Terms & Definitions

Question 1

Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members.

Answer 1

Conceptual and decision skills

Question 2

Goodwill stemming from your social relationships

Answer 2

Social capital

Question 3

The effort to minimize the use of resources, especially those that are not polluting and nonrenewable.

Answer 3

Sustainability

Question 4

One firm buying another

Answer 4

Acquisition

Question 5

Conditions that prevent new companies from entering an industry

Answer 5

Barriers to Entry

Question 6

The process of comparing an organization’s practices and technologies with those of other companies

Answer 6

Benchmarking

Question 7

Companies that stay within a stable product domain as a strategic maneuver

Answer 7

Defenders

Question 8

A firm selling one or more businesses

Answer 8

Divestiture

Question 9

The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations

Answer 9

Macroenvironment

Question 10

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

Answer 10

Bounded Rationality

Question 11

Model of organizational decision making in which groups with differing preferences use power and negotiation to influence decisions

Answer 11

Coalitional Model

Question 12

A decision bias influenced by the way in which a problem or decision alternative is phrased or presented

Answer 12

Framing Effects

Question 13

Model of organizational decision making in which major solutions arise through a series of smaller decisions

Answer 13

Incremental Model

Question 14

A strategy used to add new businesses that produce related products or are involved in related markets and activities

Answer 14

Concentric Diversification

Question 15

A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities

Answer 15

Conglomerate Diversification

Question 16

The acquisition or development of new businesses that produce parts or components of the organization’s product

Answer 16

Vertical Integration

Question 17

Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States

Answer 17

Caux Principles

Question 18

Obligation toward society assumed by business

Answer 18

Corporate Social Responsibility (CSR)

Question 19

Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders

Answer 19

Ecocentric Management

Question 20

To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors

Answer 20

Economic Responsibilities

Question 21

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

Answer 21

Sarbanes-Oxley Act

Question 22

Parent-company nationals who are sent to work at a foreign subsidiary

Answer 22

Expatriates

Question 23

A foreign national brought in to work at the parent company

Answer 23

Inpatriate