MAN chapter 2

regulatory agencies

are created by the government to protect the public from certain business practices or to protect organizations from one another

regulators

are elements of the task environment that have the potential to control, legislate, or otherwise influence an organization's policies and practices.

suppliers

are organizations that provide resources for other organizations

competitors

are other organizations that compete with it for resources

managerial ethics

consists of the standards of behavior that guide individual managers in their work

board of directors

is a governing body that is elected by the stockholders and charged with overseeing a firm's general management to ensure that it is run to best serve the stockholders' interests.

quota

is a limit on the number or value of goods that can be traded. The quota amount is typically designed to ensure that domestic competitors will be able to maintain a certain market share.

tariff

is a tax collected on goods shipped across national boundaries. Tariffs can be collected by the exporting country, by countries through which goods pass, or by the importing country.

licensing

is an arrangement whereby a firm allows another company to use its brand name, trademark, technology, patent, copyright, or other assets.

while-blowing

is an employee's disclosure of illegal or unethical conduct by others within the organization.

importing

is bringing a good, service, or capital into the home country from abroad.

joint venture

is special type of strategic alliance in which the partners actually share ownership of a new enterprise.

philanthropic giving

is the awarding of funds or gifts to charities or other worthy causes.

legal compliance

is the extent to which the organization conforms to local, state, federal, and international laws. The task of managing legal compliance is generally assigned to the appropriate functional managers.

ethical compliance

is the extent to which the organization's members follow basic ethical (and legal) standards of behavior.

social responsibility

is the set of obligations an organization has to protect and enhance the societal context in which it functions.

direct investment

occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country.

owners

of a business are, of course, the people who have legal property rights to that business. Owners can be a single individual who establishes and runs a small business, partners who jointly own the business, individual investors who buy stock in a corporation, or other organizations.

economic dimension

of an organization's general environment is the overall health and vitality of the economic system in which the organization operates

political-legal dimension

of the general environment consists of government regulation of business and the relationship between business and government.

technological dimension

of the general environment is made up of the methods available for converting resources into products or services.

exporting

or making a product in the firm's domestic marketplace and selling it in another country, can involve both merchandise and services.

sarbanes-oxley act of 2002

requiring CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms' financial disclosures. The law also imposes tough new measures to deter and punish corporate and accounting fraud and corruption.

Strategic partners (allies)

two or more companies that work together in joint ventures or other partnerships

strategic alliance

two or more firms jointly cooperate for mutual gain

second dimension of the task environment is customers

whoever pays money to acquire an organizations products or service

code of ethics

written statements of values and ethical standards that guide the firms actions