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Principles of Management > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

everything outside an organization’s boundaries that might affect it

A

external environment

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2
Q

the set of broad dimensions and forces in an organization’s surroundings that determines its overall context

A

general environment

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3
Q

specific organizations or groups that affect the organization

A

task environment

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4
Q

the conditions and forces within an organization

A

internal environment

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5
Q

the overall health and vitality of the economic system in which the organization operates

A

economic dimension

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6
Q

what are important economic factors

A
  • Economic growth
  • inflation
  • interest rates
  • unemployment
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7
Q

the methods available for converting resources into products or services

A

Technological dimension

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8
Q

the government regulation of business and the relationship between business and government

A

Political legal dimension

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9
Q

what are three reasons that the Political legal dimension is important?

A
  • The legal system partially defines what an organization can and cannot do
  • Pro or anti business sentiment in government influences business activity
  • Political stability has ramifications for planning
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10
Q

what is included in the task environment?

A
  • competitors
  • customers
  • suppliers
  • strategic partners
  • regulators
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11
Q

what are the two kinds of regulators?

A
  • regulatory agencies

- interest groups

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12
Q

an agency created by the government to regulate business activities (protect people)

A

regulatory agencies

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13
Q

a group organized by its members to attempt to influence organizations
(Put warning labels on items)

A

interest groups

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14
Q

What does the internal environment consist of?

A
  • Owners
  • Board of Directors
  • Employees
  • Physical Work environment
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15
Q

whoever can claim property rights to an organization

A

owners

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16
Q

who can be considered an owner?

A

a single individual, partners, individual investors, or other organizations

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17
Q

governing body that is elected by a corporation’s stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholder’s interest.

A

Board of Directors

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18
Q

an individual’s personal beliefs about whether a behavior, action or decision is right or wrong

A

ethics

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19
Q

behavior that conforms to generally accepting social norms

A

ethical behavior

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20
Q

behavior that does not conform to generally accepted social norms

A

unethical behavior

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21
Q

standards of behavior that guide individual managers in their work

A

managerial ethics

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22
Q

Some managers pay at minimum wage and others pay a wage more attuned to local conditions known as

A

living wage

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23
Q

a formal written statement of the values and ethical standards that guide a firm’s action

A

Code of Ethics

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24
Q

a law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms’ financial disclosures and imposes tough new measures to deter and punish corporate and accounting fraud and corruption.

A

Sarbanes Oxley Act of 2002

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25
Q

the set of obligations that an organization has to protect and enhance the societal context in which it functions

A

Social Responsibility

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26
Q

what is one argument about the social responsibility of organizations and why?

A
  • that organizations should play a major role in problem solving
  • they have the resources
  • they are citizens of our society
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27
Q

What is another argument for the social responsibility of an organization and why?

A
  • to generate profit
  • involvement in social problems give them too much power
  • conflict of interest
  • businesses lack expertise in social problems
28
Q

what are the three areas of social responsibility?

A
  • stakeholders
  • natural environment
  • social welfare
29
Q

who are stakeholders?

A

customers, employees, and investors

30
Q

what is part of the natural environment?

A

environmentally sensitive products, recycling, and public safety

31
Q

what is a part of the social welfare?

A

charitable contributions, and support for social issues such as child labor and human rights

32
Q

what are the arguments for social responsibility?

A
  • Business creates problems and should therefore help solve problems
  • Corporations are citizens in our society
  • Business often has the resources necessary to solve problems
  • Business is a partner in our society, along with the government and the general population
33
Q

what are the arguments against social responsibility?

A
  • The purpose of business in US society is to generate profit for owners
  • Involvement in social programs gives business too much power
  • There is potential for conflicts of interest
  • Business lacks the expertise to manage social programs
34
Q

What are the degrees of social responsibility?

A
  • Proactive stance (highest)
  • Accommodative stance
  • Defensive stance
  • Obstructionist stance (lowest)
35
Q

how does the government influence business?

A
  • Environmental protection legislation
  • Consumer protection legislation
  • Securities legislation
  • Tax codes
36
Q

how does business influence government?

A
  • Personal contacts and networks
  • Lobbying
  • Political action committees
  • Favors and other influence tactics
37
Q

the extent to which an organization complies with local, state, federal and international laws

A

legal compliance

38
Q

the extent to which an organization and its members follow basic ethical standards of behavior

A

ethical compliance

39
Q

awarding funds or gifts to charities or other worthy causes

A

Philanthropic giving

40
Q

the disclosure by an employee of illegal or unethical conduct on the part of others within the organization

A

whistle blowing

41
Q

what are the different levels of international businesses that organizations take part in?

A
  • Importing and exporting
  • Licensing
  • Strategic Alliances
  • Direct Investments
42
Q

What is the first type of international business that companies tend to gravitate toward?

A

importing and exporting

43
Q

making a product in the firm’s domestic marketplace and selling it in another country

A

exporting

44
Q

bringing a good, service or capital into the home country from abroad

A

importing

45
Q

an arrangement whereby one company allows another company to use its brand name, trademark, technology, patient, copyright or other assets in exchange for a royalty based on sales.

A

licensing

46
Q

a cooperative arrangement between two or more firms for mutual gain by sharing costs and or ownership of a new enterprise

A

strategic alliances

47
Q

a special type of strategic alliance in which the partners share in the ownership of an operation on a equity base

A

joint venture

48
Q

when a firm builds or purchases operating facilities or subsidiaries in a different country from the one where it has its headquarters

A

direct investment

49
Q

light assembly plants that are built in northern mexico close to the US border and are given special tax breaks by the mexican government

A

Maquiladoras

50
Q

what are things managers in international business should be aware of?

A
  • the cultural environment
  • controls on international trade
  • economic communities
  • the role of GATT and WTO
51
Q

what are differences within the cultural environment that managers should be aware of?

A
  • values
  • symbols
  • beliefs
  • languages (words in one language may communicate different in another)
  • colors (colors in one country can portray a different meaning in another country)
52
Q

what are controls in the international environment that managers should be aware of?

A
  • tariffs
  • quotas
  • export restraint agreements
53
Q

a tax collected on goods shipped across national boundaries

A

tariff

54
Q

a limit on the number or value of goods that can be traded

A

quota

55
Q

what is the most common form of trade restriction?

A

quota

56
Q

accords reached by governments in which countries voluntarily limit the volume or value of goods they export to or import from one another

A

export restraint agreement

57
Q

a set of countries that agree to markedly reduce or eliminate trade barriers among member nations (a formalized market system)

A

economic communities

58
Q

what are different economic communities that international business managers should be aware of?

A
  • European Union

- North American Free Trade Agreement

59
Q

the first and most important international market system

A

the European Union

60
Q

an agreement among the United States, Canada and Mexico to promote trade with one another

A

the north american free trade agreement

61
Q

a trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets

A

general agreement on tariffs and trade (GATT)

62
Q

an organization which currently includes 140 member nations and 32 observer countries that requires members to open their markets to international trade and to follow WTO

A

world trade organization

63
Q

what are the three basic goals of the world trade organization?

A
  • Promote trade flows by encouraging nations to adopt nondiscriminatory and predictable trade policies
  • To reduce remaining trade barriers through multilateral negotiations
  • To establish impartial procedures for resolving trade disputes among its members
64
Q

the set of values, belief, behaviors, customs and attitudes that helps the organization’s members understand what it stands for, how it does things, and what is considered important

A

organizational culture

65
Q

people who work for the firm and have a vested interest in its continued operation and existence.

A

employees

66
Q

the organization and the work that people do

A

physical work environment

67
Q

what is the importance of organizational culture?

A
  • Culture determines the overall “feel” of the organization, although it may vary across different segments of the organization.
  • Culture is a powerful force that can shape the organization’s overall effectiveness and long-term success.

Principles of Management (7 decks)

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