governor, executive branch oficials, etc. Lobying requires access and it can be obtained throug: –Constituency connection –Campaign contribution –Personal relationships –“wining and dining” Information provided should be credible and relevant (expertise)

5. Electoral strategies Electoral support focuses on providing electorally important recourses to candidates. Forms: - endorse candidates - provide volunteer workers - staff get-out-the-vote campaigns - align with political parties - contribute to campaigns - fund political advertising for and against candidates

6. Electoral strategies (cont) Electoral support: - way of influencing which is based on providing votes indirectly - way of getting access to decision-makers  Opportunity to influence program of candidate  Broadening ties

7. Grassroots and constituency campaigns Grassroots campaigns are based on the connection between constituents and their elected representatives. Labor unions, community interest groups, environmental groups engage in grassroots nonmarket activity intended to demonstrate the breadth and intensity of their members’ interests on issues

8. Examples of Grassroots campaigns Soft: conferences, seminars, meetings and discussions, letters and postcards, phone-calls, petitions, e-mails. Tough: protest actions, vigil, demonstrations (ability to attract mass media). Constituent-based grassroots strategies are frequently accompanied by mass advertising, Internet campaigns

9. Coalition building Coalition building is an important component of nonmarket strategies Coalitions are the principal means of forging a majority from a collection of minorities There are 3 types of business coalitions: –Peak associations –Trade associations –Ad hoc coalitions

10. Peak associations Peak, or umbrella organizations include firms from a number of industries an represent range of interests Peak associations emphasize issues that affect more than one industry Ex. Chamber of commerce

11. Trade associations Trade associations serve a variety of market and nonmarket functions. Market functions: Collection of market and industry statistics, Development of technical standards Case research Nonmarket functions: Reducing the cots of nonmarket actions, Monitor potential and current legislative activity, regulatory rule-making activities and administrative actions Ex. The American Resort Development Association

12. Ad hoc coalitions Ad hoc coalition is a group of interests that join together on a specific nonmarket issue Ex. Clean Air Working Group, Uniform Standards Coalition

13. Public advocacy On some issues particularly those characterized by majoritarian politics, firms use public advocacy to communicate directly with the public. Ex: Advertisement (Harry & Louise) Public educational campaigns, Meeting (Bristol Mayers)

14. Judicial strategies Judicial strategies pertain not only to those cases in which the firm finds itself the defendant but also to those in which it initiates legal action as a component of a nonmarket strategy This strategies are also used in regards to regulatory and administrative agencies

15. Judicial strategies (cont) Judicial strategies are used: To enforce rights To obtain damages for breach of contract To address unfair competitive practices under the antitrust laws To open markets