Entrepreneurial Small Business Chapter 3

Task environment

A part of the external environment made up of those components that the firm deals directly with, such as customers, suppliers, consultants, media, interest groups and the like.

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.

Baldridge Award

The Malcom Baldridge National Quality Award is given by the US government to businesses 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. See www.qualtiy.nist.gov.

Bootstrapping

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

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.

ISO 14001 Certification

a certification awarded to organizations for creating and implementing as environmental management system that meets the requirements otf he International Standards Organization.

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 demographic sector.

Ethical dilemma

a situation which occurs when a person's values are in conflict, making it unclear whether a decision he or she is thinking about making is the right thing to do.

Ethics

a system of values that people use to determine whether actions are right or wrong.

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.

Universalism

an ethical model which believes there is a code of right and wrong that everyone can see and follow.

Billboard principle

an ethical model which posits if the person would be comfortable having their decision and name advertised on a billboard for the public to see.

Utilitarianism

an ethical model which seeks the greatest good for the greatest number of people.

Golden Rule

an ethical model which suggests you treat others in the manner you wish to be treated.

Social capital

characteristics of a business like trust, consistency, and networks, which represent potential social obligations which are an asset of the firm or entrepreneur.

Networking

interacting with others done to build relationships useful to the business.

Trade magazines

magazines that target a particular industry or profession.

ISO

stands for the International Standards Organization and refers to a certification for having met a standard of quality that is consistently evaluated around the world. See www.iso.org

Mutuality

the action of each person helping the other.

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.

Social network

the entrepreneur's set of relations and contacts with individuals and institutions.

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 all the forces outside the entrepreneur or his firm

Entrepreneurial ecosystem

a special configuration of the environment that reflects the components that are most central to the developing a strong active community of start-up businesses. The components are entrepreneurs, government, universities, investors, service people, mentors and larger organizations.