Entrepreneur Chapter 3

External Environment

-The forces, institutions and peaple(i.e., the rest of the world) outside the boundary of the firm -External environment can be further divided into the general environment and the task environment

Entrepreneurial ecosystem

-a specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses -the components are entrepreneurs, government, universities, investors, service people, mentors, and large organizations

5 Skills for managing relations with the environment

-building legitimacy -developing a social network -handling a crisis -achieving sustainability -making ethical decisions

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 of total forces outside of the entrepreneur and the firm

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

Ethical Dilemma

a situation occurs when a persons values are in conflict, making it unclear whether a particular decision is the right thing to do

Ethics

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

BATNA

an acronym for "Best Alternative to a Negotiated Settlement" in which a second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation

Billboard Principle

asks 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, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur

Networking

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

ISO(International Standards Organization)

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

Golden Rule

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

Universalism

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

utilitarianism

supports seeking the greater good for the greatest number of people

Mutuality

the action of each person helping another

External relations

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

Baldrige Award

-given by the U.S. government to businesses and nonprofit organizations on seven measures of quality leadership; strategic planning; customer and market focus; measurement; analysis, and knowledge management; Human resource focus; process management; and results -http://www.quality.nist.gov

ISO 14001 certification

A certification awarded to organizations for creating and implementing an environmental management system that meets the requirement of the International Standards Organization.

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, and the like.

Sustainable Entrepreneurship

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

Developing a Social Network

-make it easy for people to contact you -take the initiative to ask others on the network to link with you -find and link up with network mavens -Keep at it-- successful online networking requires consistent involvement

Legitimacy

-the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors -based on people, product, or organization

Social Network

-the entrepreneurs 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

Handling a Crisis

1. Admit you're in trouble - quickly 2. Get to the scene as soon as possible 3. Communicate facts you know 4. Have one person serve as the firm's spokesperson 5. Separate crisis management from the everyday management of the firm 6. Deal with the crisis quickly