Topic 2 Terms Flashcards
3 P’s of Organizational Performance
Profit, People, Planet
Analytical Competency
The ability to evaluate and analyze information to make actual decisions
Analytics
Systematic gathering and processing of data to make informed decisions
Anchoring/Adjustment Bias
Basing a decision on incremental adjustments from a prior decision point
Asia-Pacific Economic Cooperation (APEC)
Links 21 countries together to promote free trade and investment in the Pacific region
Availability Bias
Basing a decision on recent information or events
Behavioral Decision Model
Describes decision making with limited information and bounded rationality
Benchmarking
Using external and internal comparisons to plan for future improvements
Best Practices
Things people and organizations do that lead to superior performance
Big Data
Exists in huge quantities and is difficult to process without sophisticated mathematical and computing techniques
Big-C Creativity
When extraordinary things are done by exceptional people
Bounded Rationality
Making decisions within the constraints of limited information and alternatives
Budget
Plan that commits resources to projects or activities
Business Intelligence
Taps information to extract and report data in organized ways that are helpful to decision makers
Business Model Innovations
Restructuring of ways firms can make money
Certain Environment
Offers complete information on possible action alternatives and their consequences
Child Labor
The employment of children for work that should be done by adults
Classical Decision Model
Describes decision making with complete information
Cognitive Styles
The ways individuals deal with information while making decisions
Comparative Management
Studies how management practices differ among countries and cultures
Competitive Advantage
Something that an organization does extremely well, is difficult to copy, and that gives it an advantage over competitors in the marketplace
Complacency Trap
Being carried along by the flow of events
Confirmation Error
When the focus is only on information that confirms a decision already made
Conflict Minerals
Those sources in the Democratic Republic of Congo whose sale finances armed groups that perpetuate violence
Contingency Planning
Identifying alternative courses of action to take when things go wrong
Corruption
Engaging in illegal practices to further one’s business interests
Cost-Benefit Analysis
Comparing the costs and benefits of each potential course of action
Creativity
The generation of a novel idea or unique approach that solves a problem
Crisis Decision
Occurs when an unexpected problem arises that can lead to disaster if not resolved quickly and appropiately
Cultural Intelligence
The ability to adapt, adjust, and work well across cultures
Culture Shock
The confusion and discomfort a person experiences when in an unfamiliar culture
Data
Raw facts and observations
Data Mining
The process of analyzing data for patterns useful for decision makers
Data Visualization
Present clear and efficient visualizations of key performance indicators on a real-time basis
Decision-Making Process
Begins with identification of a problem and ends with evaluation of results
Decisions
Choices among possible alternative courses of action
Design Thinking
Creative decision making through a process of experiencing, ideation, and prototyping
Disruptive Innovation
Creating products or services that become so widely used that they largely replace prior practices and competitors
Environmental Capital
The supply of natural resources (atmosphere, land, water, and minerals) that sustain life and produce goods/services for society
Environmental Uncertainty
Lack of information regarding what exists in the environment and what developments may occur
Escalating Commitment
The continuation of a course of action even though it is not working
Ethnocentrism
The tendency to consider one’s culture superior to others
Euro
Common European currency
European Union
The political and economic alliance of European countries
Exporting
Selling local products aboard to foreign customers
False Participation Error
When people are told they have a voice in decision making but no one in authority listens to their inputs
Forecasting
Attempting to predict the future
Foreign Corrupt Practices Act
Makes it illegal for U.S firms and their representatives to engage in corrupt practices overseas
Foreign Subsidiary
Local operation completely owned by a foreign firm
Framing Error
Trying to solve a problem in the context in which it is percieved
Franchising
Paying a fee to a foreign business for rights to locally operate using its name, branding, and methods
Functional Plans
Planning for hoiw different operations within the organization will help advance the overall strategy
General Environment
Consists of the economic, legal, sociocultural, technological, and natural environment conditions in which the organization operates
Generational Cohorts
Consist of people born within a few years of one another and who experience somewhat similar life events during their formative years
Global Corporation
Multinational enterprise or multinational corporation that conducts commercial transactions across national boundaries
Global Economy
Where resources, markets, and competition are worldwide in scope
Global Management
Managing businesses and organizations with interests in more than one country
Global Manager
One who is culturally aware and informed on international affairs
Global Sourcing
When materials or services are purchased around the world for local use
Global Strategic Alliance
A partnership in which foreign and domestic firms share resources and knowledge for mutual gains
Globalization
The growing interdependence among elements of the global economy
Globalization Gap
Where large multinational corporation and industrialized nations gain disproportionately from the benefits of globalization
Goal Alignment
Makes sure that goals throughout an organization are linked together to advance the mission
Goals
Specific results that one wishes to achieve
Green Innovation
Helping to reduce an organization’s negative impact and enhance its positive impact on the natural environment
Greenfield Venture
A foreign subsidiary built from the ground yup by the foreign owner
Heuristics
Strategies for simplifying decision making
Hierarchy of Goals
When lower-level goals and objectives support accomplishment of higher-level goals and objectives
High-Context Cultures
Rely on nonverbal and situational cues as well as on spoken or written words in communication
Importing
The selling in domestic markets of products acquired abroad
Information
Data made useful for decision making
Information Competency
The ability to locate, gather, and organize information for use in decision making
Innovation
The process of taking a new idea and putting it into practice
Incourcing
Job creation through foreign direct investment
Intercultural Competencies
Skills and personal characteristics that help us be successful in cross cultural situations
International Business
A business that conducts for-profit transactions of goods and services across national boundaries
Internet Censorship
The deliberate blockage and denial of public access to information posted on the internet
Intuitive Thinking
Approaching problems in a flexible and spontaneous fashion
Joint Venture
Business subsidiary operating in a foreign country through co-ownership by foreign and local partners
Lack Of Participation Error
The failure to involve in a decision the persons whose support is needed to implement it
Learning Goal
Set targets to create the knowledge and skills required for performance
Licensing Agreement
Pact where a local firm pays a fee to a foreign firm for rights to make or sell its products
Little-C Creativity
Occurs when average people come up with unique ways to deal with daily events and situations
Long Term Plans
Those that typically look three or more years into the future
Loose Culture
Has relaxed social norms and allows conformity by members to vary a good deal
Low-Context Cultures
Emphasize communication via spoken or written words
Management Information Systems
Collect, organize, and distribute data for use in decision making
Masculinity-Femininity
The degree to which a society values assertiveness and materialism
Monochronic Cultures
Where people tend to do one thing at a time
Most Favored Nation Status
Gives a trading partner most favorable treatment for imports and exports
Multidimensional Thinking
The ability to address many problems at once
Non-Programmed Decision
Applies a specific solution crafted for a unique problem
Non-Tariff Barriers
Discourage imports in nontax ways such as quotas and government import restrictions
Offshoring
The outsourcing of jobs to foreign locations
Operational Plan
Identifies short-term activities to implement strategic plans
Optimizing Decision
Chooses the alternative giving the absolute best solution to a problem
Outcome Goal
Sets targets for actual performance results
Participatory Planning
Includes the persons who will be affected by the plans and/or those who will implement them
Performance Opportunity
A situation that offers the chance for a better future if the right steps are taken
Performance Threat
Situation in which something is obviously wrong or has the potential to go wrong
Plan
A statement of intended means for accomplishing objectives
Planning
The process of setting objectives and determining how to accomplish them
Policy
A standing plan that communicates broad guidelines for decisions and action
Political Risk
The potential loss in value of a foreign investment due to instability and political changes in the host country
Political-Risk Analysis
Tries to forecast political disruptions that can threaten the value of a foreign investment
Polychronic Cultures
Where time is used to accomplish many different things at once
Power Distance
The degree to which a society accepts unequal distribution of power
Problem Avoiders
People who ignore information indicating a performance opportunity or threat
Problem Seekers
Constantly process information looking for problems to solve, even before they occur
Problem Solvers
People who try to solve problems when they occur
Problem Solving
Involves identifying and taking action to resolve problems
Procedure
A rule describing actions that are to be taken in specific situations
Process Innovations
Realizations that result in better ways of doing things
Product Innovations
Result in new or improved goods and services
Programmed Decision
Choice that applies a solution from past experience to a routine problem
Protectionism
A call for tariffs and favorable treatments to protect firms from foreign competition
Proxemics
Describe how people use space to communicate
Regional Economic Alliances
Link member countries in agreements to work together for economic gains
Representativeness Bias
Basing a decision on its similarity to other situations
Reshoring
The movement of jobs from foreign locations back to domestic ones
Reverse Innovation
Launched from lower organizational levels and diverse locations, including emerging markets
Risk Environment
One that lacks complete information but offers “probabilities” for the likely outcome for possible action alternatives
Satisficing Decision
The choice of the first satisfactory alternative that comes to one’s attention, though it may not be the best one
Scenario Planning
Identifying alternative future scenarios and making plans to deal with each
Short-term plans
Those that typically cover one year or less
Social Business Innovation
Finding ways to use business models to address important social problems
Southern Africa Development Community
Links 14 countries of southern Africa in trade and economic development efforts
Specific Environment
Includes people and groups with whom an organization interacts
Stakeholders
The persons, groups, and institutions directly affected by an organization
Strategic Opportunism
Focuses on long-term objectives while being flexible in dealing with short-term problems
Strategic Plan
Identifies long-term directions for the organization
Stretch Goals
Performance goals that one must work extra hard and stretch to reach
Structured Problems
Straightforward and clear with respect to information needs
Sustainability
A commitment to protect the rights of present and future generations as co-stakeholders of the world’s resources
Sustainable Business
Organization that operates in ways that meet the needs of customers while protecting or advancing the well-being of our natural enviornment
Sustainable Development
Uses environmental resources to support societal needs today while also preserving and protecting them for future generations
Sweatshops
Businesses that employ workers at very low wages for long hours in poor working conditions
Systematic Thinking
Approaching problems in a rational and analytical fashion
Tactical Plan
Helps to implement all or parts of a strategic plan
Tariffs
Taxes governments levy on imports from abroad
Tax Inversion
Where a US based MNC buys a firm in low-tax country to shield foreign earnings from US taxes
Technological Comptency
The ability to understand new technologies and use them to their best advantage
Tight Culture
Has rigid social norms that members are expected to conform with
Time Orientation
The degree to which a society emphasizes short-term or long-term goals
Transnational Corporations
Global corporations or MNEs that operate worldwide on a borderless basis
Triple Bottom Line
Assesses the economic, social, and environmental performance of organizations
Uncertain Environment
Lacks so much information that it is difficult to assign probabilities to the likely outcome of alternatives
Uncertainty Avoidance
The degree to which a society tolerates risk and unceratinty
Unintended Consequences
Unanticapted positive or negative side effects that result from a decision
Unstructured Problems
Issues that have ambiguities and information deficiencies
USMCA
The United Mexici States Canada Agreement linking these countries in an economic alliance
Vision
Clarifies the purpose of the organization and expresses what it hopes to be in the future
World Trade Organization
Where member nations agree to negotiate and resolve disputes about tariffs and trade restrictions
Zero-Based Budget
Allocated resources as if each budget were brand new
