Running head: LEARNING SUMMARY 1 1
Learning Summary 1
The first chapter covers the interconnection between market and nonmarket environments,
and the responsibility of managers to understand the significance of the relation and strategies
required to address issues that impact an organization for it to survive and prosper in a business
environment. A market environment comprises of its employees, suppliers, customers, owner,
stakeholders and competitors and a nonmarket environment is made up of society, government,
social media and government and federal regulatory agencies. It is essential to understand the four
major categories in a nonmarket environment – issues (basic unit of analysis), interests (individual
or groups that have a stake of interest in the problem), institutions (government and
nongovernment entities) and information (the relationship of the action taken and its
consequences). Management must proactively work on identifying potential issues that can arise
within its businesses and effectively address their nonmarket issues.
The second chapter describes how a business strategy should integrate both the market and
the nonmarket components to improve both economic performance and overall performance of an
organization. An organization demonstrates effective management when it implements a
options that are important for the organization’s sustainable performance.