Business

Non market environment refers to forces that influence the interaction of individuals, interest groups, organizations and governments with the markets. It also involves factors that play a role in determining market systems which includes social, economic and political factors. This paper will describe the frameworks for analyzing political and non market action on issues characterized by opposing interests. The paper will also formulate strategies for participating effectively and responsibly in politics of non-market issues.

Question one. 
Political influence is a key non-market action that characterizes issues of opposing interests. The globalization process has provided the necessity to effect political and nonmarket actions thereby affecting market dynamics with particular focus to regulatory frameworks. Governments are increasingly under pressure to provide the right leadership in guiding national economies and to some extend regional and international economies (Daniels et al, 2007).  Correcting market situations is a process that requires political and nonmarket actions. These actions are basically regulatory in nature. In addition, regulatory framework defines the legal and social aspects of markets which are shaped by government policy and interest. Similarly, competition provides one of the main frameworks for analyzing political and nonmarket actions. Companies have to implement strategies that support their internal organization, distribution and supply networks and to streamline their business by enhancing efficiency. In some circumstance the government becomes one of the customers or the only customer. On the other hand, the government can be the only provider of certain scarce resources. This also forms the basis for political and non-market actions especially if there is competition for resources controlled by the government. In the financial market, foreign exchange is one of the areas where governments have a lot of influence. The relevance of foreign exchange market is its significance in importation and exportation business and the attraction of foreign investment. Based on the contribution of international trade and investment to local economies, foreign exchange markets are severely controlled by the central governments of respective countries or economic blocks. The need to enhance political stability is another basis for application of political and nonmarket actions. This is very critical considering that political instability is a major obstacle to economic growth and this presents the opportunity for political intervention to restore order in society and market situations.

Question two. 
For business to participate effectively and responsibly in the politics of nonmarket issues it is very important for interested parties to have clear strategies. Creation of viable business strategies is a process that requires the application of both market and nonmarket strategies. Various instruments are used to influence non-market players. Some of the strategies used by multinational businesses include sponsorship and lobbying (Baron, 2006). These strategies ensure effective and responsible participation in the politics focused on non-market stakeholders (Milgrom and Roberts1992). Lobbying involves influencing the government or other interest groups by use of law makers, constituents or other interest groups. Sponsorship has also been widely used by companies to influence government policy making processes. It is imperative to note that public-private partnerships are very critical in influencing non-market forces. These partnerships are becoming more frequent given the change in business environment which is more determined by political and nonmarket forces. This is especially critical because in some industries and business ventures, market success is largely determined by nonmarket forces (Scott, 1995). The government will always have control over basic issue affecting its people and its the responsibility of companies to come up with clear strategies to manipulate business processes.

Conclusion
Based on the above discussion it is notable that both market and nonmarket forces play a significant role in determining business environments. Due to globalization and change in market structures, markets are increasingly manipulated by political and nonmarket factors. In my observation, it is therefore important for companies to have clear proactive and reactive strategies on how to deal with the nonmarket issues.