Business Dynamics

HR planning process

Preparing a human resource inventory of employees. Preparing a job analysis. Assessing future human resource demand. Assessing future labor supply. Establishing a strategic plan

on-the-job coaching

Refers to the training of an employee by an approved person to learn the skills necessary to complete the tasks.

Enterprise zones

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support

exchange rate

The measure of how much one currency is worth in relation to another.

individual

Values. Work background. Family status. Personality.

corporation bylaws

describe how the firm is to be operated from both legal and managerial points of view

job specification

describes the minimum qualifications a person must have to perform the job successfully

flexible manufacturing

designing machines to do multiple tasks so that they can produce a variety of products

one-to-one marketing

developing a unique mix of goods and services for each individual customer

small business investment company (SBIC)

government regulated investment company that borrows money from the SBA to invest in or lend to a small business Licensed by SBA

Management-top management

highest level of management, consisting of the president and other key company executives who develop strategic plans COO

Smaller community banks

more willing to lend money to smaller operations

Partnership-limited partnership

partnership in which only one partner is required to be a general partner

Partnership-General Partnership

partnership in which partners share equally in both responsibility and liability

compensation

payment includes Salary Hourly Wage/ Daywork Piecework System Commission Plan Bonus Plan Profit Sharing Plans Gain Sharing Plans Stock Options

fringe benefits

payments to employees other than wages or salary

Similar-to-me effect

perceive others who are similar to ourselves more positively than we perceive people who are different

Training and development

All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, where as development focuses on long-term abilities.

Partnership-limited liability partnership

All partners are limited partners and not responsible for the debts and other liabilities of other partners

Trade surplus

when a country exports more than it imports

GMS-joint ventures

when two or more companies (often from different countries) join forces - sharing resources, risks, and profits, but not actually merging companies - to pursue specific opportunities Often mandated by countries as a condition of doing business (China). Can increase a company's footprint and global growth. Can be used by competing companies to join forces

compressed workweek

work schedule that allows an employee to work a full number of hours per week but in fewer days

flextime plan

work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours or complete their assigned tasks

Assembly Line Layout

workers do only a few tasks at a time

Americans with Disabilities Act of 1990

A law passed in 1990 that requires employers and public facilities to make "reasonable accommodations" for people with disabilities and prohibits discrimination against these individuals in employment.

Conventional corporation

A state-chartered legal entity with authority to act and have liability separate from its owners (its stockholders). Enables many people to share in ownership

Control system

A system in which one or more outputs are forced to change in a desired manner as time progresses. accounting and finance

protective tariffs

A tariff designed to shield domestic producers of a good or service from the competition of foreign producers

Gantt Chart

A time and activity bar chart that is used for planning, managing, and controlling major programs that have a distinct beginning and end.

S corporations

A unique creation that looks like a corporation but is taxed like sole proprietorships and partnerships. Have shareholders, directors, and employees, plus the benefit of limited liability Have no more than 100 shareholders. Have shareholders that are individuals or estates, and who (as individuals) are citizens or permanent residents of the U.S. Have only one class of stock. Derive no more than 25% of income from passive sources

business

Any activity that seeks to provide goods and services to others while operating at a profit

Management-effective management in nonprofits

Be clear about your organization's purpose. Allow all employees to work with the groups they are serving. Invest in your employees. Nonprofit work is draining

risk

Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.

Small business Cons going overseas

Difficulty in finding financing. Not knowing how to get started. Not understanding cultural differences. Too much bureaucratic paperwork

Free trade Cons

Domestic workers (particularly in manufacturing-based jobs) can lose their jobs due to increased imports or production shifts to low-wage global markets. Workers may be forced to accept pay cuts from employers, who can threaten to move their jobs to lower-cost global markets. Moving operations overseas because of intense competitive pressure often means the loss of service jobs and growing numbers of white-collar jobs. Domestic companies can lose their comparative advantage when competitors build advanced production operations in low-wage countries.

Sole proprietorship Pros

Ease of starting and ending the business. Being your own boss. Pride of ownership. Leaving a legacy. Retention of company profits. No special taxes.

on-the-job training

Employee training at the place of work while he or she is doing the actual job.

executives-Humanists

European scholars, writers, and teachers associated with the study of the humanities (grammar, rhetoric, poetry, history, languages, and moral philosophy), influential in the fifteenth century and later.

executives-Culturalist

Focus on the symbolic aspect of culture

Entrepreneur cons

Freedom to fail. No paid vacations. No health insurance

Entrepreneur Pros

Freedom to succeed. Make own decisions. Possible wealth

Partnership Types

General partnership Limited partnership General partner Limited partner

venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Management function-Controlling

Measuring results against corporate objectives. Monitoring performance relative to standards. Rewarding outstanding performance. Taking corrective action when necessary

Goals

The broad, long-term accomplishments an organization wishes to attain. Part of planning

information based sector

The new era of business is likely to be dominated by the information-based sector.

Identity theft

The obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes

limited liability

The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability

Kennedy's four basic rights to consumers

The right to safety. The right to be informed. The right to choose. The right to be heard

Demography

The scientific study of population characteristics.

Service sector

The sector of the economy that provides services--such as health care, banking, and education--contrast to the sector that produces goods. generated all new jobs in economy since 1980's but rate of job growth has slowed

USMCA (United States-Mexico-Canada Agreement)

This is a regional trade agreement between the United States, Canada, and Mexico that is designed to replace NAFTA. The agreement has been signed by the leaders of all three countries, but at the time of publication has not yet been ratified by the legislatures of those countries.

Ethics-Steps to improve business ethics

Top management must adopt and unconditionally support an explicit corporate code of conduct. Employees must understand that senior management expects all employees to act ethically. Managers and others must be trained to consider the ethical implications of all business decisions. An ethics office must be set up with which employees can communicate anonymously. Involve outsiders such as suppliers, subcontractors, distributors, and customers. The ethics code must be enforced with timely action if any rules are broken.

Management skills for each level

Top managers require mostly conceptual skills, followed by HR skills and technical skills. Middle managers require conceptual, HR, and technical skills in equal parts. First-line managers require mostly technical skills, followed by HR skills and conceptual skills

organizational

Top-level management philosophy. Firm's reward system. Job dimensions.

Managers practice the art of getting things done using organizational resources such as

Workers, information and equipment

Telecommuting

Working at home by using a computer terminal electronically linked to one's place of employment.

Entrepreneur-reasons to be an entrepreneur

You have potential for long-term returns! You don't have a mortgage or kids to take care of. You can survive on little funds and work long hours. No disruption to your career path. It hasn't started yet! You're more adaptable and have higher risk tolerance at a younger age Opportunity. Profit. Independence. Challenge

Corporate Social Responsibility (CSR)

a business's concern for society's welfare

foreign subsidiary

a company owned in a foreign country by another company, called the parent company

Business plan

a formal written document that describes the nature of a business and how it will operate Cover Letter. Section 1—Executive Summary. Section 2—Company Background. Section 3—Management Team. Section 4—Financial Plan. Section 5—Capital Required. Section 6—Marketing Plan. Section 7—Location Analysis. Section 8—Manufacturing Plan. Section 9—Appendix Describes all aspects of the business, including product, the target market...

job rotation

a job enrichment strategy that involves moving employees from one job to another

fixed position layout

a layout that brings all resources required to create the product to a central location

process layout

a layout that organizes the transformation process into departments that group related processes

participative/democratic leadership

a leadership style in which the leader offers advice but also participates in the team dynamics and seeks input from other team members

Insourcing

a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations helps offset the number of jobs being outsourced

continuous process

a production process in which long production runs turn out finished goods over time

job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

executives-Politicist

adept at politics

customers-external customers

dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use

Foreign Corrupt Practices Act

deals with bribery to obtain business

Empowerment

delegation of authority to solve customers' problems quickly—usually by the first person the customer notifies regarding a problem

GATT (General Agreement on Tariffs and Trade)

international agreement first signed in 1947 aimed at lowering trade barriers

C The attributes of a conventional corporation include that

it is state chartered it is a legal entity corporate liability is separate from owners

autocratic leadership

leadership style that involves making managerial decisions without consulting others

free-rein leadership

leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

export assistance centers

provide hands-on exporting assistance and trade-finance support for small and medium-sized businesses that wish to directly export goods and services

crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people

Intrapreneur

someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization's resources to try to realize it

Planning types

strategic, tactical, operational, contingency

Department of Commerce Bureau of Industry and Security

support companies to ship globally

revenue tariffs

taxes designed to raise funds for the importing government

modular layout

teams of workers combine to produce more complex units of the final product

Process manufacturing

that part of the production process that physically or chemically changes materials

Assembly process

that part of the production process that puts together components

skills-conceptual skills

the ability to analyze and diagnose a situation and to distinguish between cause and effect

comparative advantage

the ability to produce a good at a lower opportunity cost than another producer

absolute advantage

the ability to produce a good using fewer inputs than another producer

ethnocentricity

the belief in the inherent superiority of one's own group and culture

Social progress

the belief that society will continually improve through human initiative needs the right business environment

e-commerce

the buying and selling of goods over the internet

acquisition

the buying of a whole company, a patent, or a license to produce someone else's product

merger-horizontal merger

the combination of two or more firms competing in the same market with the same good or service

merger-vertical merger

the combination of two or more firms involved in different stages of producing the same good or service

ISO 9001

the common name given to quality management and assurance standards

Ultimate Resource

the company's people

quality of life

the degree of overall satisfaction that a person gets from life

Standard of living

the degree of wealth and material comfort available to a person or community.

Balance of trade

the difference between a country's total exports and total imports

balance of payments

the difference between the flow of money into and out of a country

corporate philanthropy

the dimension of social responsibility that includes charitable donations

corporate responsibility

the dimension of social responsibility that includes everything from hiring minority workers to making safe products

corporate policy

the dimension of social responsibility that refers to the position a firm takes on social and political issues

Company Transparency

the process of being open, honest, and straightforward about various company operations

Human Resource Management (HRM)

the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

Planning-Strategic Planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

Planning-tactical planning

the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

Niche marketing

the process of finding small but profitable market segments and designing or finding products for them

Job Analysis

the process of getting detailed information about jobs

orientation

the process of introducing newly hired employees to their new workplace

Planning-contingency planning

the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

facility location

the process of selecting a geographic location for a company's operations

Planning-operational planning

the process of setting work standards and schedules necessary to implement the company's tactical objectives daily tasks and decisions

Efficiency

producing goods and services using the least amount of resources

GMS-exporting

producing goods in one country and selling them in another

apprenticeships/internships

programs in which students split their time among working at a company, taking career-related classes, and doing regular academic coursework

market

a group of buyers and sellers of a particular good or service

franchise agreement

an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory

job sharing plans

an arrangement whereby two part-time employees share one full-time job

Industrial robots

devices that can be programmed to perform many industrial tasks that are dangerous or difficult for humans to perform consistently work 24 hours a day, seven days a week with great precision/accuracy

Management function-Planning

Setting organizational goals. Developing strategies to reach those goals. Determining resources needed. Setting precise standards

GMS-Joint venture benefits

Shared technology and risk. Shared marketing and management expertise. Entry into markets where foreign companies are often not allowed unless goods are produced locally.

Watchdogs-5 types

Socially conscious investors. Socially conscious research organizations. Environmentalists. Union officials. Customers

Objectives

Specific, short-term statements detailing how to achieve the organization's goals. Part of planning

quality

consistently producing what the customer wants while reducing errors before and after delivery to the customer

Sarbanes-Oxley Act

protects employees of publicly traded companies who provide evidence of fraud to investigators

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers. low wage employees

Small Business Administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans. Standard (7a) loans. Microloans SBA Express. Export Express. International trade loans. Community Adjustment and Investment Program (CAIP). 504 certified development company (CDC) loans. CAP Line loans.

Partnership

A business in which two or more persons combine their assets and skills

Sole Proprietorship

A business owned by one person

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

non-profit organization

A business whose goal is to provide a service rather than to make a profit, such as the American Red Cross.

ISO 14001

A collection of the best practices for managing an organization's impact on the environment.

GMS-franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

home-based work

- Home-based work has increased dramatically over the past decades. - Home-based work used to involve piecework, sewing, or flower making. - This mode of home production is declining due to competition from lowwage workers overseas. - Telecommuting is much more common now than ever.

Age Discrimination in Employment Act

1967 law that prohibits discrimination of employees 40 years and up.

Partner-General Partner

An owner (partner) who has unlimited liability and is active in managing the firm.

GMS-strategic alliance

A long-term partnership between two or more companies established to help each company build competitive market advantages They don't typically share costs, risks, management, or profits. Strategic alliances provide broad access to markets, capital, and technical expertise.

Staffing

A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives

exit interview

A meeting of a departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving.

Program Evaluation and Review Technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.

Partnership-Master Limited Partnership (MLP)

A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax.

shareholder

A person who invests in a corporation by buying stock and is a partial owner Cannot be a shareholder if not a citizen

Networking

A way of making and using contacts to get job information and advice

GMS-Soveirgn wealth funds

Achieving geopolitical objectives. Gaining control of strategic natural resources. Obtaining sensitive technologies

services

Actions or activities that one person performs for another

Stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

Management function-Organizing

Allocating resources, assigning tasks, and establishing procedures for accomplishing goals. Preparing a structure (organization chart) showing lines of authority and responsibility. Recruiting, selecting, training, and developing employees. Placing employees where they'll be most effective Designs the structures and systems in which everyone works together to achieve the organization's goals and objectives

NAFTA (North American Free Trade Agreement)

Allows open trade between the US, Mexico, and Canada.

Circular Economy

An economy model in which resources remain in use for as long as possible, from which maximum value is extracted while in use, and the products and materials are recovered and regenerated at the end of the product life cycle.

Database

An electronic storage file for information Creates efficiency in that the store can quickly replenish items that are purchased

performance appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination. Used to identify training needs. Use as a promotion tool. Recognize worker's achievements. Evaluate the firm's hiring process. Judge the effectiveness of the firm's orientation process. Use as a basis for possible termination of a worker.

Trade deficit

An excess of imports over exports

GMS-multinational corporation

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

Merger

Combination of two or more companies into a single firm

Baldrige awards

Companies can apply for awards in these areas: * Manufacturing *services *small businesses *nonprofit/government *education *health care

Environment

Competition. Economic conditions. Social/cultural institutions.

Management function-Leading

Guiding and motivating employees to work effectively to accomplish organizational goals and objectives. Giving assignments. Explaining routines. Clarifying policies. Providing feedback on performance

mentors

Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization.

Management-factors influencing managerial ethics

Individual, Organizational, Environment

Corporation disadvantages

Initial cost. Extensive paperwork. Double taxation. Two tax returns. Size. Difficulty of termination. Possible conflict with stockholders and board of directors

Off-the-job training

Internal or external training programs away from the workplace that develop any of a variety of skills or foster personal development.

Management-Operations management

Inventory management. Quality control. Production scheduling. Follow-up services Facility location setting up good experience for others

GMS-foreign direct investment

Investment made by a foreign company in the economy of another country.

Ethical dilemmas

Is my proposed action legal? Is it balanced? How will it make me feel about myself?

Idea-An idea is a good opportunity if

It fills customers' needs. You have the skills and resources to start a business. You can sell the product or service at a reasonable price and profit. You can get your product or service to customers before the window of opportunity closes. You can keep the business going

job sharing pros

It provides employment opportunities for many people who cannot work full-time. Workers tend to be enthusiastic and productive. Absenteeism and tardiness are reduced. Employers can schedule part-time workers in peak demand periods. Experienced (retirement age) are retained.

goods

Items purchased to satisfy needs and wants

Outsourcing Cons

Jobs may be lost permanently and wages fall due to low-cost competition offshore. Offshore outsourcing may reduce product quality and can therefore cause permanent damage to a company's reputation. Communication among company members, with suppliers, and with customers becomes much more difficult.

limited liabilty company

LLCs are similar to an S corporation but without the special eligibility requirements. More than half of new business registrations in some states are LLCs.

Production

Land, labor, capital, entrepreneurship, and knowledge adds value, or utility, to materials or processes

Franchise Cons

Large start-up costs. Shared profit. Management regulation. Coattail effects. Restrictions on selling. Fraudulent franchisors

Outsourcing Pros

Less-strategic tasks can be outsourced globally so that companies can focus on areas in which they can excel and grow. Outsourced work allows companies to create efficiencies that in fact let them hire more workers. Consumers benefit from lower prices generated by effective use of global resources and developing nations grow, thus fueling global economic growth.

Corporation advantages

Limited liability. Ability to raise more money for investment. Size. Perpetual life. Ease of ownership change. Ease of attracting talented employees. Separation of ownership from management

LLC's Pros

Limited liability. Choice of taxation. Flexible ownership rules. Flexible distribution of profits and losses. Operating flexibility.

Franchise Pros

Management and marketing assistance. Personal ownership. Nationally recognized name. Financial advice and assistance. Lower failure rate

Partnership pros

More financial resources. Shared management and pooled/complementary skills and knowledge. Longer survival. No special taxes

job sharing cons

Need to hire, train, motivate, and supervise at least twice as many people. Prorate some fringe benefits

LLC's Cons

No stock; ownership is nontransferable. Fewer incentives. Taxes. Paperwork

selection process

Obtaining complete application forms. Conducting initial and follow-up interviews. Giving employment tests. Conducting background investigations. Obtaining results from physical exams. Establishing trial (probationary) periods

cooperatives (co-ops)

Organizations composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization Serve one billion members worldwide. Members democratically control the business by electing a board of directors that hires professional management. Other cooperatives are formed to give members more economic power as a group than they have as individuals, such as a farm cooperative wholesale rates

Small business Pros going overseas

Overseas buyers enjoy dealing with individuals. They can usually begin shipping much faster. They provide a wide variety of suppliers. They can give more personal service and attention

executives-Rationalists

People who looked at the world in a rational, or reasonable and logical, way

service industries must

Provide customers with quality care and attention. Maintain close relationships with suppliers. Practice continuous improvement.

Executives-4 types

Rationalist, Humanist, Politicist, Culturist

Entrepreneur-What does it take to be an entrepreneur?

Self-directed. Self-nurturing. Action-oriented. Highly energetic. Tolerant of uncertainty

dumping

Selling goods in another country below market prices

Control process

Step 1: Establish clear standards Step 2: Monitor and record performance Step 3: Compare results against standards Step 4: Communicate results Step 5: If needed, take corrective action

GMS-Joint venture drawbacks

Stolen or obsolete technology. Becoming too large to be flexible. One partner might break ties.

1972 Equal Employment Opportunity Act (EEOA)

Strengthened the Equal Employment Opportunity Commission (EEOC). Gave EEOC the right to issue workplace guidelines for acceptable employer conduct. EEOC could mandate specific recordkeeping procedures. EEOC was vested with the power of enforcement.

tariffs

Taxes on imported goods

profit

The financial gain made in a transaction

factors of production

The five resources used to create wealth: Land (or natural resources). Labor (workers). Capital. The most important in the creation of wealth: Entrepreneurship. Knowledge

purchasing

The function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services. Companies may use one supplier or many. The Internet has transformed purchasing

Free trade Pros

The global market contains over 7.7 billion potential customers for goods and services. Productivity grows when countries produce goods and services in which they have a comparative advantage. Global competition and less-costly imports keep prices down, so inflation does not curtail economic growth. Free trade inspires innovation for new products and keeps firms competitively challenged. Uninterrupted flow of capital gives countries access to foreign investments, which help keep interest rates low.

ethics in business

The process of applying a set of values concerning right and wrong to a business context, including the various moral and ethical problems that can arise in a business setting, and duties and obligations of those who engage in commerce.

Statistical Process Control (SPC)

The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.

management development

The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.

computer-integrated manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing.

Sole proprietorship Cons

Unlimited liability — Limited financial resources. Management difficulties. Overwhelming time commitment. Few fringe benefits. Limited growth. Limited life span

Partnership cons

Unlimited liability. Division of profits. Disagreements among partners. Difficulty of termination

PMI

Used to evaluate several possible solutions to a specific problem their company is facing

management-First line manager

a manager who coordinates and supervises the activities of operating employees evaluates daily performances of workers

Material Requirements Planning (MRP)

a planning system that schedules the precise quantity of materials needed to make the product

intermittent process

a production process in which the production run is short and the machines are changed frequently to make different products Used in most manufacturing facilities today

Six Sigma Quality

a quality measure that allows only 3.4 defects per million opportunities

Ethical dilemma

a situation where you must choose between equally unsatisfactory alternatives

mission statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment should address the nature of the product or service, the customer needs, and the organization's self concept

mass customization

a strategy that uses technology to deliver customized services on a mass basis

Enterprise Resource Planning (ERP)

a suite of applications called modules, a database, and a set of inherent processes for consolidating business operations into a single, consistent, computing platform

Insurance agent

a valuable source of information regarding techniques to reduce a firms exposure to risk

Halo/Horn Effect

allowing performances in specific areas to unfairly influence overall performance evaluation

Service Corps of Retired Executives (SCORE)

an SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)

Leveraged Buyout (LBO)

an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing

Vision

an encompassing explanation of why the organization exists and where it's trying to head Part of planning

Small businesses and reasons for failure

an independently owned business that usually has the owner as its manager Managerial incompetence. Inadequate financial planning. Choosing the wrong type of business

embargo

an official ban on trade or other commercial activity with a particular country.

Partner-limited partner

an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment

insider trading

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends New Supreme Court ruling makes even those who share insider information without profiting guilty Regulation FD

Leadership Styles

autocratic, participative/democratic, free-rein

Countertrading

bartering goods for goods

B2B

business to business Type of e-commerce

B2C

business to consumer Type of e-commerce

importing

buying products from another country

Incubators

centers that offer new businesses low-cost offices with basic business services

High tax rate

discourages entrepreneurship

contingent workers

employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students

corporate social initiatives

enhanced forms of corporate philanthropy directly related to the company's competencies Companies commit resources and expertise toward helping in broad-based humanitarian issues

Micropreneurs

entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle

ethics-integrity-based ethics codes

ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees

ethics-compliance-based ethics codes

ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

contrast effect

evaluation of a person's characteristics that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics

Entrpreneurial team

experienced professionals from different areas of business

Management-knowledge management

finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm

Watchdogs

groups that monitor government activity and educate the public on various aspects of the political process, including candidate compliance with campaign finance laws, policy proposals and legislative voting behavior, and bureaucratic implementation of public policy.

revenue

income

customers-Internal customers

individuals and units within the firm that receive services from other individuals or units

Angel investors

individuals who invest in start-up companies with high growth potential in exchange for a share of ownership

sociocultural forces

influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization

Whistleblowers

insiders who report illegal or unethical behavior Dodd-Frank Wall Street Reform and Consumer Protection Act make them receive up to 30% of the penalty funds that exceeds 1 million that the courts recover from companies proven to be in violation

Global market Strategies

licensing, exporting, franchising, contract manufacturing, international joint ventures and strategic alliances, foreign direct investment. multinational corporation, sovereign wealth funds

import quotas

limitations set by a government on the amount of a product allowed to enter or leave a country

Devaluation

lowering the value of a nation's currency relative to other currencies

off-the-job courses and training

managers periodically go to classes or seminars for a week or more to hone technical and human relations skills

Management-Supervisory Management

managers who are directly responsible for supervising workers and evaluating their daily performance

Directing

motivating and leading employees to achieve organizational objectives giving explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization

Farm cooperative

organization in which farmers share in growing and selling farm products

Civil Rights Act of 1964

outlawed discrimination based on race, color, religion, sex, or national origin

Own stocks in company makes you an...

owner of the company

Organizations-All organizations require the following

planning information management capital

Management-4 functions of management

planning, organizing, leading, controlling

GMS-contract manufacturing

private label manufacturing by a foreign company Experiment in a new market without incurring heavy start-up costs Temporarily meet an unexpected increase in orders.

Understudy positions

selected employees work as assistants to higher-level managers and participate in planning and other managerial functions until they are ready to assume such positions themselves

exporting

selling products to another country

skills-human relations skills

skills that involve communication and motivation; they enable managers to work through and with people

skills-Technical skills

skills that involve the ability to perform tasks in a specific discipline or department

merger-conglomerate merger

the joining of firms in completely unrelated industries

GMS-Licensing

the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee

Management-middle management

the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling

WTO (World Trade Organization)

the only international body dealing with the rules of trade between nations

facility layout

the physical arrangement of resources (including people) in the production process

Statistical Quality Control (SQC)

the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning

recruitment

the process through which the organization seeks applicants for potential employment

Management

the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

lean manufacturing

the production of goods using less of everything compared to mass production Take less human effort. Take less manufacturing space. Require less investment in tools. Require less engineering time to develop a new product

Cybersecurity

the state of being protected against the criminal or unauthorized use of electronic data, or the measures taken to achieve this. will continue growing to both business and consumer

Corporate values

the stated and lived values of a company Learned by observing the actions of others in the organization

business environment

the surrounding factors that either help or hinder the development of businesses Economic and legal environment. Technological environment. Competitive environment. Social environment. Global business environment

Management-Production management

the term used to describe all the activities managers do to help their firms create goods

computer-aided design (CAD)

the use of computers in the design of products

computer-aided manufacturing (CAM)

the use of computers in the manufacturing of products

job simulation

the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job

trade protectionism

the use of government regulations to limit the import of goods and services

Form utility

the value producers add to materials in the creation of finished goods and services

CAFTA (Central American Free Trade Agreement)

trade agreement between US and Central American countries to reduce tariffs and increase trade

vestibule training

training done in schools where employees are taught on equipment similar to that used on the job

online training

training programs in which employees complete classes via the internet