Small Business Chapter 3

Five Managing Relations

-Building Legitimacy -Developing a social network -Handling a crisis -Achieving sustainability -Making ethical decisions

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

General 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

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, interest groups, and the like

Networking

Interacting with others in order to build relationships useful to a business.

Mutuality

The action of each person helping another.

External environment

The forces, institutions and people (i.e., the rest of the world) 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, organizations and institutions outside of its boundary.

Internal environment

The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

Environment

The sum total of forces outside of the entrepreneur and the firm.

Bootstrapping

Using low-cost or free techniques to minimize your cost of doing business

Ethics

a system of values that people consider in determining whether actions are right or wrong

Billboard principle

asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see.

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

Baldrige Award

given by the U.S. government to businesses and nonprofit organizations that have been judged outstanding in seven measures of quality leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results

ISO (International Standards Organization)

refers to certification for having met a standard of quality that is consistently evaluated around the world

Golden Rule

suggests you treat others in the manner you wish to be treated

Utilitarianism

supports seeking the greatest good for the greatest number of people

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, logos, characters and stories -part of the BRIE model

Sustainable entrepreneurship

-identifies or creates and 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, or any combination of these outcomes -Green entrepreneurship

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 -Based on people, product, or organization

Social network

-the entrepreneur's set of relationships and contacts with individuals and institutions -way to work trust, reciprocity, and long-term relationships into your day-to-day business operations.

Caveat emptor

A Latin expression which means "let the buyer beware" which has been made into a philosophy sometimes used by businesses to put the burden for consumer protection onto the customer

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.