Chapter 3: Managing External Relations

environmental scanning

- trend in the trade press of your industry - ask your customers and suppliers what they see on the horizon - keep notes on how work has changed - subscribe to blogs outside your area of business

Five skills for managing relations with the environment

1. building legitimacy 2. developing a social network 3. handling a crisis 4. achieving sustainability 5. making ethical decisions

caveat emptor

a latin expression which means "let the buyer beware" which has been made into a philosophy sometimes used by businesses to put the burden for consumer protection onto the customer

general environment

a part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

task environment

a part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups

organizational culture

a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done

ethical dilemma

a situation that occurs when a person's values are in conflict, making it unclear whether a decision is the right thing to do

ethics

a system of values that people consider in determining whether actions are right or wrong

billboard principle

ask whether someone would be comfortable having his decision and name advertised on a billboard for the public to see

social capital

characteristics of a business, like trust, consistency, and networks, that represent potential social obligations which are an asset of the firm or entrepreneur

organizational identity

composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories, part of the BRIE model

Baldrige Award

given by the US govt to businesses and nonprofit organizations that have been judged outstanding in seven measures of quality leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results

sustainable entrepreneurship

identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes

networking

interacting with others in order to build relationships useful to a business

International Standards Organization

refers to certification for having met a standard of quality that is consistently evaluated around the world

golden rule

suggests you treat others in the manner you wish to be treated

utilitarianism

supports seeking the greatest good for the greatest number of people

mutuality

the action of each person helping another

legitmacy

the belief thhat a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors

social network

the entrepreneur's set of relationships and contacts with individuals and institutions way to work trust, reciprocity, and long-term relationships into your day-to-day business operations

external environment

the forces institutions and people outside the boundary of the firm

external relations

the general description for the processes and skills used in the management of a firm's interactions with people, organizations and institutions outside of its boundary

internal environment

the people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

environment

the sum total of forces outside of the entrepreneur and the firm

universalism

there is a code of right and wrong that everyone can see and follow

bootstrapping

using low-cost or free techniques to minimize your cost of doing business