Chapter Eight:
Implementing Nonmarket Strategies in Government
Arenas
True/False Questions:
1) Strategy formation and implementation are necessarily intertwined.
2) Most companies prefer high-profile nonmarket strategies.
3) Lobbying is a marginal component of most representation and information
strategies.
4) The pharmaceutical industry is a major lobbying force, but spends little money on
5) Lobbying as a profession has become increasingly specialized. .
6) Executives are often effective lobbysists because members of Congress and other
government officials want to hear about a firm’s concerns from the people in
charge.
7) High-level managers also have better knowledge of the firm’s activities than do
professional lobbyists and thus can be more specific.
8) Congressional members’ staffs are usually ignored in the lobbying effort because
they do not vote and have little influence on their bosses.
9) There are many principles for effective lobbying, including shading the facts if it
is your own best interest.
10) In one’s lobbying efforts, it is a good principle to make straightforward
presentations to members of trade associations.
11) With the decentralization of Congress in the early 1970s, subcommittees have
increased autonomy and an increased number of influential positions.
12) Federal Express is an example of a company that is so strong and profitable that it
need only spend a small amount of time and resources lobbying Congress.
13) Lobbying should be timed to the phases of the legislative process.
14) One way to get government allies is to do what the Semiconductor Industry
Association did—that is, form a Congressional Support Group made up of
members from both chambers of Congress.
15) The First Amendment of the Constitution establishes the right to petition the
government, so lobbying is a relatively regulated activity.
16) The principle law governing lobbying activities is the Lobbying Act of 1998.
17) Lobbyists are required to report the fees they receive as well as their expenditures.
18) The Ethics in Government Act of 1978 dealt with the issue of officials who leave
government and lobby former employers. It places restrictions on those former
officials.
19) Grassroots campaigns are based on the connection between constituents and their
elected representatives.
20) Mobilization involves providing information to constituents on the importance of
an issue and helping reduce the costs of participation.
21) “Fly–ins” is the modern equivalent of ‘bus–ins’ where an interest group will fly in
supporters to show support for their interests.
22) Letter-writing campaigns are the most expensive grassroots activity.
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23) A business grassroots strategy is built on corporate stakeholders, as identified by
the rent chain.
24) It is illegal to use employees in a grassroots campaign when their interests are
aligned with the firm’s.
25) The effectiveness of a grassroots campaign depends on demand-side factors.
26) Peak or umbrella organizations include firms from a number of industries and
thus represent a range of interests.
27) An ad hoc coalition is a group of interests that join together on a specific market
issue.
28) Although firms in the same industry are often aligned on issues, they may be
opposed on some nonmarket issues.
29) The alignment of interests not only affects who participates in a coalition but also
the bargaining within a coalition.
30) On some issues, particularly those characterized by majoritarian politics, firms
use private advocacy to communicate directly with the public.
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Multiple Choice Questions:
31) Which of the following are strategy implementation strategies?
a) Lobbying
b) Grassroots and constituency
c) Coalition building
d) All are correct
32) Which of the following is not a legitimate route of access to regulatory and
administrative agencies?
a) Campaign contributions
b) Constituency connection
c) Bribery
d) Personal relationships
33) Where does lobbying traditionally take place?
a) In committee
b) Behind the scenes
c) In the press
d) In full chamber
34) According to the Center for Responsive Politics, which of the following spent the
most in business lobbying expenses in 2007?
a) Transportation
b) Health
c) Finance, insurance, and real estate
d) Communications/electronics
35) All of the following are principles of effective lobbying except:
a) Know the officeholder’s interests.
b) Explore opportunities to build coalitions.
c) Time lobbying to the phases of the firm’s budget.
d) Make straightforward presentations.
36) What happened in Congress in the early 1970s gave additional powers to
subcommittees?
a) Centralization of the structure
b) Decentralization of the structure
c) More members were added to all committees
d) Members were given less power
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37) Congressional ______ in the early 1970s gave additional autonomy to
subcommittees and thereby increased the number of influential positions
substantially.
a) democratization
b) centralization
c) decentralization
d) apportionment
38) When legislation is being drafted or rewritten, lobbying often centers on which of
the following?
a) Committee staff
b) Executive branch
c) Clerk of the House
d) Members
39) In 1995, the Lobbying Disclosure Act required lobbyists to do what?
a) Register their activities
b) Report the amount of income they receive as well as their expenditures
c) Report the earnings of the corporations they represent as a percentage of their
lobbying budget
d) Register all of their grassroots members
40) Which of the following is the least expensive of the grassroots activities?
a) Organizing people
b) Letter writing campaigns
c) Actual trips to Washington to lobby
d) All of these are equally expensive
41) Business grassroots strategy is built on corporate stakeholders as identified by
what?
a) Rent chain
b) Money
c) Partisan politics
d) Median voters
42) The principal vehicle for creating a majority coalition is from:
a) Collection of minorities.
b) Large firms.
c) Those without power.
d) Anyone willing to join.
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43) Business coalitions are made up of three types except which of the following?
a) Peak organizations
b) Industry organizations
c) Ad hoc coalitions
d) stakeholder groups
44) Which of the following peak associations focuses on the concerns of small
business?
a) Inc.
b) Association of Small Business Concerns
c) Entrepreneurs and Small Business Organization
d) National Federation of Independent Business.
45) Trade associations serve a variety of _____ and ______ functions.
a) market, corporate
b) market, nonmarket
c) corporate, nonmarket
d) corporate, stakeholder
46) In Buckley v. Valeo (1976), the Supreme Court ruled what concerning limits on
campaign expenditures?
a) There are definite dollar limits
b) Any limit threatens the freedoms of speech and association
c) A limit of $100 million
d) A partial limit is fine to preserve the First Amendment
47) Campaign contributions are made for all but which of the following reasons?
a) Influence legislative voting
b) Obtain access to present or future officeholders
c) Affect outcome of elections
d) Help a CEO with his/her political future
48) In which of the following venues do managers testify?
a) Regulatory agencies
b) Congressional committees
c) Courts
d) All are correct
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49) In a regulatory setting, ______ is important not only because the information
presented can affect regulatory decisions, but also because it creates a record that
may serve as a basis for judicial review.
a) Affidavits
b) Evidence
c) Testimony
d) Law
50) Because lobbying is the centerpiece of most firms’ participation in political
issues, what two types of people are usually employed?
a) Professional lobbyists and grassroots
b) Professional lobbyists and ex-members
c) Professional lobbyists and former staff
d) Professional lobbyists and managers responsible for presenting a firm’s
position
Essay and Review Questions:
1) As the newly hired lobbyist for an international corporation in Washington, write
a brief report on your job explaining at least the following aspects: the nature of
lobbying; the importance of access to congress members; the significance of
timing; and the controls on lobbying. Give specific examples.
2) You would like to start your grassroots organization to bring government back to
the citizens of your city. Write the charter of this organization. Explain the
different tactics and strategies that are available to the organization. Evaluate the
potential effectiveness of the grassroots programs. Use some examples for
illustration.
3) There has been much talk about electoral reform. Write a report describing some
of the electoral strategies, the election finance laws, the pattern and purposes of
campaign contributions. What do you think should be done to reform the system?
4) Write your own proposals for reforming the role of business in the political
process in the USA. Evaluate the feasibility of each of your proposals. Give
examples.
5) You are an entrepreneur in a fast growing high-tech industry. You have heard that
the government plans to begin regulatory actions soon on your products. Because
the industry is so new, there are no organizations joined together to look after the
collective interests of the industry. What would you do in such a situation and
what would you suggest others in your industry do? Be specific.
6) Using the case of Responsible Lobbying as your focus, discuss and critique the
case from the perspective of politics, regulation, ethics and lobbying.
7) You want to be a lobbyist for an industry but are not sure which one. Write a brief
essay on why you want to be a lobbyist, what preparation you would need to be
one, the pros and cons of the job, and how you would evaluate which industry you
might lobby for.
8) What are the issues in the Internet Taxation case? Who are the important players
in the case and why? What strategies are exercised? Be specific in your analysis.