Chapter 3: Managing External Relations
environmental scanning
- trend in the trade press of your industry - ask your customers and suppliers what they see on the horizon - keep notes on how work has changed - subscribe to blogs outside your area of business
Five skills for managing relations with the environment
1. building legitimacy 2. developing a social network 3. handling a crisis 4. achieving sustainability 5. making ethical decisions
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 environments, 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
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 values are in conflict, making it unclear whether a decision is the right thing to do
ethics
a system of values that people consider in determining whether actions are right or wrong
billboard principle
ask whether someone would be comfortable having his decision and name advertised on a billboard for the public to see
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
organizational identity
composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories, part of the BRIE model
Baldrige Award
given by the US govt 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
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
networking
interacting with others in order to build relationships useful to a business
International Standards Organization
refers to certification for having met a standard of quality that is consistently evaluated around the world
golden rule
suggests you treat others in the manner you wish to be treated
utilitarianism
supports seeking the greatest good for the greatest number of people
mutuality
the action of each person helping another
legitmacy
the belief thhat 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 relationships and contacts with individuals and institutions way to work trust, reciprocity, and long-term relationships into your day-to-day business operations
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, including the owners, managers, employees, and board members of the firm
environment
the sum total of forces outside of the entrepreneur and the firm
universalism
there is a code of right and wrong that everyone can see and follow
bootstrapping
using low-cost or free techniques to minimize your cost of doing business
