MGT 302 ch 3

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

Golden Rule

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

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. Making ethical decisions involve three steps: Define, Generate, Implement

Crisis

A situation that poses a major problem for the business or its people, in which the survival of the business is at stake, and immediate action is necessary.

Ethics

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

Sustainable entrepreneurship

An approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment

Billboard principal

An ethical model that asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see

Universalism

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

Utilitarianism

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

BATNA

And 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 value of achieving a successful negotiation

Code of Ethics

Another approach to building organization-based legitimacy, it reflects the passions of the founder, the culture of the firm, and three classes of ethical standards

Green entrepreneurship

Another term for sustainable entrepreneurship taken from the popular belief that green is the color of a healthy environment, as in forests or fields

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.

Networking

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

Organizational culture

Part of the internal environment, it is 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. Being a small business, there is a lot of flexibility in terms of roles and expected behaviors, especially when the business is first getting started.

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

Organizational identity

The Boundary, the B in the BRIE model, created within the environment. It is composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters, and stories.

Baldridge 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

Legitimacy

The belief, or trust, that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors. Three general forms are:

Social network

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

External environment

The forces, institutions and people outside the boundary of the firm. The two parts are: Task environment and General environment

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.

Mutuality

The idea and action of each person helping the other. Part of building social capital with social networking comes from the help people in the network can provide one another.

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 total of forces outside of the entrepreneur and the firm. The environment is usually the source of Inspiration, the I in the BRIE model. It is at the core of exchange in the BRIE model, since exchange is literally the firm or entrepreneur dealing with the environment - buying, selling, or trading across the boundary of the firm.

Bootstrapping

Using low-cost or free techniques to minimize the cost of needed resources from the environment, thereby reducing the cost of doing business