Foundations exam 2 Ackall TCU

4 cons to starting business from scracth

1. a lot of pressure 2. takes time, money, sweat equity to build customer base 3. hard to get credit from lenders and suppliers without track record 4. challenging logistics from securing permit to hiring employees

4 advantages of general partnerships

1. ability to pool financial resources 2. ability to share responsibilities and capitalize on complementary skills 3. ease of formation 4. possible tax advantages

2 pros to starting business from scratch

1. all your concept, decisions, structure 2. don't have to deal with prior owner's bad decisions

6 typical steps in selection process of HR procedures. small businesses often follow more streamlined process

1. applications 2. interviews 3. testing 4. references and background checks 5. job offers 6. determining full-time or contingency

4 pros to buying a franchise

1. buying your own piece of a well-known brand and proven way of doing business 2. management expertise and counseling come with franchise package 3. franchisers occasionally offer financing that can make purchase possible along with advice 4. low 5% first year failure rate

5 factors that companies base compensation on regarding specific positions and individuals

1. competition 2. contribution 3. ability to pay 4. cost of living 5. legislation

5 disadvantages/limitations of LLCs

1. complexity of formation 2. annual franchise tax 3. foreign status in other states 4. limits on types of firms that can form LLCs 5. differences in state laws

3 pros to buying an established business

1. concept, organizational structure, operating practices are already in place 2. relationships with customers, suppliers and other stakeholders are established 3. getting financing and crediting is less challenging

6 disadvantages of franchising

1. costs (high initial fee and ongoing royalty, total investment) 2. lack of control 3. negative halo effect 4. growth challenges 5. restrictions on sale 6. poor execution

HR role in performance appraisals

1. creating evaluation tools 2. coordinating appraisal process (lots of paperwork) 3. training managers in providing relevant, honest objective feedback 4. training workers how to respond if they believe appraisal is unfair

5 advantages to sole proprietorships

1. ease of formation 2. retention of control 3. pride of ownership 4. retention of profits 5. possible tax advantages

5 disadvantages to C Corporations

1. expense and complexity of formation and operation 2. complications when operating in more than one state 3. double taxation of earnings and additional taxes 4. more paperwork, more regulation, less secrecy 5. possible conflicts of interest

4 methods for market development internationally

1. exporting 2. licensing 3. franchising 4. direct investment

4 strategies for firms to reach global markets. international trade offers new profit streams and lower costs at times but introduces higher level of risk and complexity. these options fall in spectrum of low cost-low control to high cost-high control

1. foreign outsourcing and importing 2. exporting 3. foreign licensing and foreign franchising 4. foreign direct investment

most common reasons for starting own ventures (entrepreneurship)

1. greater financial success 2. independence 3. flexibility 4. challenge 5. survival

5 reasons training and development are needed to maintain competitive edge

1. increased innovation in strategies and products 2. increased ability to adopt new technologies 3. increased efficiency and productivity 4. increased employee motivation and lower employee turnover 5. decreased liabitlity

7 major hurdles presenting challenges to Human Resource Managment

1. layoffs and outsourcing 2. wage gap 3. older workers 4. younger workers 5. women workers 6. work-life balance 7. lawsuits

3 cons to buying a franchise

1. less opportunity for creativity since most agreements tie you to franchise requirements 2. if something goes wrong with national brand, your business will suffer too 3. initial purchase price can be steep, not including ongoing percent-of-sales royalty feel

4 advantages of franchising

1. less risk 2. training and support 3. brand recognition 4. easier access to funding

5 disadvantages of sole proprietorships

1. limited financial resources 2. unlimited liability 3. limited ability to attract and maintain talented employees 4. heavy workload and responsibilities 5. lack of permanence

5 advantages of C Corporations

1. limited liability 2. permanence 3. ease of transfer of ownership 4. ability to raise large amounts of financial capital 5. ability to make use of specialized management

4 advantages to LLCs

1. limited liability 2. tax pass-through 3. simplicity and flexibility in management and operation 4. flexible ownership

5 different categories/types of training and development

1. orientation 2. on-the-job training 3. off-the-job training 4. computer-based training 5. management development

7 key core areas of human resource management that should fall under the company's strategic planning umbrella that HR plan should encompass

1. recruitment 2. selection 3. training 4. evaluation 5. compensation 6. benefits 7. separation

non-tariff barriers that more nations are imposing as tariffs decrease to seek control. tend to be fairly effective b/c complaints against them are hard to prove and easy to counter (5 examples)

1. requiring red-tape-intensive import licenses for certain categories 2. establishing nonstandard packaging requirements for certain products 3. offering less-favorable exchange rates to certain importers 4. establishing standards on how certain products are produced/grown 5. promotion a "buy national" consumer attitude among locals

6 key items normally covered in franchise agreement

1. terms and conditions 2. fees and other payments 3. training and support 4. specific operational requirements 5. conflict resolution 6. assigned territory

4 disadvantages of general partenership

1. unlimited liability 2. potential for disagreements 3. lack of continuity 4. difficulty in withdrawing

most common appraisal errors

1. using performance appraisal as chance to catch employees doing something wrong (Gotcha) 2. using mandated annual reviews as excuse to only give feedback once a year (once-a-year wonder) 3. using gut feeling as substitute for honest, relevant documentation of both expectations and compliments (straight from the gut) 4. managers giving too much weight on recent accomplishments, discounting early part of review period (what have you done for me lately) 5. managers filtering every comment through personal biases ("me filter")

2 cons to buying an established business

1. working with someone else's idea can be less fun 2. may inherit old mistakes from poor employee relations to pending lawsuits

countries that have formed the largest common market in the world

28 countries of the EU

rough estimate of how much experience you should gain working for someone else in field that interests you before starting new business. can learn what doesn't fly in your industry with low personal risk and start developing. could get too comfortable if you stay longer

3 years

max number of employees to define small business according to SBA for research purposes, however differs across industries. employees can ranger from fewer than 100 to 1,500 and average revenue from 0.75 million to 28.5 million

500 employess

how much of meaning during face-to-face communication comes from verbal content of message

7%

federal legislation that prohibited discrimination in hiring, promotion, and compensation against people with disabilities and required employers to make "reasonable" accommodations for them

Americans with Disabilities Act of 1990

most common type of corporation which is a legal business entity that offers limited liability to all of its owners, who are called stockhodlers

C Corporation

4 types of corporations

C Corporation, S corporation, statutory close (closed) corporation, nonprofit corporation

if HR department reports to this position, strategic possibilities are unlimited

CEO

appointed by board of directors to manage the company on a daily basis and sets their level of compensation and monitors their performance and provides advice on broad policy issues, approves their major proposals

CEO, corporate officers

if HR department reports to this role, may be on the track to outsourcing

CFO

2 countries that have much bigger opportunity than US in terms of size and economic growth, denoted by GDP growth rate

China, India

most influential piece of employment law. federal legislation. contains Title VII which prohibits discriminatory practices in work place

Civil Rights Act of 1964

the basic rules governing how a corporation is organized and how it conducts its business, how it is organized and managed. adopting these is part of requirement in forming corporation along with filing articles of incorporation and paying filing fees.

Corporate bylaws

country that US recently lifted the embargo they imposed on them

Cuba

state that has been very successful at attracting corporations

Delaware

established in 2006. second initiative to boost minority franchising. has cooperation of variety of organizations promoting minority business ownership. franchisors who participate in program receive information and marketing materials to reach minority franchisees more effectively

Diversity Fran

a federal agency designed to regulate and enforce the provisions of Title VII in the Civil Rights act of 1964. Congress beefed it up with additional powers to regulate and to enforce its mandates, making it a powerful force in the human resources realm

Equal Employment Opportunity Commission (EEOC)

legislation that mandated that men and women doing equal jobs receive equal pay

Equal Pay Act of 1963

the world's largest common market, composed 28 European nations. overarching goal is to bolster Europe's trade position and to increase its international political and economic power. has removed all trade restrictions among member nations and unified internal trade rules, allowing goods and people freely among EU countries. has created standardized policies for import and export b/w EU and the rest of the world. introduced single currency, the Euro in 2002. leading edge approach to environmental protection, quality, production and human rights

European Union (EU)

legislation that established a minimum wage and overtime pay for employees working more than 40 hours a week

Fair Labor Standards Act of 1938

federal legislation that required firms with 50 or more employees to provide up to 12 weeks of job secure, unpaid leave on the birth or adoption of a child or the serious illness of a spouse, child, ore parent

Family and Medial Leave Act of 1993

organization that requires franchisors to provide potential franchisees with Franchise Disclosure Document

Federal Trade Commission (FTC)

document required by FTC to be given to franchisees that gives a detailed description of all aspects of a franchise that the franchisor must provide to the franchisee at least 14 calendar days before the franchise agreement is signed. invaluable source about virtually every aspect of franchise. provides contact information for at least 100 current franchisees. required to be written in plain English

Franchise Disclosure Document (FDD)

international trade accord designed to encourage worldwide trade among its members. established in 1948 by 23 nations. has undergone a number of revisions. most significant stemmed from Uruguay round of negotiations which took steps to slash average tariffs and to reduce other trade barriers among the 125 nations that signed

General Agreement on Tariffs and Trade (GATT)

2 alternatives to PowerPoint, cloud-based softwares

Google Presentations, Prezi

key goal is to nurture their human investment so that it yields the highest possible return

Human resource management

to achieve its goals this organization takes the following steps: 1. supports stable exchange rates 2. facilitates smooth system of international payments 3. encourages member nations to adopt sound economic policies 4. promotes international trade 5. lends money to member nations to address economic problems

IMF

federal legislation that required employers to verify employment eligibility for all new hires

Immigration Reform and Control Act of 1986

an international organization of 188 member nations that promotes international economic cooperation and stable growth. funding comes from member nations w/ US contributing twice as much as any other country. best known as a lender of last resort to nations in financial trouble. implemented historic debt relief program for poor countries. has extended 100% debt forgiveness to 35 poor countries

International Monetary Fund (IMF)

benefits: all countries' economies involved have grown and thrived drawbacks: 1 of the country's trade deficits with other two countries has skyrocketed while exports to both nations have increased, imports have grown far faster and both countries are among top 10 contributors to other country's trade deficit, also increased pollution and worker abuse

NAFTA

major initiative that has given efforts to boost minority franchising. contains directory of more than 500 franchisors who actively promote minority franchise ownership. first initiative and was founded in 2000

National Minority Franchising Initiative (NMFI)

the treaty among the US, Mexico, and Canada that eliminated trade barriers and investment restrictions over a 15-year period starting in 1994. has caused US economy to grow significantly

North American Free Trade Agreement (NAFTA)

federal legislation that required safety equipment fore employees and established maximum exposure limits for hazardous substances

Occupational Safety and Health Act of 1970

most common visual aid option in business communication

PowerPoint slides

created in 2006 by National Conference of Commissioners on Uniform State Laws that could be used as a model for LLC laws by all states. only a few states have adopted

Revised Limited Liability Company Act

key advantages include: 1. IRS does not tax earnings separately. earnings pass through the company and are taxed only as income to stockholders, avoiding problem of double taxation 2. stockholders have limited liability

S corporation

limitations include: 1. it can have no more than 100 stockholders 2. with only rare exceptions, each stockholder must be a US citizen or permanent resident of US (no ownership by foreigners or other corporations)

S corporation

supported by the SBA. an organization affiliated with the SBA that provides free comprehensive business counseling for mall business owners from qualified volunteers

Service Crops of Retired Executives (SCORE)

an agency of the federal government designed to maintain and strengthen the nation's economy by aiding, counseling, assisting, and protecting the interests of small businesses.

Small Business Administration (SBA)

source for loans. doesn't give free money to start-up business (neither grants, nor interest-free loans) but partially guarantees loans from local commercial lenders. reduces risk for lenders who are more likely to lend money to new business program

Small Business Administration (SBA)

SBA works hand in hand with individual states to fund these local entities which provide a range of free services for mall businesses from developing your concept, to consulting on your business plan, to helping with your loan applications. local offices affiliated with the SBA that provide comprehensive management assistance to current and prospective small business owners

Small Business Development Centers (SBDCs)

key advantages include: 1. it can operate under simpler arrangements than conventional corporations. E.G. it doesn't have to elect a board of directors or hold an annual stockholder's meeting 2. all owners can actively participate in management while still having limited liability

Statutory Close (closed) corporation

limitations include: 1. number of stockholders is limited (usually no more than 50, varies among states) 2. stockholders normally can't sell their shares to the public without first offering the shares to existing owners 3. not all states allow formation of this type of corporation

Statutory Close (closed) corporation

portion of Civil Rights Act of 1964 that prohibits the discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, color, religion, sex, or national origin for employers with 15 or more workers. has been supplemented overtime by Congress with legislation that prohibits discrimination based on pregnancy, age (40+) and disability

Title VII

countries that have formed the largest trading bloc in the world

US, Mexico, Canada

ministers of this institution meet every two years to address current world trade issues. emphasis of this institution's meetings have increasingly shifted towards services rather than goods. key concern is controlling piracy of intellectual property

WTO

established in aftermath of WWII. an international cooperative of 188 member countries, working together to reduce poverty in the developing world. influences global economy by providing financial and technical advice to the governments of developing countries for projects in a range of areas (infrastructure, communications, health, education). financial assistance comes in form of low-interest loans

World Bank

published a "Doing Business" report that ranks ease of doing business for small and medium-sized companies in 189 different countries. showed ________ followed by ______, _______, _____, ______, ________, _____ leads in ease of doing business (8 answers total)

World Bank Singapore, New Zealand, Hong Kong SAR China, Denmark, South Korea, Norway, US

country has this when it can produce more of a good than other nations using the same amount of resources

absolute advantage

two types of competitive advantages

absolute advantage, comparative advantage

offers tools beyond money. website has wealth of information from industry specific statistics to general trends to updates on small business regulations.

access SBA resources

when engaging in foreign trade allows individual firms to capitalize on products that aren't present in the right amount for the right price in each individual country. helps even out resource imbalances among nations

access to factors of production

3 key reasons for international trade

access to factors of production, reduced risk, inflow of innovation

firm making the purchase in an acquisition

acquiring firm

type of corporate restructuring that occurs when one firm buys another firm. after this happens the firm that was bought ceases to exist as an independent entity while the firm that bought it continues in operation and its stock is still traded

acquisition

5 methods of foreign direct investment

acquisitions, offshoring, joint ventures, partnerships, strategic alliances

attentive listening that occurs when the listener focuses his or her complete attention on the speaker. difference between listening speed (125-250 words per minute) and thinking speed (1,000-3,000 words per minute) leads to problems engaging

active listening

sentence construction where the subject performs the action expressed by the verb. works better for vast majority of business communication. facilitate direct, powerful, concise communication. accountability is a benefit

active voice

has become increasingly controversial in the past few decades. opponents have argued that giving preferential treatment to some groups has led to reverse discrimination against groups who do not get same benefits. argues that it violates principle that all individuals are equal under the law. recent US Supreme Court decisions have supported policies, pointing out that gov't has compelling interest to ensure racial diversity. Court has rejected "mechanistic" programs that amount to quota systems based on race, ethnicity or gender

affirmative action

policies meant to increase employment and educational opportunities for minority groups- especially groups defined by race, ethnicity or gender. emerged during American civil rights movement in 1960s. seeks to make up for systematic discrimination of the past by creating more opportunities in the present.

affirmative action

refers to words that suggest stereotypical attitudes toward people of specific ages. will become detrimental as workforce ages. replace words implying youth with energy

age bias

5 ways to get your message across better

analyze your audience, be concise, avoid slang, avoid bias, use active voice

wealthy individuals who invest in promising start-up companies for one basic reason: to make money themselves. invest in start-up companies with high growth potential (30-40% per year) in exchange for a share of ownership

angel investors

what many states require LLCs pay although they may be exempt from corporate income tax

annual franchise tax

number of owners LLCs can have, including foreign investors and other corporations

any number

which partner is targeted in event of lawsuit with general partnership

any of partners

written versions of these are usually initial screening mechanism. include questions about education adnd experience that determine whether candidate gets further consideration. primarily tool to reject unqualified candidates

applications

structured training programs that mandate that each beginner serve as an assistant to a fully trained worker for a specified period of time before gaining full credentials to work in the field. formal programs tend to be more effective way of handling on-the-job training. fairly common in trades such as plumbing, brick-laying. more common across wide range of professions in Europe (e.g. bankers to opticians)

apprenticeship

document filed with a state government to establish the existence of a new corporation

articles of incorporation

helps decrease chances of liability issues by reducing risk of hiring dangerous employee which opens doors to negligent-hiring lawsuits for not taking "reasonable care"

background check

measure of the total flows of money into or out of a country. includes financial flows such as foreign borrowing, lending, foreign aid payments, and receipts and foreign investments

balance of payments

shortfall that occurs when more money flows out of a nation than into that nation

balance of payments deficit

overage that occurs when more money flows into a nation than out of that nation

balance of payments surplus

basic measure of the difference between a nation's exports and imports

balance of trade

3 alternate sources of funding for entrepreneurs in start-up besides personal resources

bank loans, angel investors, capital venture firms

firms that most states do not allow to form as LLCs

banks, insurance companies, nonprofit organizations

noncash compensation including programs such as health care, vacation and childcare. represent significant chunk of money for employers.

benefits

preconception about members of a particular group. common forms include gender, age, and race/ethnicity/nationality. can get in the way of the effectiveness of your message

bias

complying with federal regulations can be overwhelming for small businesses. however Congress continuing to examine ways to reduce growing regulatory burden on small businesses

bigger regulatory burden

standard for business writing. uses single spacing, double spacing between paragraphs, no indention in the first sentence of paragraphs

block paragraphs

individuals who are elected by stockholders of a corporation to represent their interests. contain the management skills and desire to effectively manage complex business enterprise such as corporation. establishes corporation's missions and sets its broad objectives. seldom take an active role in day to day management of company.

board of directors

gets in the way of inviting words if body movements are off

body language

introduction and closing should serve as these so that your closing circles back to your introduction

bookends

if recipient of email will feel positive or neutral about your message begin with your:________ and follow up with your: ________________

bottom line, rationale and explanations

payment of money for favorable treatment

bribery

major issues throughout world that are illegal in every major country but often accepted as standard way of doing business

bribery and corruption

tool to engage your reader's attention when you have more than one of anything in your writing. directs your reader's eye through writing

bulleted lists

a broad franchise agreement in which the franchisee pays for the right to use the name, trademark, and business and production methods of the franchisor.

business format franchise

a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives. provides an invaluable way to keep you and team focused on success. crucial for obtaining outside funding which is why it is written usually after using personal funding sources. can be constantly in flux if industry is rapidly changing. 25-50 pages long and takes 6 months to write

business plan

answers: 1. what service or product does business provide and what needs does it fill? 2. who are potential customers for product or service and why will they purchase from you 3. how will you reach potential customers 4. when will you get financial resources to start your business 5. when can you expect to achieve profitability

business plan

an approach to employee benefits that gives all employees a set dollar amount that they must spend on company benefits, allocated however they wish withing broad limitations

cafeteria-style benefits

3 negatives to cloud-based presentation softwares

cannot access without internet, security concern, not all features

type of divestiture where firm converts particular unit or division into a separate company and issues stock in the newly created corporation. however, sells newly created stock to outside investors, thus raising financial capital. in many cases firm only sells minority of total shares to maintain majority ownership

carve-out

growing number of people with these indicates economic growth

cell phones

document filed in the state where the business is organized in order to form an LLC

certificate of organization, articles of organization

hard to attain for a new venture b/c banks and other lenders are hesitant to fund a business that doesn't have a track record, and if they do require a lot of paperwork and long waiting period. no conventional lending source will lend 100% of teh start-up dollars for a new business and require that entrepreneur provide minimum of 25-30% of total start-up costs from personal resources

commercial loans

group of countries that have eliminated tariffs and harmonized trading rules to facilitate the free flow of goods among member nations

common market

represents basic ownership interests in a corporation, alternate form is preferred

common stock

type of stockholders that have voting rights

common stockholders

tips for striking the right tone with good business writing that sounds natural

common words, active voice, personal pronouns, contractions

the transmission of information between a sender and a recipient

communication

obstacles to efective communication, typically defined in terms of physical, language, body language, cultural, perceptual, organizational barriers

communication barriers

various ways in which a message can be sent, ranging from one-on-one in-peron meetings to Internet message boards

communication channels

great HR management starts with great planning. objective should flow from _________ ________ __________. strategies must reflect _________ ___________

company's master plan, company priorities

benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries. countries tend to produce products which they have this in. seldom remains static as technology changes and workforce revolves

comparative advantage

combination of pay and benefits that employees receive in exchange for their work. researching, designing and managing effective systems for this are core HR functions. includes paycheck and noncash benefits. represents big chunk of product costs esp. in labor intensive businesses. may be boosted above norm (instead of trying to cut labor costs) to find and keep best workers

compensation

industries succeed on worldwide basis in countries where they enjoy this

competitive advantage

version of flextime scheduling that allows employees to work a full-time number of hours in less than the standard workweek. most popular is to give four 10 hour days rather than five 8 hour days

compressed workweek

mostly delivered via the Web and plays crucial role in off-the job training. broadband technologies has turbocharged audio and visual capabilities which support engaging and interactive online training programs. standardizes presentation of material since it doesn't depend on quality of individual instructor. helps train worldwide. draw back is it takes a lot of discipline to complete and some people learn better through direct human interaction

computer-based training

encompasses how entrepreneurs must believe in their own ability to achieve and be encouraged to act boldly. however must take care not to confuse likelihood with reality

confidence

a combination of two firms that are in unrelated industries. goal is to reduce risk by making the firm less vulnerable to adverse conditions in any single market. EX: Anbang insurance (Chinese company) buys the New York Waldorf Astoria Hotel from Hilton Worldwide Holdings

conglomerate merger

10 tips for excellent emails

consider both primary and secondary readers, keep it short, proofread, use standard writing, avoid attachments, don't assume privacy, respond promptly, assume the best, create compelling subject line, think before you write and send

frequency in which best managers offer informal feedback so that employees always know where they stand

constant basis

employees who do not expect regular, full-time jobs, including temporary full-time workers, independent contractors, and temporary agency or contract agency workers. come companies use when they experience fluctuating need for workers. as a group account for more than 30% of US employment. offer flexibility, leading to lower costs. but workers can be less committed and experienced. too much reliance on them could sabotage company productivity and customer experience

contingent workers

business entity created by filing specific form with the appropriate state agency, paying state's fees and meeting other requirements. form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners. like an artificial person: can legally engage in virtually any business activity (enter into binding contracts, borrow money, own property, pay taxes, initiate legal actions in own name. can be partner in partnership or own another such entity. owners have limited liability and aren't personally responsible for the debts and obligations of their company

corporation

what some states are known for as far as forming businesses when their requirements for forming corporations have simple forms, inexpensive fees, and low corporate tax rates

corporation friendly laws and court systems

form of ownership having the most economic impact (net income) in the US

corporations

solicitation of money for favorable treatment

corruption

international trade that involves the barter of products for products rather than for currency. surprising amount, as much as 25% of international commerce includes this. these opportunities increase during economic downturns

countertrade

when this culture is thriving, standout individuals who break free of old ways attract attention and admiration in many of the countries with higher entrepreneurship rates

cowboy culture

2 powerful contributions small businesses make to the US economy

creating new jobs, fueling innovation, vitalizing inner cities

support for body of presentation (ideally contains 3 key points)

credible information, persuasive arguments

process of funding ventures by raising money from a large number of investors via the internet. appeared in mid-2000s and became $5+ billion funding source by 2013. many sites used to fund nonprofits. largest sites are: gofundme.com, kickstarter.com, indiegogo.com

crowdfunding

6 characteristics that millionaire entrepreneurs have in common

cultivate urgency, elevate your influence, maximize your strengths, never trade time for money, don't worry what others think of you, produce first then consume scond

can include how you greet colleagues, establish eye contact, handle disagreement, eat, small talk, etc.

cultural barriers

affect interview performance and domestic companies must be aware of them as US labor pool becomes more diverse

cultural differences

if this is lacking it compounds the barriers that are come across in daunting political environment with high regulations

cultural support

benefits: companies have more control over how their business operates in a given country drawbacks: high cost (especially if business doesn't go well)

direct investment

in foreign production and marketing facilities represents deepest level of global involvement. occurs when firms either acquire foreign firms or develop new facilities from the ground up in foreign countries. can include strategic alliances or partnerships

direct investment

a type of franchising agreement in which the franchisor makes a product and licenses the franchisee to sell it

distributorship

2 most popular types of franchise arrangements

distributorship, business format franchise

the transfer of total or partial ownership of some of a firm's operations to investors or to another company. way of corporate restructuring by subtraction to rid themselves of a part of their company that no longer fits well w/ their strategic plans. allows them to streamline operations and focus on core businesses. can involve sale of assets to outsiders, raising financial capital for firm

divestiture

how respected HR departments quantify their impact

dollars in cents

how corporations are classified when they are doing business in state they are incorporated in

domestic corporation

concept that describes how IRS considers C corporations to be a separate legal entity and taxes its earnings. those earnings are then taxed again as personal income of stockholders when those earnings are given out as personal income to stockholders. for this reason corporations often reinvest earnings back into busienss b/c shareholders don't pay income taxes on retained earnings

double taxation

vibrant, compelling presentation delivery style that grabs and holds the attention of the audience

dynamic delivery

viewed at from angles of: construction permits, paying taxes, enforcing contracts

ease of doing business

involves evaluating local economic conditions. factors include: population, per capita income, economic growth rate, currency exchange, stage of economic development, infrastructure. low scores for these measures do not signal lack of opportunity though. serving less-developed markets well requires innovation and efficiency (different product features and lower costs). companies establishing brands early will have critical edge over firms that enter market after

economic barriers

more able to due to opportunities for entrepreneurial learning having exploded. colleges and universities offer entrepreneurship programs that help students develop ideas and plan and secure initial funding. seek relevant press articles, workshops, websites, and blogs

educate yourself

only occurs when you transmit relevant meaning to your audience. must by dynamic, fluid, and 2 way (includes listening)

effective communication

should be used when: 1. content is uncontroversial 2. must reach a number of people with the same message

email

complete ban on international trade of a certain item, or a total halt in trade with a particular nation. usually intended to pressure the targeted country to change political policies or to protect national security

embargo

starting point of active listening

empathy

entrepreneurship rates lower in countries with higher opportunity costs b/c they provide a high level of __________ ___________ (hard to get fired), and strong _________ _________ (financial support if you do get fired). sense of urgency regarding entrepreneurship with these in place tends to fall

employment protection, employment insurance

explains how entrepreneurs must be willing to work 6 or 7 12-hour workdays in start-up phases of running company.

energy

people who risk their time, money, and other resources to start and manage a business

enterpreneurs

effective HR must remain open to these even as they enforce broad company policies

exceptions

measurement of the value of one nation's currency relative to the currency of other nation. big influence on how global trade affect individual nations and their trading partners. must be expressed in terms of another currency

exchange rate

8 pieces of information final business plan document should include

executive summary, description of business, marketing, competition, operating procedures, personnel, complete financial data and plan (sources of start-up money), appendix (including research on industry)

biggest trend in franchising over the last few years since opportunities are greater due to less intense competitions and less saturated markets

expansion into foreign markets

3 components of analyzing audience

expectations, education, profession

most basic level of international market development. simply means producing products domestically and selling them abroad. strong opportunity for small and mid-sized companies

exporting

spectrum from lower risk/less control to higher risk/more control among market development options

exporting, licensing, franchising, direct investment

people with this view rely less on their own efforts, feeling buffeted by forces such as random luck and actions of others, which they believe will ultimately control their fate

external locus of control

the process of seeking new employees from outside the firm. usually used when firm is too small or doesn't have right set of skills to recruit internally or if it needs fresh thinking and energy. means tapping into range of different resources. resources include: employment websites, newspaper ads, trade associations, college/university employment centers, employment agencies.

external recruitment

with American culture, want it sustained (not cold stare) that indicates integrity, trust, and repectful attention

eye contact

4 forms of nonverbal communication

eye contact, tone of voice, facial expressions, gestures and posture

should be used when: 1. your message is personal, emotional, complex, or high-priority (if recipient might be volatile, consider using less immediate channel) 2. you need or want instant feedback from your audience

face-to-face meeting

everyone communicates with wide range of emotion on faces

facial expressions

4 areas qualities of performance appraisals managers must focus on for it to be most effective

fairness, relevance, objectivity, balance

personal reasons leading to employee separation

family needs, retirement, change in career aspirations

4 major markets franchise establishments have come to dominate

fast food, auto dealerships, convenience stores, mail distribution centers

2 things that make forming LLCs more difficult and burdensome than sole proprietorships and, in general, partnerships

file articles of organization, filing fees

top challenge for many entrepreneurs in their start-up year

finding money to fund business

employee separation due to failure

fired

a scheduling option that allows workers to choose when they start and finish their workdays, as long as they complete the required number of hours. usually employers oblige employees to start between certain times and take lunch breaks between certain times then end after 8 hours. ensures everyone is present during cor hours for communication and coordination. tends to increase employee morale and retention, but makes less sense in jobs that entail extensive teamwork and customer interaction. requires careful management to avoid abuse

flextime

3 benefits that offer employees more flexible scheduling options

flextime, telecommuting, job-sharing

must be used to determine future HR requirements. requires deep understanding of company's goals and strategies. must assess future supply of workers (consider retirement and graduation rates and pros/cons of international labor market)

forecasting

allow companies to gain a foot-hold quickly in new markets.

foreign acquisitions

how corporations are classified when they are doing business in state that they are not incorporated in. requires additonal paperwork, fees and taxes but only necessary if corporation is involved in substantial business activities within other state

foreign corporation

specialized type of licensing but goes further by one firm offering the right to actually produce and market its products if the foreign firm/individual agrees to specific operating requirements (complete package of how to do business)

foreign franchising

benefits: allows firms to expand into foreign markets with little or not investment, helps circumvent government restrictions on importing in closed markets drawbacks: maintaining control of licenses and be challenge, run risk that unethical licensees may become their competitors (use information that they gathered in agreement)

foreign licensing

involves domestic firm granting a foreign firm the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area. common in food and beverage industry

foreign licensing

(contract manufacturing) contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic products. most rely on network of manufacturers in less developed countries

foreign outsourcing

benefits: dramatically lower wages (driving down cost of production) risks: quality control requires detailed specifications, social responsibility in having an obligation to ensure that their factories adhere to ethical standards or they could face consumer backlash in own countries

foreign outsourcing

a licensing arrangement under which one party allows another party to use its name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations

franchise

the contractual arrangement b/w a franchisor and franchisee that spells out the duties and responsibilities of both parties. required for franchisee to sign to obtain a franchise. legally binding contract specifying relationship b/w franchisor and franchisee in great detail

franchise agreement

party who is granted ability in licensing agreement to use other party's name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations

franchisee

pay both start-up fee and ongoing percentage of sales to firm who gave them rights to produce and market its products. assume identity of the company who gives them rights (key difference b/w licensee)

franchisees

firm that offers other businesses the right to produce and market its products if the franchisee agrees to specific operating requirements. often offer the firm they give licensing to management guidance, market support, and financing

franchisor

party who allows another party in licensing arrangement to use its name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations

franchisor

the unrestricted movement of goods and services across international borders. global move towards this has been most dramatic change in world economy

free trade

2 positives to cloud-based presentation

free, environmentally greener

LLP liability protection offered by some states in which partners have limited liability for all claims against their company, except those resulting from their own negligence or malpractice

full shield protection

5 strategies to help you succeed over long-term as small business owner

gain experience, learn from others, educate yourself, access Small Business Administration resources, develop a business plan

consists of words that suggest stereotypical attitudes towards specific genders. if you can't find out a name, in writing use titles instead of genders. convert to the plural to avoid or account for both genders

gender bias

each partner has right to participate in the company's management and share in the profits. has unlimited liability for any debts the company incurs

general partnership

aspects of formation are: no limit to amount of people that can form, voluntary agreement entered into, legally possible to start on the basis of verbal agreement. typical agreement will spell out details like initial financial contribution, specific duties and responsibilities of each owner, manner of sharing profits/losses, how disagreements will be settled, how death or withdrawal will be dealt with

general partnerships

how you handle your body speaks of you, increase your message by aligning the two to confident, open and coherent

gestures and posture

notable trend in franchising over past few years. now own about 45% of all franchises, but number of opposite party in this category ahs not grown

growth in women franchisees

not a title but label for one of several parts. use informative formats or question formats

headings

involved in starting new businesses. odds improve significantly if you can make it past the first 5 years. survival rate declines more slowly (less businesses die) in years 7-10. 5-year survival rate depends heavily on industry

high risk of failure

5 threats small businesses face

high risk of failure, lack of knowledge and experience, too little money, bigger regulatory burden, higher health insurance costs

much higher administrative costs for small health plans than for large businesses making it more difficult for small firms to offer coverage to employees. best employees likely to demand greater insurance plan putting small businesses at disadvantage in terms of being a competitive workforce. healthcare reform may change this as it may provide an opportunity to offer works top quality health insurance at competitive rates

higher health insurance costs

best protection for companies so as to ensure they do not wrongfully terminate employee. need to have sound business reasons recorded and share those reasons with employee.

honesty, documentation

a combination of two or more firms that are in the same industry. goal is to increase size and market power within industry and to improve efficiency by eliminating duplication of facilities and personnel. EX: Medtronic (medical device company) acquires Covidien (seller of medical supplies, solutions, and surgical technologies)

horizontal merger

3 types of mergers

horizontal merger, vertical merger, conglomerate merger

occurs in acquisition when acquiring firm buys the target firm despite the opposition of the target's board and top management

hostile takeover

the management function focused on maximizing the effectiveness of the workforce by recruiting world-class talent, promoting career development, and determining workforce strategies to boost organizational effectiveness. only most effective while being in partnership with key managers throughout company (esp. senior executives)

human resource management

means buying products from oversea that have already been produced, rather than contracting with overseas manufacturers to produce special orders. don't carry the brand name but they don't carry as much risk

importing

should be used when: 1. need to reach a large audience with an important message 2. need or want to experience the immediate response of your audience

in-person presentation

risky in business presentation, if used double-check jokes, never laugh at expense of member in audience

incorporating humor

international trade can offer companies source of new ideas

inflow of innovation

key factor to consider in evaluating economic barriers. a country's physical facilities that support economic activity. includes basic systems in following areas: transportation (roads, airports, railroads, ports) communication (TV, radio, Internet/cell coverage) energy (utilities and power plants) Finance (banking, checking, credit)

infrastructure

an organization that pools contributions from investors, clients, or depositors and uses these funds to buy stocks and other securities. includes mutual funds, insurance companies, pension funds, and endowment funds

institutional investors

poor enforcement of these leads to bad political climate and is tough issues for businesses as piracy rates in emerging markets tower over those in mature ones which business decision makers admit to pirating computer software more often than average users

intellectual property rights

communication among people with differing cultural backgrounds, increasingly pivotal to long-term business success with growing of globalization

intercultural communication

5 suggestions for effective hooks in opening of speech

interesting/startling statistic, audience involvement, compelling story/anecdote, relevant simile/metaphor, engaging questions

two basic sources employees come from

internal and external

a deep-seated sense that the individual is personally responsible for what happens in his or her life. when things go well, believe that their efforts have been validated. when things go wrong, feel that they need to do better next time. this sense of responsibility encourages positive action

internal locus of control

advantages: 1. boosts employee morale by reinforcing value of experience w/in firm 2. reduces risk for the firms, since current employees have proven track record 3. lowers costs of both recruitment and training

internal recruitment

the process of seeking employees who are currently within the firm to fill open positions. involves transferring or promoting employees

internal recruitment

used by virtually every company as central part of selection process. in larger companies HR department does initial and then sends qualified candidates to hiring manager for actual selection, hiring manager usually recruits workers to participate in process. often say surprisingly little about whether candidate will perform the job and too often they are used as get-to-know you session rather than focusing on needs of position

inteviews

how many employees see the HR department

irrelevant

the examination of specific tasks that are assigned to each position, independent of who might be holding the job at any specific time. helps HR planning in deciding where company stands in terms of human resources (skills current workforce has and needs)

job analysis

an explanation of the responsibilities for a specific position

job description

must take care in designing the right one to get candidate to accept. can use tactics such as phone call from top management, royal treatment, and special perks. superb candidates will want to know in very specific terms how their contributions would affect the business

job offers

allows two or more employees to share a single full-time job. usually participants split salary equally but often need to allocate full benefits to just one of the partners. fewer than 20% of employers offer this option. can reap benefits such as higher morale and better retention

job sharing

off the job training that goes further than vestibule training. attempts to duplicate the exact conditions that the trainee will face on the job. makes sense of complex, high-risk positions (astronaut, airplane pilot)

job simulation

the specific qualifications necessary to hold a particular position

job specifications ("specs")

involves two or more companies joining forces (sharing resources, risks and profits) to pursue specific opportunities. suggestions that these occurrences b/w multinational firms and domestic partnerships can be more costly and less rewarding than thought. may make sense only in countries that require local political and cultural knowledge as core element of doing business

joint ventures

most common presentation mistake is to include too many of these in the body of your presentation, keep it between 2-4. should outline these before launching into body of speech

key ideas

should summarize these in your closing

key points

first step HR managers must take in order to earn a seat at the table

knowing the company: strategic goals, core customer, and competition

in-depth knowledge in specific area doesn't necessarily mean expertise in running a business although you may have launched business due to expertise in certain area. successful business owners must know everything from finance to human resources to marketing

lack of knowledge and experience

occurs when someone doesn't speak the language or when slang, jargon, or regional accents interfere

language barriers

these size firms may jump straight into international expansion strategies that give them more control over their operations and are likely to use a number of different approaches in different countries. most outsource with foreign suppliers and sell products to foreign markets

larger firms

international businesses must comply with these in international standards sense, those in own country and host countries. many countries can change with little notice and publicity. justice system is also challenging w/ enforcement of ownership and contract rights

laws and regulations

US has become litigious society (employees, customers, shareholders levy suits against firms) even frivolous cases can cost millions of dollars and cost reputations

lawsuits

explained by high-tech, high-end jobs following low-tech, low-end jobs out of the country or to local contractors. jobs have disappeared altogether as companies contract in response to Great Recession. leads to concern about "jobless recover"

layoffs and outsourcing

actively seek this opportunity from people who have succeeded in your field. remember industry associations, local events, other opportunities to build relationships. people who failed in field could give good insights and more willing to share their ideas if no longer struggling to develop own business

learn from others

when this is effective it reduces risk for foreign and domestic businesses

legal system

company that pays a fee and buys the rights from another company to produce and market its products/use its trademark/patent rights

licensee

company that offer rights to foreign firm to produce and market its products/use its trademark/patent rights

licensor

hybrid form of business ownership similar to corporation in some aspects and partnership in others. offers both limited liability to its owners and flexible tax treatment. considered a legal entity separate from its owners and owners have limited liability for debts of business. owners can elect to have business taxed either as a corporation or partnership or even sole-proprietorship. relatively new form of ownership

limited liability company (LLC)

newest form of business ownership, so state laws concerning their legal status and formation are still evolving.

limited liability company (LLC)

an alternate partnership arrangement in which all partners have the right to participate in management and have limited liability for a company's debts. amount of liability protection varies among states. some states only allow specific types of professional businesses to choose this formation

limited liability partnership (LLP)

partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability and as long as they don't actively participate in management, their personal wealth is not at risk

limited partnership

countries that qualify as this with per capita income have a high percentage of entrepreneurs start their own business b/c they have no other options. contributes heavily to high over-all entrepreneurship "necessity entrepreneurship" in areas where entrepreneurs are more likely to strike out on own in response to opportunity that they spot in marketplace

lower income countries

allowed by entrepreneurs wearing so many hats b/c they can hire fewer managers and specialized employees. smaller firms tend to work around costs w/ tactics such as establishing headquarters in owner's garage or offering employees flexible schedules instead of costly health benefits

lower overhead costs

developing new leaders has become priority as bulk of top-level US execs move toward retirement. programs that help current and potential executives develop skills they need to move into leadership positions. typically cover specific issues that businesses face but also less tangible topics (e.g.: communication, planning, business-analysis, change-management, coaching, team-building skills)

management development

a small segment of a market with fewer competitors than the market as a whole. tend to be quite attractive to smaller firms. firms uniquely positioned to exploit small, but profitable, markets. these spaces in market tend to have fewer competitors b/c aren't big enough or high profile enough for large firms. offer more than enough potential for small, specialized companies

market niches

4 types of small business opportunities

market niches, personal customer service, lower overhead costs, technology

what owners of an LLC are called. manage their own company under an arrangement similar to the relationship among partners in a general partnership. some LLCs hire professionals for this job

members

should be used when: 1. content is uncontroversial 2. must reach a number of people with the same message 3. must communicate lengthy or detailed information

memos/reports

corporate restructuring that occurs when two formerly independent business entities combine to form a new organization

merger

3 ways of conducting corporate restructuring in order to grow and achieve competitive advantages

mergers, acquisitions, divestitures

part of Small Business Administration that lends small amount of money (avg. of $13,000) to start-up businesses through community nonprofit organizations

microloan program

participation by this group has been low both as franchisor and franchisee. due to lack of awareness within their communities, now franchisors are making strong efforts to actively recruit this group as franchisees

minority

launch their business b/c believe it is their only economic option. includes middle-aged workers laid off from corporate jobs, new immigrants with limited English and heavy accents, those who experience discrimination in standard workplace

necessity entrepreneurs

any interference that causes the message you send to be different form the message your audience understands. key issue to effective communication

noise

key advantages include: 1. earnings are exempt from federal and state income taxes 2. members and directors have limited liability 3. individuals who contribute money or property to the organizations can take a tax deduction, making it easier for these organizations to raise funds from donations

nonprofit corporation

limitations include: 1. it has members (who may pay dues) but cannot have stockholders 2. it cannot distribute dividends to members 3. it cannot contribute funds to a political campaign 4. it must keep accurate records and file paperwork to document tax-exempt status

nonprofit corporation

communication that does not use words. common forms include gestures, posture, facial expression, tone of voice, and eye contact

nonverbal communication

3 aspects that make LLCs more simple and flexible in management than corporations

not required to hold regular board meetings, less paper work, fewer reporting requirements

some states require LLCs to publish this to operate as a limited liability company

notice of intent

includes classroom training away from job setting but typically during work hours. can be on or off site. teaches wide variety of topics from computer programming languages to negotiation skills, to stress management. some options include training workers on off-site "real" equipment (e.g. robots) similar to what they would actually use on the job (step further than classroom training). called vestibule training. step further than vestibule training is job simulation

off-the-job training

developing new facilities from scratch. most costly form of direct investment that involves significant. beneficial in that it includes complete control over how facility develops and potential for high profits

offshoring

due to oversized baby boomer generation. leads to loss of key talent and experience through massive retirements. enlightened companies have responded with programs to retain best employees through flexible schedules, training opportunities, and creative pay schedules

older workers

a training approach that requires employees to simply begin their jobs-sometimes guided by more experienced employees- and to learn as they go. popular due to its low cost. can compromise customer experience due to new employee's lack of experience and process of learning taking longer than experience employee's work

on-the-job training

11 aspects to keep in mind to deliver a high-quality speech

opening, body, close, questions, visual aids, google presentations, handling nerves, handling hostility, careful in incorporating humor, don't stare off, delivery

drafted by most organizers of LLCs which are similar to corporate bylaws

operating agreement

the opportunity of giving up the second best choice when making a decision

opportunity cost

companies may have built-in barriers to effective communication (unspoken rule people at top don't talk to with people at bottom)

organizational barriers

first step in the training and development process, designed to introduce employees to the company culture and provide key administrative information. introduce employees to company culture w/out sacrificing need-to-know administrative information. strong programs reduce employment turnover. can include mentoring, meetings with senior executives and after-work social programs

orientation

5 optional benefits that socially responsible employers and employers seeking competitive through topnotch workforce offer to employees

paid vacation days and holidays, paid sick days, health insurance, retirement programs, product discounts

LLP liability protection offered by some states where each partner has limited liability for the negligence or malpractice of other partners but still has unlimited liability for any other debts

partial shield protection

voluntary agreement in which two or more people act as co-owners of a business for profit. usually a formal long-term agreement

partnership

voluntary agreement under which two or more people act as co-owners of a business for profit

partnership

two options owners of LLCs may choose their companies to be treated as which can allow tax pass through

partnership (or sole proprietorship), corporatoin

default tax classification for LLCs with more than one owner and the one most LLCs choose. allows no separate tax on earnings of company. instead, earnings "pass through" the company and are taxed only as income of the owners. eliminates double taxation or profits. sometimes option is not chosen such as owner of single person LLC can avoid paying self-employment tax by electing to have LLC treated as corporation rather than sole proprietorship

partnership option

2 ways the IRS classifies LLCs based on tax treatment they select and how they exhibit tax information

partnerships or corporations

2 types of joint ventures

partnerships, strategic alliances

sentence construction in which subject does not do the action expressed by the verb, rather the subject is acted upon. tends to be less effective for business communication

passive voice

organizations linking some amount of worker pay directly to performance in addition to wages and salaries

pay for performance

offers another potential funding source for new business start-ups. EXs of websites: Prosper.com, LendingClub.com that bring together borrowers and investors

peer-to-peer lending

3 key factors that determine differences in differing country's total early-phase entrepreneurship rate (% of adults who have been running own business from 3 months- 3.5 years)

per capita income, opportunity costs, cultural/political environment

how audience perceives you and your agenda can create obstacles

perceptual barriers

a formal feedback process that requires managers to give their subordinates feedback on a one-to-one basis, typically by comparing actual results to expected results. most companies usually require managers to give this feedback every 6 months to once a year. typically conducted by sitting down one on one. affects decisions regarding compensation, promotions, training, transfers, and terminations.

performance appraisals

3 sources that 95% of entrepreneurs raise start-up funds from

personal accounts, family, friends

especially handy though highly risky financing resources. provides fast, flexible money but if you don't pay company back fast financing fees can take years to pay off

personal credit cards

enabled by small customer base that small firms have allowing them to develop much more personal relationships with individual customers. can be especially beneficial in some foreign markets

personal customer service

how vast majority of new firms are funded

personal resources

5 funding options for small businesses

personal resources, loans, crowdfunding, angel investors, venture capital

can range from poorly structured document to overly cold room

physical barriers

6 types of communication barriers

physical barriers, language barriers, body language barriers, perceptual barriers, organizational barriers, cultural barriers

due to political regimes differing around world. specific laws and regulations that governments create around business can hinder international trade

political and legal barriers

deeply influences whether nation is attractive to foreign business. stability is crucial. country subject to strife from civil wars, riots, and other violence creates additional risks

political climate

3 personal biases managers can filter comments through in performance appraisals

positive leniency (nice guy gives everyone great scores), negative leniency (high expectations so will give everyone low scores), halo effect (like an employee so give top scores everywhere)

most important aspect to achieve dynamic delivery

practice

10 tips to dynamic delivery

practice, know your material but don't memorize, look directly at audience 50% of time, vary voice/facial expressions/body language, use selective notes, stick to allotted time, slow down and listen to self, don't apologize, natural gestures

what it means for company to take reasonable care to correct and prevent sexual harrassment

proactive steps (comprehensive training) to ensure everyone in organization understands 1. firm does not tolerate sexual harrassment 2. firm as system in place for complaints and will not tolerate retaliation against those who complain

must be established upon hiring candidate. a specific time frame (typically 3-6 months) during which a new hire can prove his or her worth on the job before he/she becomes permanent. if everything works, employee will move from conditional to permanent status and if not, company can fire employee fairly easily

probationary period

best manner to keep relationship when borrowing money from family or friends for business purposes

professional

employee separation due to success

promoted or lured to other form

national policies designed to restrict international trade usually with the goal of protecting domestic businesses. arguments for and against trade restrictions. usually reasons to eliminate restrictions more compelling than those to enforce them

protectionism

how stock in large corporations usually comes, meaning that anyone with money and inclination to do so can buy shares

publicly traded

limitations on the amount of specific products that may be imported from certain countries during a given time period

quotas

words that suggest stereotypical attitudes toward specific races, ethnicities, and nationalities. best way to avoid is to never assume that one person embodies the attitudes, opinions, and experiences of a larger group

race, ethnicity, nationality bias

if recipient of email will feel negative about your message begin with your:________ and follow up with your: ________________ then bed sure to end on a _________________

rationale then bottom line, alternatives, positive note

global trade reduces dependence on one economy, lowing possible dangers for multinational firms. economic meltdown in one part of the world can have far reaching impact

reduced risk

although it may be tough to verify contributions and accomplishments at a former job, these can easily uncover lies about education, job titles, compensation, and lying on resume.

references

can be most promising source of new hires. for this reason some companies offer current employees cash bonus if this happens. employees that are hired in this way have excellent chance of success b/c person who recommends them has stake in their progress. these programs are bargain for employers

referrals from current employees

3 aspects/formations that encourage free trade

regional trading blocks, common markets, international trade agreements

if these are extensive and complex it can hinder entrepreneurship by raising daunting barriers (political environment)

regulations

simple test of senior management commitment to HR management. solutions from HR management will only work if senior management recognizes the potential value of effective HR managment

reporting relationship

components of writing high-impact messages

right tone, no grammar errors, block paragraphs, headings/bulleted lists

pay that employees receive over a fixed period, most often weekly or monthly. usually the pay in most professional, administrative and managerial jobs. do not qualify for overtime. salaries typically higher than wages but sometimes low-level manager's overall pay (salary) may be less than pay of wage-based employees who work ofr manager

salaries

refers to how entrepreneurs must do everything themselves from getting permits, to motivating employees, to keeping the books in addition to producing the product or service that made them start business in first place. comes with internal locus of control

self-reliance

6 tips to handling nerves

send yourself positive messages, deep breaths, sip water, focus on friendly faces in the audience, remind yourself that audience wants you to succeed, have handful of conversations with people in audience before

workplace discrimination against a person based on his/her gender. violates Title VII of Civil Rights Act of 1964. range from requests to sexual favors to presence of a hostile work environment. harasser can be male or female and doesn't have to be supervisor,. victim could be anyone affected directly or indirectly by offensive conduct (must be unwelcome conduct). total number of charges filed has dropped but charges filed by men has increased. employers share accountability if they did not take 'reasonable care' to prevent and correct or did not provide workable system for employee complaints

sexual harassment

these size firms tend to being with exporting and move along spectrum to higher cost and higher control when reaching for global markets as their business develops

smaller firms

4 basic legally mandated benefits that budget-minded employers stick to

social security, Medicare contributions, payment to state unemployment and workers' compensation programs (unemployment insurance), job protection per the Federal Family and Medical Leave Act

differences among cultures in language, attitudes and values. elements that affect business can include: nonverbal communication forms of address, attitudes towards punctuality, religious celebrations/customs, business practices, and expectations regarding meals and gifts. best way to jump is by conducting consumer research, cultivating first hand knowledge and practicing extreme sensitivity

sociocultural barriers

3 barriers to international trade. countries w/ highest barriers have least competitions which can be huge opportunity for first international firms that are able to break through

sociocultural differences, economic differences, legal/political differences

business that is owned, and usually manages, by a single individual. in terms of law, is extension of owner and company earnings are treated like owner's income. debts company incurs are considered to be owner's personal debts

sole proprietorship

most common type of business organization in the US

sole proprietorship

4 options of business ownership

sole proprietorship, partnership, corporation, limited liability company

common type of divestiture when a company issues stock in one of its own divisions or operating units and sets it up as a separate company (w/ own board of directors and corporate officers). then distributes stock in the new company to its existing stockholders. stockholders then own 2 separate companies rather than 1. stockholders can either buy, sell or hold either or both stocks as seen fit. doesn't generate any additional funds for firm

spin-off

don't look at this during the presentation even though it may calm your nerves and make you feel more comfortable

spot on the back wall

3 launch options for entrepreneurs

starting business from scratch, buying an established business, buying a franchise

5 tips to handling hostility

stay calm and professional, pause before answering, don't reestablish eye contact after answering, may need to agree or disagree if there is follow-up, use body language to reinforce you're done

owners of a C corporation who own shares of stock.

stockholders

an agreement between two or more firms to jointly pursue a specific opportunity without actually merging their businesses. usually involve less formal, less encompassing agreements than partnerships. are popular but can be controversial. often foreign company will connect with local firm to ease its way into market.

strategic alliance

what most HR managers are lacking which lead them to be seen as corporate "black sheep"

strategic skills, business acumen

in comparing the dollar vs euro (EX: $1.00= 1.20 Euros). US travelers to Europe when using their dollars can buy more European goods and services. American firms with European operations will have lower operation costs from buying products to paying workers European exporters will have products that are less expensive in the US so Europe exports more and US imports more

strong dollar

an interviewing approach that involves developing a list of questions beforehand and asking the same questions in the same order to each candidate. helps ensure interviews better predict performance. questions typically behavioral and gear questions towards behaviors and experiences that are key for new position

structured interview

firm being purchased in the acquisition

target firm

4 types of international trade restrictions national governments enforce against international businesses

tariffs, quotas, voluntary export restraints (VERs), embargo

taxes levied against imports. governments tend to use protective ones either to shelter fledgling industries that couldn't compete w/out help or to shelter industries crucial to domestic economy

tarrifs

internet has played powerful role in opening new opportunities for small businesses. companies-of-one can create, sell, publish, and manufacture goods and services more easily than ever before. internet has created international opportunities allowing small businesses to transform into global markets

technology

benefits for organization: 1. lower costs for office space, equipment, upkeep 2. higher employee productivity due to better morale, fewer sick says and more focused performance 3. access to a broader talent pool (not all local) benefits for employee 1. much more flexibility 2. zero commute time 3. better work-family balance 4. every day is casual Friday 5. fewer office politics and other distractions

telecommuting

drawbacks for organization: 1. greater challenges in maintaining a cohesive company culture 2. greater challenges fostering teamwork 3. greater challenges monitoring and managing far-flung employees drawbacks for employees: 1. less fast-track career potential 2. less influence within organization 3. weaker connection to company culture 4. isolation from social structure at work

telecommuting

working remotely- most often from home- and connecting to the office via phone lines, fax machines, or broadband networks. employees able to "commute" to office via technology due to technological advances. leads to increased productivity and direct savings

telecommuting

should be used when: 1. need to either deliver your message or get a response quickly 2. content is more personal or controversial 3. need or want a spontaneous, dynamic dialogue with the recipient

telephone conversation

various sorts of this have been implemented before or after interview process. main categories include: skills, personality, drug, and physical exams. skills and personality carry legal risk since they measure skills and aptitudes that relate directly to job. physical exams standard and highly regulated by state and federal law

testing

should be used when: 1. content is uncontroversial 2. want a quick response regarding relatively simple issues 3. know that your audience won't be annoyed by it

texting

8 communication channels and their richness

texting (very low), memos/reports (very low), email (very low), voice mail (low), telephone conversation (moderate), video conferencing (high), in person presentation (high), face to face meeting (very high)

even when not successful, entrepreneurs seldom label themselves as losers and view not succeeding as a chance to learn

tolerance of failure

explains that entrepreneurs more often than others see world in shades of gray. relates to risk and successful entrepreneurs tend to more willingly accept risk

tolerance of uncertainty

2 basic qualities of entrepreneurs

tolerance of uncertainty, tolerance of failure

variation is key to effectiveness, want to keep lower pitch to encourage listeners to stay with message

tone of voice

ongoing profits usually don't begin for a while for start-up firms, meaning entrepreneurs must plan on some lean months or years as business develops momentum. requires need to manage money wisely and to resist temptation to invest in fixed assets (fancy offices, advanced electronics, etc.) before sufficient regular income allows. requires nerve to stay course despite initial losses

too little money

when balance of trade is out of balance and total value of imports is higher than total value of exports in a given country. signals wealth of economy that can buy huge amount of foreign products but can be destabilizing

trade deficit

occurs when balance of trade is out of balance and total value of exports is higher than total value of imports for given country

trade surplus

group of countries that have reduced or even eliminated tariffs, allowing for the free flow of goods among the member nations

trading blocs

have become an ongoing process rather than one-time activity in successful companies in virtually every field.

training and development

employee separation due to changing business needs

transfer or lay off

5 tips for effective PowerPoints

use pictures and graphics, 7 words per line/7 lines per slide, paraphrase, easy special effects, look at audience/dim screen when not using

companies that fund high-potential new companies in exchange for a share of ownership. invest in start-up businesses with high growth potential in exchange for share of ownership. deals tend to be visible. usually want more of a say in business than other investors, advice and guidance that come with it can be signficant

venture capital firms

a combination of firms at different stages in the production of a good or service, creating a "buyer-seller" relationship. goal is to provide tighter integration of production and increased control over the supply of critical inputs. EX: ATT acquires satellite TV subscription provider, DirecTV

vertical merger

form of off-the-job training where workers are trained on off-site 'real' equipment (e.g. robots). police academies use this training for fire arms

vestibule training

3 types of off-the-job training

vestibule training, job simulation, computer-based training

should be used when: 1. need to reach multiple people with complex or high-priority content 2. need or want a spontaneous, dynamic dialogue with the recipient

videoconferencing

encompasses how most entrepreneurs are wildly excited about their own ideas. find new solutions to old problems and develop products we didn't eve know we needed

vision

most entrepreneurs possess all of these qualities

vision, self-reliance, energy, confidence, tolerance of uncertainty, tolerance of failure

should be used when: 1. content is uncontroversial 2. don't need a record of your message (don't forget message can be saved of forwarded)

voicemail

limitations on the amount of specific products taht one nation will export to another nation. government of exporting country usually imposes these out of fear that importing country would impose even more onerous restrictions

voluntary export restrictions (VERs)

seen when comparing CEO pay to worker pay (large difference b/w 2 in US). public outrage over bonuses and salaries of senior management creating huge difference b/w pay, but if there is a link between pay and performance, public outrage decreases

wage gap

the pay that employees receive in exchange for the number of hours or days that they work. variations can be large. federal minimum is $7.25/hour and can range up to more than $50/hour. jobs requiring less education pay hourly wages. federal law requires companies to pay nonexempt wage earners overtime, 50% more than standard wage, for every hour worked over 40 hours per week

wages

most common compensation systems in US

wages and salaries

in comparing dollar vs Euro (EX: $1.00 = 0.60 Euros) European travelers to US will be able to use their dollars to buy more American goods and services European firms with American operations will have lower operating costs American exporters will have products that are less expensive in Europe so will export more and Europe will import more

weak dollar

group that has made huge strides in workplace. face discrimination in terms of pay and promotions. recent legal changes have made it easier for this group to sue. show challenges by leaving workforce and leaving early for familial reasons, to pursue other interests, or start own companies. leads to ongoing brain drain. can help mitigate through special retention plans for this group and taking proactive steps to returning them to the workforce

women workers

explains how workers have pursued more flexibility and balance in jobs. program promoting this were cut in recession. middle managers demonstrate bias against this. HR managers must work hard to achieve this to satisfy best workers w/out jeopardizing company's business goals

work-life balance

correlation between hours __________ and dollars _____________

worked, earned

permanent global institution to promote international trade and to settle international trade disputes. monitors provisions of the GATT agreements, promotes further reduction of trade barriers and mediates disputes among members. decisions of this institution are binding, so all parties involved in disputes must comply and maintain good standing in the organization

world trade organization (WTO)

group that brings optimism, open minds, technological know-how, team orientation, multi-tasking, and multi-cultural perspective. present challenges with sense of entitlement. leads to high expectations for pay, responsibilities and job flexibility but little willingness to "pay dues". many don't feel they owe loyalty to their companies

young workers