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92 Cards in this Set
- Front
- Back
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Ethics |
Code of moral principles and values that govern the behaviors or right and wrong |
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3 domains of human action |
Codified law - enforceable in court Ethics - standard of conduct based on shared principles. Free choice - behavior about which law has no say and about an individual or organization enjoys complete freedom |
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Utilitarian approach |
Moral behavior produces the greatest good for the greatest number of people |
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Individualism |
acts are moral if they promote the individual’s long term interest |
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Moral-rights approach |
Humans have fundamental rights and liberties that cannot be taken away by an individuals decision |
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Justice Approach |
Moral decisions must be based on standards of equity, fairness, and impartiality |
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Distributive justice |
Requires that different treatment of people based on arbitrary characteristics |
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Procedural Justice |
Requires that rules be administrated fairly. Rules should be clear and consistently and impartially enforced. |
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Compensatory Justice |
Argues that individuals should be compensated for their injuries by the party responsible |
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Virtue Ethics Approach |
Moral behavior stems from personal virtues |
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Practical Approach |
Based decisions on prevailing standards, society, and all stakeholders. |
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3 levels of personal moral development and their meanings |
Preconventional - follows rules to avoid punishment. Acts in own interest. Obedience for its own sake. Conventional - lives up to the expectation of others. Fulfills duties and obligations of social system. Upholds laws. Postconventional - Follows self shoo den principles of justice and right. Aware that people hold different values and seeks creative solutions to ethical dilemmas. Balances counsels for individuals as well as the common good. |
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Corporate Social Responsibility (CSR) |
Make choices that contribute to society and stakeholders |
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Stake holders |
Any group within or outside |
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The Green Movement |
- changing in social attitudes - new goverment policies - climate change
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Sustainability |
Economic development that generates wealth and meets the needs of current population while preserving the environment for the needs of future operations |
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Code of Ethics |
A formal statement of the company’s values regarding ethics and social issues |
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Ethical Structure |
Systems, positions, and programs like ethics training |
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Whistle-blowing |
Employee disclosure of illegal, immoral, or illegitimate practices. |
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Entrepreneurship |
The process of initiating a business venture Organizing necessary resources: risk/ reward |
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Definition of a small business |
Independently owned and operated, organized for profit but not dominant in the field |
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5 types of small business owners |
Idealists - rewarded by chance to work on something new and creative Optimizers - get personal satisfaction from being a business owner Hard workers - thrive on the challenge of building a larger, more profitable business. Jugglers - high-energy people who enjoy handling every detail of their own business Sustainers - Enjoy to balance work and personal life. |
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Characteristics of an entrepreneur |
Internal locus in control High energy level Need to achieve Tolerance for ambiguity Awareness of passing time Self-Confidence |
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Social Entrepreneurship |
Social entrepreneurs are people who are committed to both good business and positive social change They create new business models that m,wet critical human needs and solve important problems that remain unsolved by current economic and social institutions |
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Sole proprietorship |
Unincorporated business owned by an individual for profit |
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Partnership |
An unincorporated business owned by two or more people |
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Corporations |
An artificial entity created by the state and existing apart from its owners |
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Debt Financing |
Money that must be repaid: Family and friends Bank Loans/ Finance companies Personal credit cards Wealthy individuals Angel financing |
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Equity Financing |
Money invested by owners or those purchasing stock |
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Franchising |
Is an arrangement to purchase the right to distribute the product or service with the help of the owner |
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Business incubators |
Provide resources to entrepreneurs such as office space, support serves, and legal advice. |
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5 states of growth for a company |
Start up Survival Success Take off Resource maturity |
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Start up |
In the initial stage, the main problem are producing the product or service and obtaining customers. Key issues are attractions enough customers to make money |
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Survival |
The business has demonstrated that it is a workable business entity that produces a product or service and has sufficient customers. Cinders are generating cash flow and making sure revenues exceed expenses. |
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Success |
The company is solidly based and profitable. Systems and procedures are in place that allow the owner to stay involved or consider Turing the business over to managers |
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Take off |
How to grow rapidly and how to finance the growth. The owner must lessen to delegate and the company must find sufficient capital to invest in growth |
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Resource Maturity |
The company has made substantial financial gains and has the staff and resources to develop detailed planning and controlling systems. But may lose the advantage due to small size. |
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Goal |
A desired future state that the organization attempts to realize |
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Plan |
A blueprint for goal achievement and specifies the necessary resources allocations, schedules, tasks, and other actions. |
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Mission Statement |
The overall planning process begins with a mission statement |
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Mission Statement |
The overall planning process begins with a mission statement |
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Organizational mission |
The organizations reason for existence/ the organization’s values and aspirations |
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Strategic Goals |
Official goals, broad statements describing the organization’s future |
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Strategic plans |
Define the action steps the company will take |
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Tactical Goals |
Are the result that major divisions and departments within the organization intend to achieve. Tactical goals apply to middle management and describe what major subunits must do in order for the organization to achieve strategic goals |
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Tactical Plans |
Define what major departments and organizations subunits will do to implement the organization’s strategic plan. They tend to be for a shorter time period. |
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Operational Goals |
Are the specific results expected from departments, work groups, and individuals. |
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Operational Goals |
Are the specific results expected from departments, work groups, and individuals. |
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Operational plans |
Are developed at the lower levels of the organization to specify action plans towards achieving operational goals and to support tactical plans |
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Criteria for effective goal setting |
Specific and measurable Defined time period Choice and clarity Challenging but realistic Linked to rewards |
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Management by objectives (MBO) Process |
1. Set Goals. 2. Develop action plans 3. Review process/ take corrective action 4. Appraise overall performance |
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Single-use plans |
Achieve one-time goal - program: building new headquarters, converting paper files to digital Programs and Projects - Project: renovating the office, setting up a new company intranet |
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Standing Plans |
Ongoing plans Policies, rules, procedures |
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Contingency Planning |
Planning for emergencies, setbacks, or unexpected conditions |
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Buildings Scenarios |
Forecasting technique to look at current trends and visuals future possibilities |
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Crisis Planning |
Sudden, devastating, unexpected events |
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Intelligence Team |
Cross functional group of managers and employees, usually led by a competitive intelligence professional, who work together to gain deep understanding of specific business issues, with the aim of presenting insights, possibilities and recommendations about goals and plans related to that issue. Intelligence teams are useful when the organization confronts a major intelligence challenge |
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Strategy |
A plan of action that describes resources allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining organizational goals |
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Strategy |
A plan of action that describes resources allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining organizational goals |
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Strategic Management |
Decisions and actions used to formulate and execute strategies that will provide competitively superior fit between the organization and its environment to achieve organizational goals |
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Explicit Strategy |
The plan of action |
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Competitive Advantage |
Is the organization’s distinctive edge for meeting customers needs - what a company is good at. |
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Levels of Strategy |
Corporate-level Strategy - what business are we in. EX: PepsiCo Business Level Strategy - how do we compete: EX: Pepsi Cola, Frito-Lay, Quaker Oaks Functional-level Strategy - How do we support business level strategy. EX: Finance, R&D, Manufacturing, and marketing |
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Strategic Managment Process aka SWOT |
Strengths, Weakness, Opportunities, Threats Internal: Strengths and Weaknesses External: Opportunities and threats |
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Formulation |
Assessing the external enviroment and internal problems to create goals and strategy |
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Formulation |
Assessing the external enviroment and internal problems to create goals and strategy |
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Execution |
The use of managerial and organizational tools to direct resources towards accomplishing strategic results |
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SWOT analysis |
Formulating strategy often begins with an audit of internal and external factors Information is acquired from reports, surveys, discussions and meetings |
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SWOT analysis |
Formulating strategy often begins with an audit of internal and external factors Information is acquired from reports, surveys, discussions and meetings |
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Formulating Corporate level strategy |
Strategic business units (SBUs) have a unique mission, products, and competitors Companies manage the mix of SUBs for synergy and competitive advantage Organizations should not become too dependent on one business |
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BCG Matrix |
Organizes business along two dimensions - business growth rate - market share Four categories for corporate portfolio - the combination of high/low market share and high/low business growth |
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Cash Cow |
Milk to finance question marks and stars Low business growth rate/ Low Market share |
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Stars |
Rapid growth and expansion High Market share/ High Business growth |
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Question Marks |
New Venture. Risky - a few become stars, others are divested. Low Market share/ high business growth |
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Dogs |
No investment. Keep if some profit. Consider divestment Low business growth/ Low Market share |
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Diversification Strategy |
Moving into new lines of business - expand into new valuable products and services |
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Diversification Strategy |
Moving into new lines of business - expand into new valuable products and services |
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Unrelated diversification |
Expansion into new lines of business - can be a difficult strategy - many companies are giving up on unrelated diversification |
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Vertical Integration |
Expands into business that supply to the business or are distributors |
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Vertical Integration |
Expands into business that supply to the business or are distributors |
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Formulating Bussiness-Level Strategy |
Strategy within the business units: How do we compete Business-level strategies are developed by Porter’s Five Forces Web Technology is impacting all industries in positive and negative ways |
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Porters 5 forces |
Rivalries among competitor - internet blurs differences among competitors Potential New Entrants - internet reduces barriers of entry Bargaining power of buyers - internet shifts greater power to end consumers Bargaining power of suppliers - internet tends to increase bargaining power of supplies Threat of substitute products - internet creates new substation threats |
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Action Plans used by major departments |
Marketing Production Finance Human Resources R&D |
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Strategic Flexibility |
Managers must be prepared to change and adjust strategy quickly |
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Strategic Partnerships |
Collaboration with other organizations is important |
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Global Strategy |
Organizations pursue a distinctive focus for global business |
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Globalization Strategy |
Treats world as a single global market Standardized global product/advertising strategies
Low need for responsiveness/ High need for global integration |
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Transnational Strategy |
Seeks to balance global efficiencies and local responsiveness Combines standardization and customization for product/ advertising strategies |
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Transnational Strategy |
Seeks to balance global efficiencies and local responsiveness Combines standardization and customization for product/ advertising strategies
High need for responsiveness/ High need for global integration |
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Export Strategies |
Domestically focused Exports a few domestically produced products to select countries Low need for responsiveness/ Low need for global integration |
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Multi domestic |
Handles markets independently for each country Adapts product/advertising to local tastes and needs High need for responsiveness/ low need for global integration |
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Alignment |
Requires all aspects of the organization to focus on strategy goals - everyone moving in the same direction |
