competition in the marketplace tends to school man
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Kreft G202
Kreft G202
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Kreft G202 Assessment 1 Test Answered
Correctly!12024
BP made two strategic acquisitions: CORRECT ANSWERS ARCO (oil and gas) and
SOLAREX (solar energy)
Competition in the marketplace tends to school managers to think in terms of
CORRECT ANSWERS outcomes (profits, sales, market share)
In interactions with non-market players, CORRECT ANSWERS processes gain in
relative importance (oversight, quality assurance, social reputation)
Corporate Social Strategy CORRECT ANSWERS Integrate non-market forces (Political,
Economic, Social, and Technological) and societal concerns into your market strategy.
PEST framework CORRECT ANSWERS Non-market strategy -> firm and market
strategy -> Integrated corporate social strategy
Do customers care about about the brand of Oil and Gas? CORRECT ANSWERS No,
gas is a commodity
Do employees care about the reputation of who they work for? CORRECT ANSWERS
Employees want to work for the industry leader, not the industry laggard
Do investors care about the social reputation of who they invest in? CORRECT
ANSWERS Socially-responsible investors care; they want high returns with no guilt
Industry leaders influence: CORRECT ANSWERS if new policy is written and shape
how it is written
Beyond Petroleum resulted in: CORRECT ANSWERS heightened public expectations,
especially from non-governmental organization (NGO-activists)
BP created "shared value" by CORRECT ANSWERS integrating societal concerns over
fossil fuels with their core market strategy
Integrating societal concerns can CORRECT ANSWERS maximize profits
Lobbying/rent seeking CORRECT ANSWERS devoting resources to influence public
policy formation in order to bring more income to your interests
Function of lobbyists CORRECT ANSWERS find political opportunities and threats,
inform politicians and influence public opinion, form coalitions: identify groups with
'similar' interests
, Special interest effect CORRECT ANSWERS small group of people, with incentive to
take political action, receive benefits at the expense of a large unorganized group of
people
Majoritarian politics CORRECT ANSWERS Widely dispersed costs and widely
dispersed benefits; no special interest groups take action on either side of the issue;
lobbying does not occur
Client politics CORRECT ANSWERS Widely dispersed costs and concentrated
benefits; one special interest group is active in favor of an issue; lobbying will likely be
successful
Entrepreneurial politics CORRECT ANSWERS Concentrated costs and widely
dispersed benefits; one special interest group is active against an issue
Interest group politics CORRECT ANSWERS Concentrated costs and concentrated
benefits; active special interest groups are on both sides of the issue; outcomes depend
on the relative strength of lobbying
Ventria Neutral CORRECT ANSWERS Federal government: USDA, EPA, FDA (no
action yet until Ventria wins a state)
Ventria Adversaries CORRECT ANSWERS Anti-GMO activist coalition, Japanese Rice
Retail Association, traditional rice, CA Secretary of Agriculture
Fight for CA CORRECT ANSWERS fight for approval based on terms existing in
proposal; relative strength is already with the opposition and they are getting stronger
Compromise for CA CORRECT ANSWERS already compromise and compliance costs
are increasing (increasing so much that they probably won't have a business model)
Run from CA CORRECT ANSWERS grow rice but no rice, Pro-GMO, low transport
costs, lower location costs, industry hub, no activists, cheap labor
2; 20; 2000; +2 mil; + 500 mil CORRECT ANSWERS 2nd largest export of rice in the
world; 20 employees; 2000 rice farms in CA; +2 mil infant diarrhea deaths annually; +
500 mil annual valuation of rice coming out of CA alone
Ventria moved to _____ then to ____. CORRECT ANSWERS Missouri; Kansas
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