Terms & Definitions Flashcards
Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members.
Conceptual and decision skills
Goodwill stemming from your social relationships
Social capital
The effort to minimize the use of resources, especially those that are not polluting and nonrenewable.
Sustainability
One firm buying another
Acquisition
Conditions that prevent new companies from entering an industry
Barriers to Entry
The process of comparing an organization’s practices and technologies with those of other companies
Benchmarking
Companies that stay within a stable product domain as a strategic maneuver
Defenders
A firm selling one or more businesses
Divestiture
The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations
Macroenvironment
A less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed
Bounded Rationality
Model of organizational decision making in which groups with differing preferences use power and negotiation to influence decisions
Coalitional Model
A decision bias influenced by the way in which a problem or decision alternative is phrased or presented
Framing Effects
Model of organizational decision making in which major solutions arise through a series of smaller decisions
Incremental Model
A strategy used to add new businesses that produce related products or are involved in related markets and activities
Concentric Diversification
A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities
Conglomerate Diversification
The acquisition or development of new businesses that produce parts or components of the organization’s product
Vertical Integration
Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States
Caux Principles
Obligation toward society assumed by business
Corporate Social Responsibility (CSR)
Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders
Ecocentric Management
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
Economic Responsibilities
Act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence
Sarbanes-Oxley Act
Parent-company nationals who are sent to work at a foreign subsidiary
Expatriates
A foreign national brought in to work at the parent company
Inpatriate
