While a firm's competitive advantage derives in large part from the development and exploitation of difficult to imitate capabilities and resources in the market environment, a firm's nonmarket business environment also poses important hazards and opportunities for strategy makers. Many barriers to imitation originate from legal rules or government policies that favor some capabilities over others. The rules, and in many cases their enforcement, are not fixed constraints. Rather, they are determined by the competition between interests in public institutions. In many industries, participation in the policymaking and judicial process is a critical component in creating or sustaining a company's competitive advantage. This class focuses on the nonmarket environment from the point of view of managers and consultants. Its primary objectives are to examine the nonmarket environments of business in terms of the issues, interests, and institutions; to learn a set of conceptual frameworks for analyzing those issues, interests, and institutions; and to practice forming effective strategies for managing in nonmarket environment. Three sets of topics are considered: Anticipation and management of nonmarket issues, Nonmarket strategies in governmental arenas, and Globalization and international business
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