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