Intro to Entrepreneurship: Chapter 3
Caveat emptor
"Let the buyer beware" made into a philosophy used by businesses that puts the burden for consumer protection onto the consumer
Universalism
An ethical model that suggests that there is a code of right and wrong that everyone can see and follow
BATNA (Best Alternative To a Negotiated Settlement)
In which the second best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation
Networking
Interacting with others in order to build relationships useful to a business
Six strategies for handling a crisis
1. admit you're in trouble 2. get to the scene 3. communicate what you do and don't know to relevant parties 4. have one person serve as spokesperson 5. separate crisis management from everyday motivate 6. deal with crisis quickly
Green entrepreneurship
Another term for sustainable entrepreneurship
Ethics
A set of values that people consider in determining whether actions are right or wrong
Ethical dilemma
A situation when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do
Utilitarianism
An ethical model that supports seeking the greatest good for the greatest amount of people
External environment
Everything outside of the firm
Baldridge Award
Given to business and non-profits that have been judged outstanding in seven measures of quality leadership
Mututality
The action of each person helping each other
Legitimacy
The belief that a firm is worthy of consideration of doing business because of the opinions of customers, suppliers, investors, or competitors
Social network
The entrepreneur's set of relationships and contacts with individuals and institutions
Bootstrapping
Using low cost or free techniques
Organizational culture
A set of shared beliefs or common accepted ways of dealing with problems and challenges within a company that demonstrate how things get done
Environment
All the forces outside of the firm
Sustainable entrepreneurship
An approach to operating a firm or a line of business which makes a profit in a way that can minimize the depletion of natural resources, maximize the use of recycled material or improve the environment
Billboard principle
An ethical model that asks whether someone would be comfortable having his or her decision and name advertised on a billboard for the public to see
Golden Rule
An ethical model which suggests you treat others the way you would want to be treated
External relations strategies
Building legitimacy, developing a social network, handling a crisis, achieving sustainability, making ethical decisions
ISO (International Standards Organization)
Certification for having met a standard of quality that is consistently valued around the world
Social capital
Characteristics of a business, like trusts, consistency and networks that represent potential social obligations which are an asset of the firm or entrepreneur
Organizational identity
Part of the BRIE model; the name, description and distinctive elements of a firm such as stories, trademarks, etc.
General environment
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
Types of legitimacy
People based legitimacy, product based legitimacy, organization based legitimacy
Task environment
People your firm deal with every day like customers, suppliers, etc.
External relations
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
