Hofstede’s Power Distance, Different Strategies for Expanding, and What is an Entrepreneur?

SWOT Analysis

Analysis of external and internal factors relevant to an organization's management

Dispersed Authority

Authority distributed throughout the organization in a low power distance setting

Buyer Power (Porter's Five Forces)

Balance of power between a firm and its customers

Supplier Power (Porter's Five Forces)

Balance of power between firms and their suppliers in an industry

Star (BCG Matrix)

Business unit with high market growth and high market share, requires investment to maintain growth

Question Mark (BCG Matrix)

Business unit with high market growth but low market share, requires investment decision

Cash Cow (BCG Matrix)

Business unit with low market growth and high market share, generates revenue

Dog (BCG Matrix)

Business unit with low market share and low market growth, should be divested

Culture Change

Change in common patterns of thinking and behaving within an organization

Structural Change

Change in formal relationships within an organization

New Entrants (Porter's Five Forces)

Companies or firms from another industry entering a new industry

Industry Rivalry (Porter's Five Forces)

Competition between firms in an industry for customers, supplier relationships, and defense against new entrants

Managerial Authority

Concentration of authority at the top in a high power distance setting

Firm Vision and Mission

Concise description of what an organization does and how it plans to achieve its goals

Strategies

Courses of action to achieve objectives

Consultative Decision Making

Decision making process that involves seeking input from subordinates in a low power distance setting

Power Distance

Degree of centralized authority and hierarchical structure in an organization

Business Plan

Document outlining vision, mission, product/service plan, marketing plan, management plan, operating plan, financial plan

Performance Measurement

Evaluating the effectiveness of implemented strategies

Elements of a Business Plan

Executive summary, vision and mission statement, company overview, product/service plan, marketing plan, management plan, operating plan, financial plan, appendix of supporting documents

Macro Task Environment

External factors affecting a business, such as technology, laws, demographics, environment, sociocultural trends, government, economy, globalization

Micro Task Environment

Factors within a business's immediate surroundings, such as customers, competitors, supplies, intermediates

Internal Task Environment

Factors within a business, such as owners, managers, employees

Organic Organizational Structure

Flexible, decentralized structure with low/broad specialization

Mechanistic Organizational Structure

Formalized, standardized, centralized structure with high/narrow specialization

Debt Financing

Funding a business through borrowing money

Equity Financing

Funding a business through selling ownership shares

Checklist to Become an Entrepreneur

Identify reasons, self-analysis, personal skills, finding a niche, market research, business plan, finances

Technological Change

Implementation of new technologies forcing environmental change within the business climate

Domestic Expansion Strategy

Making local adaptations for different regions to fit local preferences

Authoritative Managerial Style

Managerial style characterized by reliance on formal rules and autocratic decision making

International Expansion Strategy

Managing all operations the same worldwide, potentially disregarding local preferences

Low Salary Gap

Minimal difference in salary between top and bottom positions in an organization

John Kotter Change Model

Model for managing change that involves creating urgency, forming a guiding coalition, developing a vision and strategy, communicating the change vision, empowering broad-based action, generating short-term wins, consolidating gains, anchoring new approaches

Kurt Lewin Change Model

Model for managing change that involves unfreezing, changing, and refreezing

Christianity

Most common religion in the world, followed by 31.2% of the population

Decentralized Structure

Organizational structure with dispersed authority and more consultative decision making

Centralized Structure

Organizational structure with tall hierarchies and clear levels of managers and subordinates

Angel Investor

Person who financially supports a small or new business

Strategic Analysis

Process of evaluating internal and external factors to identify opportunities and threats

Substitutes (Porter's Five Forces)

Products or services that can satisfy the same need as an industry's offerings

Implementation

Putting strategies into action

Judaism

Religion least common in the world, followed by 0.2% of the population

Wide Salary Gap

Significant difference in salary between top and bottom positions in an organization

Entrepreneur

Someone who starts and manages a business, taking risks to make a profit

Objectives

Specific goals to be achieved in the strategic planning process

Strategic Management Process

Steps to develop and implement strategies in an organization

BCG Matrix

Tool for evaluating business units based on market share and growth rate

Porter's Five Forces

Tool for examining micro-environmental groups and their impact on a firm in an industry