Small Business Management Smart Book 3

real options approach

"real options" approach An idea in entrepreneurship popularized by Rita Gunther McGrath and Ian Macmillan that suggests thinking of entrepreneurial opportunities (like start-ups) in terms similar to buying a stock option, putting a small amount of money down now to let you invest more at favorable rates later. This approach minimizes the amount you can lose and gives you a chance to make a decision later, based on the start-up's track record and prospects.

ISO

ISO Stands for the International Organization for Standardization, and refers to certification for having met a standard of quality that is consistently evaluated around the world

billboard princliple

billboard principle 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.

environment

environment The sum of all the forces outside the firm or entrepreneur.

ethics

ethics A system of values that people consider in determining whether actions are right or wrong.

green entrepreneurship

green entrepreneurship same as sustainable entrepreneurship

mutuality

mutuality The action of each person helping another.

social network

social network people you know online

sustainabltiy

sustainability The extent to which a practice, product or service has benefit for people, to the planet and its ecology and to the economy and the creation of profits or wealth.

sustainable entrepreneurship

sustainable entrepreneurship approach to the operation of the firm, line of business of the firm which identifies, creates, then exploits opportunities to make a profit in a way that does not deplete resources.

BATNA

BATNA An acronym for Best Alternative to a Negotiated Agreement in which the second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation.

Baldrige Award

Baldrige Award The Malcolm Baldrige National Quality Award is 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

golden rule

Golden Rule An ethical model that suggests you treat others in the manner you wish to be treated.

ISO 14001 certification

ISO 14001 certification A certification awarded to organizations for creating and implementing an environmental management system that meets the requirement of the International Organization for Standardization.

board of directors

board of directors A formal group within a company that is legally responsible for the decisions and actions of the company. The directors sit above the president or chief executive officer of the company.

caveat emotor

caveat emptor A Latin expression that 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.

customer relationship management

customer relationship management (CRM) The process of tracking the customer's different contacts with the firm, and using these data to help improve sales as well as the customer's experience.

entrepreneurial ecosystem

entrepreneurial ecosystem 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. The components are entrepreneurs, government, universities, investors, service people, mentors, and large organizations.

ethical dilemma

ethical dilemma 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.

External Environment

external environment The forces, institutions, and people (i.e., the rest of the world) outside the boundary of the firm.

external relations

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.

general environment

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.

internal environment

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

legitimacy

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.

networking

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

organizational culture

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.

organizational identity

organizational identity Part of the BRIE model; composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters, and stories.

personal network

personal network people you encounter in your daily life, family, friends, classmates, workmates

social captial

social capital Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur.

Task Environment

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.

trade magazines

trade magazines The magazines that target specific industries and professions.

triple bottom line

triple bottom line A concept in business and accounting which makes the point that organizations should measure not only their financial Impact (i.e., profit) but also their human and community development (i.e., people), and their impact on the physical environment in terms of what they take in from and put back into the environment

universalism

universalism An ethical model that suggests that there is a code of right and wrong that everyone can see and follow.

Utilitarianism

utilitarianism An ethical model that supports seeking the greatest good for the greatest number of people.