small business management ch3

billboard principle

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

baldridge 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

international standards organization

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

Legitamacy

-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

ISO 14001 certification

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

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

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.

BATNA

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

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.

networking

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

universalism

Suggests that there is a code of right and wrong that everyone can see and follow.

mutality

The action of each person helping another.

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

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

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

utilitarianism

supports seeking the greatest good for the greatest number of people

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, organizations and institutions outside of its boundary.

internal environment

the people and groups within the boundary of a firm (owners, managers, board members)