MGT 302 Ch 2

Standard business practice

A business action that has been widely adopted within an industry or occupation

Cognition

A person's way of perceiving and thinking about their experience

Expert business professionalization

A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry

Basic business competency

Activities that relate to the organizational and business processes of a firm

Industry-specific knowledge

Activities, knowledge, and skills specific to businesses in a particular industry

Certification

An examination based acknowledgement that the firm is owned and operated as specified

Comprehensive planners

Entrepreneurs who develop long-term plans for all aspects of the business

Opportunistic planners

Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it. Once they find a good opportunity, even if it isn't the one related to their original goal, they act on it, so it is very short term in orientation.

Reactive planners

Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts

Competencies

Forms of business-related expertise. The BRIE model helps us focus on those few competencies that are essential to successfully starting and running a business.

Late career (second career) entrepreneurs

People who begin their businesses after having retired or resigned from work in corporations at age 50 or later.

Determination competencies

Skills identified with the energy and focus needed to bring a business into existence

Opportunity competencies

Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business

Resource competencies

The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise

Role conflict

The kind of problem that arises when people have multiple responsibilities such as parent and boss, and the different responsibilities make different demands on them - causes shortage of time.

Time management

The organizing process to help make the most efficient use of the day. Techniques are:

Action

The visible behavior a person takes

Family business

A firm in which one family owns a majority stake and is involved in the daily management of the business. Communication-based integration can be more effective. Typical challenges: Role conflict and Succession

Key business functions

Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources

Prevention focus

An entrepreneur's attention to minimizing losses, with a bias toward inaction or proactive action to prevent loss

Critical-point planners

Entrepreneurs who develop plans focused on the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning

Succession

The process of intergenerational transfer of a business

Specialized business professionalization

A situation that occurs when businesses have founders or owners who are passionate about one or two key business functions, such as sales, operations, accounting, finance, or human resources

Planning success

In terms of getting a start-up launched, keeping it going, and making a living from it, comprehensive planners do the best, followed by critical-point planners, and opportunistic planning types. Reactive and habit planners generally do very poorly in business, even if they manage to get their firms started

Five Ps of Entrepreneurial Behavior

passion, Perseverance, Promotion/prevention (regulatory) focus, Planning style, Professionalization

Promotion focus

An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains

Habit-driven planners

Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines

Set-asides

Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like