managing external relations

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.

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 environment, 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.

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.

ethical dilemma

a situation that occurs when a person's value are in conflict, making it unclear whether a particular decision is the right thing to do.

ethics

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

BATNA

an acronym for "best alternative to a negotiated settlement" in which the second-best outcome is identified by the parties

sustainable entrepreneurship

an approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.

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.

universalism

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

utilitarianism

an ethical model that supports seeking 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.

green entrepreneurship

another term for sustainable entrepreneurship taken from the popular belief that green is the color of a healthy environment, as in forests or fields.

social capital

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

networking

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

organizational identity

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

ISO

stands for the international standards organization, and refers to certification for having met a standard of quality that is consistently evaluated around the world.

mutuality

the action of each person helping another.

legitimacy

the belief that s 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 relationship and contracts with individuals and institutions.

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 the firm's interactions with people, organizations, and institutions outside of its boundary.

trade magazines

the magazine that target specific industries and professions.

internal environment

the people and groups within the boundary of a firm, including the owners, managers, employees and board member 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.