BA107 Social and Political Environment of Business

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BA107 Social and Political Environment of
Business

• Spring 2004 WEEK 4
• Political Theory and Institutions

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Ego

• Helen Liang
• 4th yr PhD student in Business Public Policy,
  Haas School of Business
• From China
• How to find me
• fenliang_at_haas.berkeley.edu
• OH Friday 2-4pm, F535 or F534
• Class Website http//faculty.haas.berkeley.edu/am
  artens/teaching/ba107spr04/ba107spr04.htm
• The boundary of her power Week4-6 Political
  institutions and strategy, Week 11 CSR, Week 15
  Wrap-up w/ Andrea

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Agenda

• Paper Writing Some cheap advice
• Case Study California Recall

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Paper Writing

• Where to start
• Have a good structure
• Common pitfalls
• Youre welcome and encouraged to discuss the
  paper in my OH

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Where to Start

• Find the two parties position on economic issues
  (well talk more about this in next weeks
  section)
• Democratic http//www.democrats.org/issues/index.
  html
• Republican http//www.gop.com/GOPAgenda/
• Find your firms interest
• Search news article in Proquest
• http//www.lib.berkeley.edu/BUSI/ejournals.html
• Or Lexis-Nexis Academic
• http//www.lib.berkeley.edu/BUSI/
• More database at
• http//www.lib.berkeley.edu/BUSI/dbGuides.html
• For some resources you need to be at Haas to use
  them
• The Haas Library website is a very good place to
  look for information

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Have a Good Structure

• Economize your words 800 is not a lot!!!
• Have a good introduction
• Whats the issue/argument
• How are you going to argue for it
• Body a solid argument
• Conclusion
• Summary and caveats

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Common Pitfalls

• Only facts, no analysis and argument
• Generic drug manufacturers are hurting pharmacy
  firms who do RD
• Why? What can you do as a manager for Pfizer?
  What are the pros and cons of possible measures
  you can take? Why do you choose some actions over
  the others?
• No words on alternative perspectives
• We are going to lobby for a tighter IPR regime
• This is good, but
• Does a tighter IPR regime help? Will legal
  actions really deter the copy cats?
• What are the cost and potential problems with
  legal actions? What are the alternative
  non-market strategies?
• Are there any more efficient ways to deter
  generic drug makers? What about licensing to one
  or two generic drug makers and let them deter
  others from entry? Whats the best mix of market
  and non-market strategy?

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Case Study California Recall

• Take-away for your paper
• Articulate alternative points of view, knowing
  there is no sure answers
• Understand the political spectrum, from left to
  right

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Arnolds 5pts Econ Platform

• Tax structure to encourage growth and job
  creation
• Energy crisis clean-up
• End the litigation lottery
• Fix worker compensation system
• Cut bureaucracy and regulation

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What about his stand on Social issues?

• Environment protection air and forest
• Gun control
• Legal Marijuana
• So Where is Arnold on economic and social
  spectrum? Is he on the left or right? Or center?

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Q1. Should Arnold go to Washington DC to ask for
federal help for the state? If so, what areas
should he focus on?

• Think of how does federal policy influence
  California, and what influence does Arnold want
  to add to California?
• Highway building? Energy crisis refund and
  renegotiation?
• Will Bush help Schwarzenegger or not? Why?

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Q2. How should Arnold handle the realities of
being a Republican in a state with a Democratic
legislature and a Democratic-leaning population?

• Will Democratic legislators agree with his econ
  platform?
• What about his social stand points?

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Arnolds 5pts Econ Platform

• Tax structure to encourage growth and job
  creation
• Energy crisis clean-up
• End the litigation lottery
• Fix worker compensation system
• Cut bureaucracy and regulation

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Q3. How much should Arnold appeal to the core
conservatives in the Republican parties?

• Core conservatives are the people who are most
  passionate about conservative ideology, who are
  most likely to be involved in political
  activities, and who are most likely to vote.
• Arnold is viewed as a moderate within the GOP, so
  how should he deal with different people within
  the party while appealing to all voters? What is
  the trade-off?

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Q4. Aside from the above questions, what are the
primary areas of economic policy making in
California that need to be addressed by the new
governor?

• Housing cost?
• Help High-Tech industry?
• Immigration issues?
• Take-away why are these issues important? How
  can the governor deal with them?

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