COMM 104 Chapter Notes - Chapter 9: Rent-Seeking, Norm (Social), Economic Rent
7 Feb 2016
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Michael porter"s take on strategy the essence of strategy is to be found in the choices and trade-offs a firm makes in its quest for a unique competitive position. Firms pursue strategies to either maximize the bottom line or an activist orientation that positions a company as pursing a social goal separate from profit maximization. Firms use ethics to differentiate themselves from that of their competitors. In economic theory, a competitive firm is always trying to get more for doing what it is currently doing. Firms need to make the right strategic choices to attract consumers. Two sub-strategies: societal strategy and a legitimacy strategy. Firms have to be able to explain their role in society in a way that goes beyond rent seeking. Emphasis was placed on firms making strategic decisions that would earn them social legitimacy and good standing in the communities in which they were competing.
