review set #1
Describe how general systems theory can be applied to a business?
- organisms are open to, and interact with, their external environments. -botany: can't explain it without referencing soil, light, and oxygen. -can be applied to business because it needs all parts to be successful -Holiday Hair needs a boss, barbers, clippers, and hair products or it would not be a successful business.
Discuss why a manager should or should not be considered a stakeholder.
Yes because... - directly impacted by a firms decisions - their compensation, more than a regular employees as expected - their managerial roles provide opportunities for professional advancement, social status, and power.
Describe and give examples of the external forces that shape the relationship between business and society.
-"explosion of new technology and innovation" tech moves so fast it is hard to keep up with and its a big part of todays world. iPhone example. -"changing societal expectations" everyone expects businesses to change quickly and be responsible with social issues. Example is dealing with world hunger
Supporters of the stakeholder theory of the firm make 3 core arguments for their position. Define and provide examples for each.
-descriptive: view is more realistic on how companies really work. Example is Wall Street. Managers must pay close attention to their quarterly and annual financial performance. -instrumental: stakeholder management is more effective as a corporate strategy. Example is Mike Trout doing a Subway commercial. He not only is making money but he's also advertising Subway. -normative: simply the right thing to do. Example is when skilled microsoft worker who solves a difficult programming problem. They have a moral right to some claim on the corporations rewards.
What is a stakeholder map? Why is it a useful tool?
-it is a graphical representation of the relationship of stakeholder salience to a particular issue. -vertical= salience of stakeholder horizontal= "for" or "against" -this is useful because it shows the position of various stakeholders on an issue.
Compare and contrast the relationships a firm might have with a market and non-market stakeholder.
-market: based on unique transaction and 2 way exchange. Stockholders invest in firm and in return may receive capital gains. Employees contribute their skills and knowledge in return for wages. -non-market: people and groups who -- although they do not engage in direct economic exchange with the firm -- are effected by its actions. Include the community, various levels of govt, media, competitors and the general public.
Explain the process called stakeholder analysis. Include a description of its 4 key questions.
Definition: An important part of the managers job to identify relevant stakeholders and understand both their interests and the power they have to assert these interests. - question 1 "What are the interests of each stakeholder" Stakeholders have a unique relationship to the organization and managers must respond accordingly. -question 2 "What is the power of each stakeholder" using stakeholder power to make an event happen to secure a desired outcome. -question 3 "How are the coalitions likely to form" when interests are similar, stakeholders may form an alliance to pursue a common interest. -question 4 "Who are the relevant stakeholders" Identify and understand their interest, power, and legitimacy.