IB - Midterm Trimester 1 Flashcards
norms
Informal guideline about what is considered normal (what is correct or incorrect) social behavior in a particular group or social unit.
or
Formal rule or standard laid down by legal, religious, or social authority against which appropriateness (what is right or wrong) of an individual’s behavior is judged.
contingency
Bedingtheit
Stakeholder
A person, group or organization that has interest or concern in an organization.
Stakeholders can affect or be affected by the organization’s actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.
Not all stakeholders are equal. A company’s customers are entitled to fair trading practices but they are not entitled to the same consideration as the company’s employees.
An example of a negative impact on stakeholders is when a company needs to cut costs and plans a round of layoffs.
This negatively affects the community of workers in the area and therefore the local economy. Someone owning shares in a business such as Microsoft is positively affected, for example, when the company releases a new device and sees their profit and therefore stock price rise.
Customers are no stakeholders
Campaigning
Campaigning is about creating a change. You might call it influencing, voice, advocacy or campaigning, but all these activities are about creating change.
Advocacy
Advocacy is an activity by an individual or group which aims to influence decisions within political, economic, and social systems and institutions. Advocacy can include many activities that a person or organization undertakes including media campaigns, public speaking, commissioning and publishing research or conducting exit poll or the filing of an amicus brief.
CSR
Corporate social responsibility:
is a type of international private business self-regulation.
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society including economic, social, and environmental. To engage in CSR means that, in the normal course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to it.
CSR in Action — Starbucks
Long before its initial public offering (IPO) in 1992, Starbucks was known for its keen sense of corporate social responsibility, and commitment to sustainability and community welfare. Starbucks has achieved CSR milestones such as reaching 99 percent ethically sourced coffee; creating a global network of farmers; pioneering green building throughout its stores; contributing millions of hours of community service; and creating a groundbreaking college program for its partner/employees. Going forward, Starbucks’s goals include hiring 10,000 refugees across 75 countries; reducing the environmental impact of its cups; and engaging its employees in environmental leadership.
While it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organisations, to mandatory schemes at regional, national and even transnational levels.
Philanthrophy
Philanthropy means the love of humanity.
Support group
In a support group, members provide each other with various types of help, usually nonprofessional and nonmaterial, for a particular shared, usually burdensome, characteristic. Members with the same issues can come together for sharing coping strategies, to feel more empowered and for a sense of community.
line manager
direkter Vorgesetzter
reciprocal
gegenseitig
conscientiousness
gewissenhaft
Green Field Investment
A green field investment is a type of foreign direct investment (FDI) where a parent company builds its operations in a foreign country from the ground up. In addition to the construction of new production facilities, these projects can also include the building of new distribution hubs, offices and living quarters.
Business
organized effort of individuals –> needs of society (profit and non-profit making)
Business in Context Model
Globalization, Environment, Organizational and Strategic level have influence on Business activities
Environmental level
the economy, the state, technology, labour, cultural and institutional influences
Organizational level
goals, structure, ownership, size, corporate climate of firms
Strategic level
management decisions –> influences on direction of business activities
(Range of products, nature of organization)
Business activities
innovation, operations, marketing, human resource management, finance and accounting –> they interact with one-another
Organizational Theory
Organizational theory consists of approaches to organizational analysis. Organizations are defined as social units of people that are structured and managed to meet a need, or to pursue collective goals. Theories of organizations include rational system perspective, division of labour, bureaucratic theory, and contingency theory.
I learn about the systems approach and the contingency approach
The systems approach
The systems approach is a view of business involving two related concepts. First, businesses are made up of a series of interactions, involving business activities, the various aspects of the organization, and aspects of the environment (basically the business in context model). What we identify as a business is the sum total of all these influences and interactions.
Second, the systems approach views business as a series of inputs form the environment, internal processes and eventual outputs.
inputs form the environment (as part of the systems approach)
Materials, labour, methods, finance, technology, information
internal processes (as part of the systems approach)
strategy formulation innovation operations marketing human resources management accounting processes
outputs (as part of the systems approach)
goods, services, profit, information, waste, job (dis)satisfaction, economic growth
The contingency approach (Bedingtheit)
The contingency approach focuses on the relationship between the organization and its environment. It embraces the notion that business activities and the way they are organized are products of the environment in which they operate. The most successful businesses are therefore those that are organized to take advantage of the prevailing environmental influences.
Critique on the contingency and systems approach
don’t take the influence of the firm on the environment and the values and behavior of management and workforce into consideration
Definition of Globalization
- world appears to converge (economically, politically, culturally)
- national borders become irrelevant
- acceleration in technology, travel and communication
- supranational borders (UN, WTO, EU)
- multinational corporations grow
- cyclical variations
Outsourcing
another company carries out part of the process
off-shoring
moving a process to another country
value chain
build-up of value along a supply chain
Producer driven chain
design by originator + production by sub-contractor firms
e.g. Apple
buyer driven chains
chains in low-wage economies + branded to represent retailer
e.g. Nike
Modular chains
have a range of suppliers (car industry=
Captive chains
small suppliers are dependent on large buyers (fresh food ind.)
relation chains
lead firm + suppliers have close relationship (nike nowadays)
MNC
multinational corporation
TNC
transnational corporations
What are MNCs
- headquarter in one country and operations in other countries
- FDI
- globally networked
- management presence overseas
- centrally planned global strategy
Wholly-owned subsidiary
- form of FDI
- acquisition of a firm in another country
- greenfield site operation
Joint venture
- involves an element of shared ownership
- collaboration btw. firms
IJV
international joint venture
Horizontal mergers
- btw. firms which sell similar products
Vertical mergers
- merging firm is either supplier or customer of other
Conglomerate merger
- btw. firms of completely different industries
