MGMT 470: Ch. 3 - Small Business Environment: Managing External Relations
These are less damaging costs & get MORE executive attention Level ____ Costs
1
There are ____ levels of Business Costs of Ethical Failures.
3
These are more damaging costs, get LESS executive attention Level _____ Costs
3
"Best Alternative to a Negotiated Settlement" An acronym in which the second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation
BATNA
The key to identifying resources comes from Six Types of Resources = (_________)
PROFIT
(6) Steps to Handling a Crisis: 1. ______ you're in trouble - quickly 2. Get to the _____ as soon as possible 3. _______ facts you know to employees, customers, and suppliers 4. Have one person serve as the firm's ______ 5. ______ crisis management from the everyday management of the firm 6. Deal with the crisis ______
admit, scene, communicate, spokesperson, separate, quickly
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
billboard principle
Using low-cost or free techniques to minimize your cost of doing business
bootstrapping
Another approach to building organization-based legitimacy is the creation and display of a company _________ ____ _________.
code of ethics
(5) Approaches to Minimize the Need for High-Pressure Ethical Decision-Making Situations: 1. Craft ______ for legitimacy, social networking, sustainability, crisis mgmt., ethical decision making 2. When hiring, discuss with them your ________ 3. Use external relations lapses as _____ ______ 4. Use specific approaches when counseling around _____ _____ issues 5. Remember you are the _____ _____!
codes, expectations, learning experiences, external relations, role model
(3) Steps to Making Ethical Decisions: Step 1: _________ the moral problem
define
(3) Steps to Making Ethical Decisions: (LaRue Hosmer Model): 1. _______ 2. _______ 3. _______
define, generate, implement
(7) Sectors of the General Environment: The ________ Sector trends in the mix of ages, races, and gender in society
demographic
(7) Sectors of the General Environment: The ________ Sector - trends & current conditions of the overall market for goods and services - the availability of equity and credit, & employment
economic
(7) Sectors of the General Environment: 1. The _______ Sector 2. The _______ Sector 3. The _______ Sector 4. The _______ Sector 5. The _______ Sector 6. The _______ Sector 7. The _______ Sector
economic, technological, sociocultural, ecosystem/infrastructure, demographic, political-legal, international
The Organization's Environment: The _____ Environment The forces, institutions, and people (ie., the rest of the world) outside the boundary of the firm
external
The general description of the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary
external relations
Organizational Identity: Includes ____________ Elements: registration with the state, website, phone number
formal
Organizational identity includes __________ & _________ elements.
formal & informal
The Organization's Environment: The _____ 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
general
(3) Steps to Making Ethical Decisions: Step 3: Pick the best alternative you and your business can live and ________ it
implement
Organizational Identity: Includes ____________ Elements: track record for performance, that performance, along with the goods or services it creates become key elements of the firm's and entrepreneur's identity
informal
Entrepreneur gathers resources from the environment: - ______ on how to do the business or whom to sell to - ______ to run the business - ______ for the business - ______ ______ for the business to use to make goods or deliver services
information, funding, space, raw materials
The Organization's Environment: The _____ Environment Ex: Employees, Owners, BOD
internal
The Organization's Environment: The _____ Environment The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm - Adds to org's culture a set of shared beliefs
internal
(3) Rings of an Org's Environment (Smallest to Largest): 1. The ______ Environment 2. The ______ Environment 3. The ______ Environment
internal, task, general
"Step 4" of the Ethical Decision Making Model for Small Businesses = __________
monitoring
The action of each person helping another
mutuality
Def #2) _________ (______) __________ Exploits opportunities to make a profit that: 1. Minimizes the depletion of ______ ______ 2. Maximizes the use of ______ ______ 3. Improve the ________
natural resources, recycled material, environment
Interacting with others in order to build relationships useful to a business
networking
Ex of legitimacy based on ________: media organization visibility, history, hours of operation
organization
A key element of its organizational identity is its ________ ______.
organizational culture
Part of the BRIE model; composed of the name, description, and distinctive elements of the firm, such as trademarks, uniforms, logos, characters, and stories
organizational identity
Setting up a boundary within that environment gives the firm an ________ ________.
organizational identity
______ ________ means what it does and where it does this
organizational identity
The _______ IS the business and the most important element of social capital.
owner
The entrepreneur's set of relationships and contacts with individuals and institutions
social network
_________ _________ is a way to work trust, reciprocity, and long-term relationships into your day-to-day business operations
social networking
(7) Sectors of the General Environment: The ________ Sector cultures often based on factors such as nationality or religion, nationality or religion, subcultures
sociocultural
The Government's (3) Step Process for Preparing for Disasters for Small Businesses: 1. Plan to ______ ___ ______ 2. Talk to your ______ 3. Protect your ______
stay in business, people, investment
An approach to the operation of the firm, the line of business of the firm, or both
sustainable (green) entrepreneurship
The Organization's Environment: The _____ Environment A part of the external environment is made of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups The components that directly relate to your firm performing its basic business tasks
task
The Organization's Environment: The _____ Environment Ex: customer, competitors, suppliers, media, interest groups, distributors, accountants/lawyers
task
The External Environment is made up of: 1. The _________ Environment & 2. The _________ Environment
task, general
(7) Sectors of the General Environment: The ________ Sector innovation, invention, & modernization
technological
(4) Philosophies for Thinking Through Alternatives to Help You Determine How Ethical the Choices Are: 1. Am I treating others ________________? 2. Is my solution the best thing for the ______ _______ over the long term? 3. What if _______ did what I want to do? 4. What if my decision were advertised on a _______?
the way I want to be treated, most people, everyone, billboard
The magazines that target specific industries and professions
trade magazines
(4) Best Practices for Online Social Networking: 1. Make it easy for people to ______ _____ 2. Take the initiative to ask others to _____ ____ ____ & then help them too 3. Find & link up with _____ _____ 4. ______ ____ ____ - Consistent Involvement!
contact you, link with you, network mavens, keep at it
(3) Areas Where This is Particularly Important: 1. Handling a _______ 2. Achieving _______ 3. Making _______ _______
crisis, sustainability, ethical decisions
The _______ is all of the forces outside the firm or the entrepreneur.
environment
The sum of all the forces outside the firm or entrepreneur
environment
An _______ _______: 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
ethical dilemma
A system of value that people consider in determining whether actions are right or wrong
ethics
An ethical model that suggests you treats others in the manner you wish to be treated
golden rule
Ex of legitimacy based on ________: goodwill, public recognition, uniforms, product/service name recognition
people
(7) Sectors of the General Environment: The ________ Sector reflects the broad trends affecting law, government, and politics, new legal and political initiatives
political-legal
Ex of legitimacy based on ________: customer assurance, certifications, testimonials
product
(6) Types of Resources: (PROFIT) 1. __________ 2. __________ 3. __________ 4. __________ 5. __________ 6. __________
property/physical, relational, organizational, financial, intellectual/human, technological
Def #2) ______ _______: Includes characteristics of a business, like trust, consistency, and networks, that help make business operations smooth and efficient
social capital
The goal of any small business owner is to manage external relations in order to create _______ _______.
social capital
_______ _______ of time about some decisions and situations can help you prepare yourself, and your from, for the future.
thinking ahead
Prof's Saying: ________ & ________ !
execution & leadership
- Gaining _______ is one of the top challenges facing new small businesses - Achieving ________ is a major goal of all new businesses
legitimacy
An ethical model that suggests that there is a code of right and wrong that everyone can see and follow
universalism
An ethical model that supports seeking the greatest good for the greatest number of people
utilitarianism
(3) Classes of Codes of Ethics: 1. ______ Should Be Dependable Organizational Citizens 2. Do Not Do Anything That Will ______ ____ _______ 3. Be Good to ______
Employees, harm the organization, customers
The Organization's Environment: The _____ Environment Ex: Economic Sector, Tech. Sector, Sociocultural Sector, Ecosys. Sector, Demographic Sector, Polit-Legal Sector, International Sector
General
(7) Sectors of the General Environment: The ________ Sector This reflects the physical world in which we live - Natural Components: raw materials, weather, infrastructure
ecosystem/infrastructure
When counseling around external relations issues, use these approaches: 1. Don't get _____ 2. _____ _____ about what the problem is & why it's an issue 3. Focus on what ______ _____ should be & why 4. Be ______
emotional, be specific, future behavior, consistent
The _________ _________: A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses
entrepreneurial ecosystem
(7) Components of the Entrepreneurial Ecosystem: 1. _________ 2. _________ 3. _________ 4. _________ 5. _________ _________ 6. _________ 7. _________ _________
entrepreneurs, government, universities, investors, service people, mentors, large organizations
(3) Steps to Making Ethical Decisions: Step 2: _________ alternatives that could meet the ethical, legal, and economic goals every business must balance
generate
(4) Philosophies for Thinking Through Alternatives to Help You Determine How Ethical the Choices Are: 1. The ________ ________ 2. ________ 3. ________ 4. The ________ ________
golden rule, utilitarianism, universalism, billboard principle
Def #2) _______: Means building trust among customers and other key groups
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
legitimacy
(2) Approaches to Managing Relations with the Environment: 1. Building _________ 2. Developing your _________
legitimacy, network
(5) Skills for Managing Relations with the Environment: (External Relations) 1. Building ________ 2. Developing a ________ ________ 3. Handling a ________ 4. Achieving ________ 5. Making ________ decisions
legitimacy, social network, crisis, sustainability, ethical
Caveat Emptor: " ______ ___ ______ _____"
let the buyer beware
(3) Levels of Business Costs of Ethical Failures: government fines & penalties
level 1 costs
(3) Levels of Business Costs of Ethical Failures: - administrative & audit - legal & investigative - corrective actions
level 2 costs
(3) Levels of Business Costs of Ethical Failures: - customer defections - loss of reputation - employee turnover
level 3 costs
(3) Forms of Legitimacy: 1. Based on ________ 2. Based on ________ 3. Based on your ________
people, product, organization
Your ________ ________ are people you encounter in your everyday life, while your ________ ________ are people you know online.
personal, social
(6) PROFIT Resources: customers, networks, distributors, social capital
relational
Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur
social capital