MGT 302 Chapter 3

Internal environment

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

Ethics

A system of values that people consider in determining whether 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 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

Universalism

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

Social Capital

Characteristics of a business, like trusts, consistency, and networks, the 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 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 Malcom 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

Mutuality

The action of each person helping another

External Environment

The forces, institutions and people outside the boundary of the firm

Bootstrapping

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

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

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 particular decision is the right thing to do

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 value of achieving a successful negotiation

Utilitarianism

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

Golden Rule

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

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

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

Social Network

The entrepreneur's set of relationships and contacts with individuals and institutions

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 boundaries

Trade Magazines

The magazines that target specific industries and professions

Environment

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