Businesses' Strategies: Information, Societal, Political & Legal

Businesses' Strategies: Information, Societal, Political & Legal
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  • 0:01 Business Strategies
  • 0:37 Information Strategies
  • 1:39 Societal Strategies
  • 2:45 Political & Legal Strategies
  • 5:10 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
Businesses have to influence their stakeholders to support organization objectives. They can accomplish this by utilizing informative, societal, political and legal strategies through various tactics. Learn about these strategies and more in this lesson.

Business Strategies

Although the government has a great deal of power to influence business, there are also many strategies that businesses utilize to influence society, politicians and regulatory agencies. In this lesson, you will learn about the informative, societal, political and legal strategies that businesses embrace to achieve their objectives. Business strategies are a corporation's long-term plans to achieve specific objectives. Let's take a look at how Crazi Toys, a manufacturer of kids' toys, utilizes specific strategies to achieve their corporate objectives.

Information Strategies

A key business strategy is the use of information to appeal to stakeholders to achieve a goal. Businesses need to develop information strategies, which contain pertinent data, scientific research and facts that will achieve ethically and socially responsible business objectives. Crazi Toys also hires consultants to help acquire the facts and data needed to explain the company's public policy to regulators.

In order to achieve an objective, such as the passage of beneficial legislation, the company needs to make regulators understand that their policy benefits stakeholders. For example, Crazi Toys used financial and employment data to get government approval to build a new factory in a local county that was against hosting the factory due to trucks in and out of their community. Crazi Toys was successful because they showed both legislators and society that it would be beneficial through the creation of many new jobs.

Societal Strategies

Keeping both community stakeholders and investors happy can be a difficult balance for businesses. Crazi Toys knew that investors would be happy with the new plant's location in the U.S., but was aware of local concern from communities about traffic, pollution and construction. Crazi Toys needs to have societal strategies in place to handle activists that might attack or protest organization objectives. These strategies allow a company to communicate with community, media and other external stakeholders.

If Crazi Toys acts as ethically as possible, creates coalitions to support their objectives and uses engaging media relations, most strategies can be effective. For example, Crazi Toys became active in the local town's chamber of commerce, donated money to schools, gave away tons of free toys to area charities and held an open town meeting. This caused the community to slowly sway toward supporting the new factory due to their effective societal plan.

Political and Legal Strategies

Companies also develop political and legal strategies to achieve their business objectives. These are achieved by communicating with legislators and regulators to communicate a business' purpose. Crazi Toys used the following strategies to get their new factory approved:

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