Term
| Corporate Social Strategy |
|
Definition
| integrate non-market forces into market strategy |
|
|
Term
|
Definition
| Political, economic, social, and technology |
|
|
Term
| Bp bought what two companies |
|
Definition
| Arco (gas and oil) and Solarex (solar energy) |
|
|
Term
| What did beyond petroleum do for BP |
|
Definition
first mover advantage
Enhanced brand equity and reputation
Manage regulation risks
Manage growing social risk (NGO) |
|
|
Term
|
Definition
Heightened public expectations
Green Wash award by green peace |
|
|
Term
|
Definition
| market inefficiencies exist |
|
|
Term
| Public policy changes can |
|
Definition
| correct inefficiency or cause it |
|
|
Term
| Socially efficient production level |
|
Definition
1. Produce and sell products that consumers value more than the cost of production
2. Avoid producing and selling product that consumers value less than the costs of production |
|
|
Term
|
Definition
| Difference between what customers are willing to pay and the price they have to pay |
|
|
Term
|
Definition
| Difference between the price sellers receive and the minimum supply price needed to cover cost |
|
|
Term
| Taxes imposed on sellers causes? |
|
Definition
| inward shift of supply curve. Raises cost of production. Efficiency enhancing in markets that are over producing |
|
|
Term
|
Definition
| Causes an outward shift of supply curve. Lower cost of production. Decrease price to buyers, increased price to sellers, increase quantity bought and sold. efficiency enhancing in markets that are under productive. |
|
|
Term
| Effects of Productive Regulation |
|
Definition
| Supply curves shifts inward. Higher operating cost. Increase prices to buyers, decreased prices to sellers, reduces quantity sold and bought. Efficiency enhancing in markets that are over producing. |
|
|
Term
|
Definition
| Assumed to be rationally ignorant. costly to become informed and doubtful vote will make a difference. |
|
|
Term
| Politicians (elected officials) |
|
Definition
| vote maximizers. achieve goals depends on their election. They try to provide info about themselves at no charge. |
|
|
Term
| Bureaucrats (civil servants) |
|
Definition
| Budget Maximizers. Not elected, but hired into office. Seek promotion, higher pay, prestige, job security, need higher budget. |
|
|
Term
| Four types of inefficiencies |
|
Definition
Shortsightedness Effect
Lack of Operational Efficiency
Lobbying/Rent Seeking
The Special Interest Effect |
|
|
Term
|
Definition
| Clearly defined current benefits and future cost are hard to identify. Maximized current vote and harm future. |
|
|
Term
|
Definition
| Public sector has no profit motive. Reduce incentive of gov't to keep cost low. Bureaucrats seldom gain from reducing cost. |
|
|
Term
|
Definition
| devoting resources to influence public policy formation in order to bring more income in your interest. (find political opportunities, inform politicians, form coalitions) |
|
|
Term
|
Definition
| small group of ppl receive benefits at the expense of a large group. |
|
|
Term
|
Definition
| Cost Widely dispersed / Benefits Widely dispersed. No special interest. Lobbying does not occur. (social security) |
|
|
Term
|
Definition
| Cost- widely dispersed. Benefits- Concentrated. One special interest group is active in favor of an issue. (subsidizing foreign advertisement) Lobbying will likely be successful. |
|
|
Term
|
Definition
| Cost- concentrated. Benefits- widely dispersed. One special interest group is active against an issue. Lobbying would be costly. (nuclear waste dumps) |
|
|
Term
|
Definition
| Cost- concentrated. Benefits- concentrated. Outcome depends on strength of lobbying (underage drinking) |
|
|
