Entrepreneurial Small Business 5th Edition; Chapter 3

BATNA

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

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.

Netwroking

Interacting with others in order to build relationships useful to a business.

Mutuality

The action of each person helping another.

Bootstrapping

Using low-cost or free techniques to minimizing your cost of doing business.

Caveat Emptor

A Latin expression that means "let the buyer beware", which has been made into a philosophy sometimes used by businesses to put the burden for consumers protection into the customer.

Ethical Dilemma

A situation that occurs when a person's 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.

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.

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, and the like.

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, mentor, and large organizations.

Universalism

An ethical model that suggests that there is a code of right and wrong that everyone can see and follow.

Golden Rule

An ethical model that suggests you treat others in the manner you wish to be treated.

Utilitarianism

An ethical model that supports seeking the greatest good for the greatest number of people.

Social Capital

Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneurs.

Organizational Identity

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

ISO

Stands for the International Standards Organization, and refers to certification for having met a standard of quality that is consistently evaluated around the world.

Baldrige Award

The Malcolm Baldrige National Quality Award is given by the U.S. government 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.

Legitimacy

The beliefs that 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.

External Envirnoment

The forces, institutions, and people (i.e., the rest of the world) outside the boundary of the firm.

External Relations

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

Trade Magazines

The magazines that target specific industries and professions.

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 all the forces outside the firm or entrepreneurs.