MGT 302 Ch. 3 Study Guide
Caveat emptor
"let the buyer beware" put the burden for consumer protection onto the customer
5 Skills for Managing Relations with the Environment
1) Building legitimacy 2) Developing a social network 3) Handling Crisis 4) Achieving sustainability 5) making ethical decisions
Steps to Handling a Crisis
1) admit you're in trouble 2) get to the scene ASAP 3) communicate facts you know 4) have one person serve as the firms' spokesperson 5) seperate crisis management from everyday mangement 6) deal with crisis quickly
Ethical Decision Making Model
1) define the moral problem 2) generate alternatives that meet your ethical, legal and economic, goals 3) implement the best solution and monitor the situation
3 Classes of Ethical Standards
1) employees should be dependable organizational citizens 2) do not do anything that will harm the org. 3) be good to customers
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 etc. it is hard to see changes because you deal with them everyday
ethical dilemma
a situation that occurs when a person's values are in conflict, making it unclear whether a decision is the right thing to do.
When asking for help:
ask people you can trust, ask for specific behavior, don't be defensive, don't overreact and underreact, summarize, explain the feedback, thank them and follow through
Malcom Baldrige Award
given by the U.S government to businesses and nonprofit orgs that have been judged outstanding.
Networking Skills
know who you are, know what you want and why, buddy up, bone up on the small talk, don't forget why you're there, make the connections, follow up
ISO International Standards Organization
refers to certification for having met a standard of quality that is evaluated around the world
political-legal sector
reflects broad trends affecting law, government, and politics including changes in parties, players, new legal and policy initiatives.
ecosystem/infrastructure sector
reflects the physical world in which we live. natural components like raw materials, weather, ecological forces, changes are unpredictable.
Social Network
the entepreneur's set of relationships and contacts with individuals and institutions this is like family, friends, kids, bank, customer contacts, school, hobbies, businesses, other orgs, work, small business orgs and electronic networks
economic sector
trends and current conditions of the overall market for goods and services, employment, availability of equity and credit
demographic sector
trends in the mix of ages, races, and gender in society.
technological sector
innovation, invention, and modernization.
networking
interacting with others in order to build relationships useful to a business
Golden Rule
suggests you treat others in the manner you wish to be treated
universalism
there is a code of right and wrong that everyone can see and follow
Organizational identity
composed of the name, description, and distinctive elements of a firm such as trademarks, uniforms, logo, characters, and stories
Sustainable entrepreneurship
creates then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment. also known as green entrepreneurship
Environment
the sum total of forces outside of the entrepreneur and the firm
Low Cost Methods To Scan The Environment
1) look for trends in the trade press of your industry 2) ask your customers and suppliers what they see on the horizon 3) keep notes on how work has changes 4) subscribe to blogs outside your area of business
billboard principle
asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see
BATNA
best alternative to a negotiated settlement, the second best outcome is identified by the parties in a negotiation to help clarify value.
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. it is based on people, product or organizations
External Environment
the forces, institutions and people outside the boundary of the firm
External relations
the general description for the processes and skills used in the management of a firm's interactions with people, orgs out side of its boundary
Internal environment
the people within the boundary of a firm including managers, owners employees and board members
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
Ethics
a system of values that people consider in determining whether actions are right or wrong
Social Capital
characteristics of a business, like trust, consistency and networks, that represent potential social obligations which are an asset of the firm or entrepreneur
sociocultural sector
culture based off of nationality or religion and subcultures that are based around shared interests within a larger culture
General Environment
external environment made up of sectors of major forces that shape the people and institutions of the task and internal env, such as economic sector or demographics
Utilitarianism
supports seeking the greatest good for the greatest number of people
Mutuality
the action of each person helping each other
Bootstrapping
using low cost or free techniques to minimize your cost of doing business