MGMT Week 2

Steps for A plan to create a sustainable future

1. Eliminate the concept of waste. Seek newer methods of production and recycling. 2. Restore accountability. Encourage consumer involvement in making companies accountable. 3. Make prices reflect costs. Reconstruct the system to incorporate a "green fee" where taxes are added to energy, raw materials, and services to encourage conservation. 4. Promote diversity. Continue researching the needed compatibility of our ever-evolving products and inventions. 5. Make conservation profitable. Rather than demanding "low prices" to encourage produc-tion shortcuts, allow new costs for environmental stewardship. 6. Insist on accountability of nations. Develop a plan for every trading nation of sustainable development enforced by tariffs.30

elements of benefit corporation

1. Purpose: to create a material positive impact on society and the environment 2. Accountability: to have a fiduciary duty to consider the interests of workers, the com-munity, and the environment 3. Transparency: to report annually to the public on overall social and environmental performance with a credible and transparent third-party standard

5. Among the advantages for global entrepreneurs of diaspora networks is the________ speed with which information flows across borders. distrust among traditional trading partners. creation of places where anything can happen. decline in political risks across ethnic communities.

A

characterizations of a social entrepreneur

Adoption of a mission to create and sustain social value (beyond personal value) Recognition and relentless pursuit of opportunities for social value Engagement in continuous innovation and learning Action beyond the limited resources at hand Heightened sense of accountability

triple bottom line

An accounting framework that incorporates the social, environmental, and economic dimensions of an organization.

innovation team

An internal corporate team formulated for the purpose of creating new innovations for the organization. The unit is semiautonomous in the sense that it has its own budget as well as a leader with the freedom to make decisions within broad guide-lines. The unit often is separated from other parts of the firm—in particular, from parts involved with daily activities.

3. Emerging opportunities in the international arena are being fueled by a(n) _____ in trade barriers and _____ trading blocks increase; the emergence of decrease; the emergence of decrease; a decline in increase; a decline in

B

4. If we accept the argument that social entrepreneurship is a continuum, at one extreme would be social entrepreneurs driven exclusively by producing social benefits; at the other would be social entrepreneurs motivated by_______ the environment with social benefits being the means. profitability with social benefits being the means. income from their beneficiaries. income with entrepreneurial means.

B

Shared Vision Objectives

Belonging, Relationships, Structure, Commitment

2. The major thrust of corporate entrepreneurship is to______ encourage greater risk taking. raise profitability. encourage innovation. increase morale.

C

1. Which of the following is not a characteristic of firms that exhibit corporate entrepreneurships? being dynamic being flexible being prepared to take on new business opportunities being stagnant

D

global thinkers

Entrepreneurs who expand into foreign markets must be __ __ in order to design and adopt strategies for different countries

Factors to research for foreign markets

Government regulations Political climate Infrastructure Distribution channels Competition Market size Local customs and culture

Resource-rich countries

Have extractive assets The OPEC nations and many parts of Africa

Market-rich countries

Have large purchasing power Europe, Brazil, Mexico, India, China, and the United States

Bottom-line measures of economic performance

Personal income • Cost of underemployment • Establishment sizes • Job growth • Employment distribution by sector • Percentage of firms in each sector • Revenue by sector contributing to gross state product

Two types of innovation

Radical Incremental

social impact investing

Raising funds for socially motivated causes.

Practices for Establishing Innovative-Driven Organizations

Set explicit innovation goals Create a system of feedback and positive reinforcement Emphasize individual responsibility Provide rewards for innovative ideas Do not punish failures

Internationalization

The outcome of a sequential process of incremental adjustments to changing conditions of the firm and its environment. This process progresses step-by-step as risk and commitment increase and entrepreneurs acquire more knowledge through experience.

Organizational boundaries

These boundaries, real and imagined, prevent people from looking at problems outside their own jobs. People must be encouraged to look at the organization from a broad perspective. Organizations should avoid having standard operating procedures for all major parts of jobs, and should reduce dependence on narrow job descriptions and rigid performance standards.

Radial innovation

These innovations take experimentation and determined vision, which are not necessarily managed but must be recognized and nurtured.

innovation

Today's executives agree that ___is the most important pathway for companies to accelerate their pace of change in the global environment.

Licensing

a business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain technology or trademarks) grants permission to some other group or individual to manufacture that product in return for specified royalties or other payments

Shared vision

a critical element for a strategy that seeks high achievement requires identification of specific objectives for corporate entrepreneuring strategies and of the pro-grams needed to achieve those objectives.

direct foreign investment

a domestically controlled foreign production facility

Social entrepreneurship

a form of entrepreneurship that exhibits characteristics of non-profits, governments, and businesses, combining private-sector focus on innovation, risk taking, and large-scale transformation with social problem solving.

World Trade Organization (WTO)

a permanent global institution to promote international trade and to settle international trade disputes the umbrella organization governing the international trading system

champion

a person with a vision and the ability to share it. needed by both types of innovation

Green capitalism, also referred to as green entrepreneurship

a powerful new force in examining the manner in which business is conducted in relation to the environment.

shared value

an approach to creating economic value that also creates value for society by addressing its needs and challenges

Corporate Entrepreneur-ship Assessment Instrument (CEAI),

an assessment instrument that provides for a psychometrically sound measurement of key entrepreneurial climate factors.

European Union (EU)

an economic and political union of 28 member states, which are located primarily in Europe. The objectives of the EU include (1) the elimination of custom duties among all member states, (2) the free flow of goods and services among all members, (3) the creation of common trade policies toward all countries outside the EU, (4) the free movement of capital and personnel within the bloc,5) the encouragement of economic development throughout the bloc, and (6) monetary and fiscal coordination among all members.

Top Management Support

an effort by the top management of the corporation to develop and educate employees concerning innovation and intrapreneurship

elements of corporate entrepreneurship strategy

an entrepreneurial strategic vision, a pro-entrepreneurship organizational architecture, and entrepreneurial processes and behavior as exhibited across the organizational hierarchy

North American Free Trade Agreement (NAFTA)

an international agreement among Canada, Mexico, and the United States that eliminates trade barriers among the three nations.

Social risks

antagonism among classes, religious conflict, unequal income distribution, union militancy, civil war, and riots.

Diaspora networks

are relationships among ethnic groups that share cultural and social norms.

sustainable entrepreneurship

as being "focused on the preservation of nature, life support, and community in the pursuit of perceived opportunities to bring into existence future products, processes, and services for gain, where gain is broadly construed to include economic and noneconomic gains to individuals, the economy, and society."

advantages of developing a corporate entrepreneurial philosophy

atmosphere leads to new products/services organization can maintain its competitive posture promotes a climate conducive to high achievers and helps the enterprise motivate and keep its best people.

Importing

buying and shipping foreign-produced goods for domestic consumption.

intracapital

capital set aside for the corporate entrepreneur to use whenever investment money is needed for further research ideas.

Economic risks

changes in tax laws, rapid rises in costs, strikes, sudden increases in raw materials, and cyclical/dramatic shifts in GNP

Steps to help restructure corporate thinking and encourage an entrepreneurial environment

early identification of potential innovators top-management sponsorship of innovative projects creation of innovation goals in strategic activities promotion of entrepreneurial thinking through experimentation development of collaboration between innovators and the organization at large.

sustainable entrepreneurship includes

ecopreneurship social entrepreneurship, Corporate social responsibility

ecovision

encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands

advantages of trading internationally

enhanced prospects for growth through market expansion utilizing idle capacity, minimizing cyclical or seasonal slumps, getting acquainted with manufacturing technology used in other countries, learning about products not sold domestically, learning about other cultures, acquiring growth capital more easily in other countries, and having the opportunity to travel for business and pleasure

Ecopreneurship

environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment, including the Earth, biodiversity, and ecosystems

benefit corporation

exactly the same as traditional corporations except for a few specific elements that make them more socially sustainable enterprises

Financial risks

fluctuating exchange rates, repatriation of profits and capital, and seasonal cash flows.

disadvantages of joint ventures

fragmented control.

advantages of joint ventures

he firm would be able to gain an intimate knowledge of the local conditions and government where the facility is located Each participant would be able to use the resources of the other firms involved the initial capital outlay and the overall risk would be lower than if the firm were setting up the operation alone

Political risks

include unstable governments, disruptions caused by territorial conflicts, wars, regionalism, illegal occupation, and political ideological differences.

learning curve concept

increased sales will lead to greater efficiencies along the cost curve, which in turn will lead to increased profits.

collective entrepreneurship

individual skills are integrated into a group;

international alliances.

informal international cooperative alliances, formal international cooperative alliances (ICAs), and international joint ventures.

certified B corporations

is a certification conferred by the non-profit B Lab. have been certified as having met a high standard of overall social and environmental performance and, as a result, have access to a portfolio of services and support from B Lab that benefit corporations do not.

Vision

leaders articulate but the specific objectives are developed by managers and employees of the organization.

factors critical to the internal environment of an organization seeking to have its managers pursue innovative activity

management support, autonomy/work discretion, rewards/reinforcement, time availability, organizational boundaries.

Global entrepreneurs

opportunity-minded and open-minded, able to see different points of view and weld them into a unified focus. They rise above nationalistic differences to see the big picture of global competition without abdicating their own nationalities.

Incremental Innovation

refers to the systematic evolution of a product or service into newer or larger markets.

Social Corporate Entrepreneurship Scale

scale that would measure organizational antecedents for corporate entrepreneurship intended to create social value

corporate entrepreneurship

the infusion of entrepreneurial thinking into large bureaucratic structures.

individual entrepreneurial cognitions and external environmental conditions

the initial impetus for adopting a corporate entrepreneurship strategy

Exporting

the shipping of a domestically produced good to a foreign destination for consumption.

joint venture

when two or more firms analyze the benefits of creating a relationship, pool their resources, and create a new entity to undertake productive economic activity.

Corporate social responsibility

which refers to actions that appear to further some social good, beyond the interests of the firm and that which is required by law, and often denotes societal engagement of organizations

social entrepreneurs

· are change agents who continuously strive for innovation in their social-driven businesses or non-profit organizations to address social problems. Social entrepreneurs are change agents who create changes to solve long-term social problems.

Bottom-line measures of environmental performance

• Hazardous chemical concentrations • Selected priority pollutants • Electricity consumption • Fossil fuel consumption • Solid waste management • Hazardous waste management • Change in land use/land cover

Bottom-line measures of social performance

• Unemployment rate • Median household income • Relative poverty • Percentage of population with a post-secondary degree or certificate • Average commute time • Violent crimes per capita • Health-adjusted life expectancy