Module 1 - Stocks, Entrepreneurship, Business Models, Strategy, Structure, Professionalism, Individual Behavior, Motivation, Leadership, Management

Business Model vs Competitive Strategy

A business model focuses on how a business runs and creates value, while a competitive strategy focuses on how a business outperforms rivals

Small Business

A business where an individual works for themselves and generates steady income

Marlow Case

A case study highlighting the importance of intrinsic and extrinsic rewards, accurate attributions, and perspective-taking in leadership

Premium Product

A high-quality product with a higher price point

T-Shaped Professional

A professional with better communication and collaboration skills, flexibility, and a combination of hard and soft skills

Entrepreneurial Venture

A scalable business model with innovation, growth orientation, risk, and funding

Value Stocks

Cheap stocks that are expected to rebound

Decentralization

Decision-making authority is distributed throughout the organization

Centralization

Decision-making authority lies with top management

Differentiation

Delivering distinctive value by doing different things

Extrinsic Rewards

External rewards such as raises, bonuses, and promotions

PESTEL

Factors that affect companies, including political, economic, social, technological, environmental, and legal factors

Intrinsic Rewards

Internal rewards such as satisfaction and a sense of accomplishment

Blue Chip Stocks

Large, well-known stocks that pay dividends

Behaviors/Styles

Leadership behaviors and styles, including maintenance needs, task needs, and change-oriented behaviors

Attributes/Traits

Personality traits that are linked to leadership effectiveness

Stock Indices

S&P 500, NASDAQ, and Dow Jones are examples of stock indices that represent different groups of companies

Hard Skills

Teachable skills or job-specific abilities that can be quantified or measured

Departmentalization

The basis on which jobs are grouped together into units

Expectancy

The belief that effort will lead to success

Business Model Format

The format used to present a business model

Attribution Errors

The fundamental attribution error and self-serving bias in attributing causes to behavior

Stock Market Hours

The hours during which the stock market is open (9:30 AM - 4 PM)

Span of Control

The number of individuals a manager can effectively direct

Color Scheme

The specific colors used in a product's design

Valence

The value placed on the rewards

Empowering Approach

A leadership approach that saves time, develops subordinates, demonstrates confidence, increases commitment and morale, and enhances managerial influence

Situation Leadership (SLII)

A leadership model that matches leadership style to the developmental stage of the follower

Budget Product

A lower-priced product with basic features

Side Hustle

A part-time occupation in addition to a main job

Shibumi Shade

A successful product actively advertised with a unique look, excellent customer service, and sold to a specific demographic

Business Model Canvas

A tool used to design new businesses, provide strategic planning, and understand competition

Leadership Effectiveness

Achieving objective performance metrics, helping team members improve skills, and creating a positive work environment

Comm 1800 Exam

An example of motivation based on expectancy theory, where studying is expected to lead to good performance and desired outcomes

Soft Skills

An individual's social ability and how they relate to and interact with other people

Matrix Organizational Structure

An organizational structure that allows for more customer flexibility and flexibility in general

Divisional Organizational Structure

An organizational structure that groups employees based on divisions, leading to better coordination and customer orientation

Functional Organizational Structure

An organizational structure that groups employees based on their specialized functions

Mid-Cap Companies

Companies with a market capitalization between $2 billion and $10 billion

Small-Cap Companies

Companies with a market capitalization between $300 million and $2 billion

Large-Cap Companies

Companies with a market capitalization of $10 billion or more

Escalation of Commitment

Continuing to invest in a poor course of action due to factors like avoiding loss and embarrassment

Operational Effectiveness

Doing the same things better than competitors

Cost Leadership

Driving down costs by doing things differently

Motivation

Forces within a person that affect the intensity, direction, and persistence of voluntary behavior

Sources of Power

Formal and informal sources of power, including legitimate power, coercive power, reward power, expert power, referent power, and informational power

Focused on Growth

Having a strategy that allows for development and expansion

Ramen Profitable

Having enough money to cover basic expenses

Angel Investors

Investors who provide resources to startups in exchange for equity

Extrinsic Motivation

Motivation that comes from external rewards, such as raises and promotions

Intrinsic Motivation

Motivation that comes from within, such as satisfaction and a sense of duty

Effective Goal Setting

Setting specific, challenging, achievable, accepted, and fair goals

Income Stocks

Stocks that consistently pay dividends

Growth Stocks

Stocks with earnings that grow at a faster rate

Leadership

The ability to influence and guide others towards a common goal

Instrumentality

The belief that performance will lead to rewards

Context/Situation

The context or situation in which leadership occurs and which behaviors/styles are most effective

Specialization

The degree to which tasks and activities are subdivided into separate jobs

Formalization

The degree to which there are rules and regulations in an organization

Chain of Command

The individuals and work groups to whom others report

Managing Up

The interdependent relationship between a boss and a subordinate, where mutual dependence and understanding are important

Goal Setting

The process of setting objectives to achieve desired performance outcomes

Cognitive Misers

The tendency for people to use mental shortcuts in making judgments and drawing inferences

Confirmation Bias

The tendency to seek out or pay attention to information that confirms our decisions, beliefs, values, and assumptions

Expectancy Theory of Motivation

The theory that motivation is based on the belief that effort leads to performance, performance leads to rewards, and rewards are valued

Market Capitalization

The total market value of all outstanding shares of a company

Business Model

The unique configuration of elements through which a company creates and captures value