Related Essays

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/85

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

85 Cards in this Set

  • Front
  • Back
What is Entrepreneurship?
The creation of an innovative organization for the purpose of economic gain or growth under conditions of risk or uncertainty
Common Components of Entrepreneurship
1. Something new
2. Something better
3. New delivery system or distribution channel
4. Entering an underserved or new market
Business incubation
a business support process that accelerates the successful development of start-up and fledging companies by providing entrepreneurs with an array of targeted resources and services (The Innovation Center, Voinovich School, ACEnet)
Small business
one that is independently owned and operated and which is not dominant in its field of operation
Business Plan
Describes the basic idea that is the foundation for the start-up and outlines how that idea can be turned into reality
Principle of Affordable Loss
The conscious determination of the amount of resources (money, time, and effort) entrepreneurs are willing to commit to an idea, which, in turn, influences the choice of strategies and methods needed to generate early revenues
What is Corporate Entrepreneurship
The development, promotion, and implementation of innovation initiatives in established firms for the purpose of generating growth and, thus, profits under risky or uncertain conditions
Who Is a Corporate Entrepreneur?
Someone in an organization who champions turning new ideas into profitable realities
What
is Certainty?
1. fully informed about a problem,
2. alternative solutions are known, and
3. the results of each solution are known
What is Risk?
The condition under which individuals can:
1. define a problem,
2. specify the probability of certain events,
3. identify alternative solutions, and
4. state the probability of each solution leading to a result
Probability:
the percentage of times that a specific result would occur if an individual were to make the same decision a large number of times
Objective probability:
the likelihood that a specific result will occur, based on hard facts and numbers
Subjective probability:
the likelihood that a specific result will occur, based on personal judgment
What is Uncertainty?
Condition under which individuals do not have the necessary information to assign probabilities to the outcomes of alternative solutions
Routine Decisions
Standard choices made in response to relatively well-defined and common problems and alternative solutions
Convergence
a business shift in which two connections with the customer that were previously viewed as competing or separate(e.g., brick-and-mortar bookstores and Internet bookstores) come to be seen as complementary
Continuous improvement
a management philosophy that approaches the challenge of product and process enhancements as an ongoing effort to increase the levels of quality and excellence
Innovative Decisions
Choices based on the discovery, identification, and diagnosis of unusual and ambiguous problems and/or the development of unique or creative alternative solutions
Adaptive Decisions
Choices made in response to a combination of moderately unusual problems and alternative solutions
Institutional innovation:
includes the legal and institutional framework for business, such as deregulation
Technological innovation:
creates the possibility of new products, services, and production methods
Management innovation:
major changes in the way organizations are structured and how managers perform their functions
Rational decision:
results in the maximum achievement of a goal in a situation
Bounded Rationality Model
Contends that the capacity of the human mind for formulating and solving complex problems is small compared with what is needed for objectively rational behavior
Foundations of Control
Processes for ensuring that behaviors and decisions conform to an organization’s standards and legal requirements, including its rules, policies, procedures, and goals
Preventive Controls
Mechanisms intended to reduce the likelihood of an unwanted event and thereby minimize the need for corrective action
Forms of Preventive Controls
Rules and regulations
Standards
Recruitment and selection procedures
Training and development programs
Corrective Controls
Mechanisms intended to reduce or eliminate unwanted behaviors or results and thereby return the situation to conformity with the organization’s regulations and standards
Forms of Corrective Controls
Direct supervision and feedback
Disciplinary action
Procedures for reporting misconduct
Monthly or even daily financial reports
Internal Control
A process—effected by an organization’s board of directors, management, and other personnel—designed to provide reasonable assurance regarding the achievement of goals in the various categories
Mechanistic Control Methods
Emphasis on extrinsic rewards (wages, pensions,status symbols)
Distrust of teams, based on an assumption that team goals conflict with organizational goals
Organic Control Methods
Emphasis on both extrinsic and intrinsic rewards meaningful work)
Use of team, based on an assumption that team goals and norms assist in achieving organizational goals
Market Controls
The collection and evaluation of data related to sales, prices, costs, and profits for guiding decisions and evaluating results
Comparative financial
control: evaluation of a firm’s financial condition for two or more time periods
Ratio analysis:
selecting two significant figures (or a combination of a number of figures), expressing their relationship as a fraction or percent, and comparing the value for two or more periods of time
Budgetary control:
the process of monitoring, comparing, and evaluating actual expenditure levels in various categories in relation to budgeted amounts, and making changes as needed during the budget time period
Common Types of Budgets in a Business
Sales,Capital,Materials, R&D, Labor and Cash budget.
Automation:
the use of self-regulating devices and processes that operate independently of people
What is
Corporate Governance?
The pattern of relations and controls between the stockholders, the board of directors, and the top management of a company
Sarbanes-Oxley Act
Eleven major sections dealing with such issues as:
Auditor independence
Corporate responsibility
Conflicts of interest
Certification:
requires CEOs and CEOs of publicly traded companies to personally “testify”/sign that valid financial accounting processes have been established and used
Auditability:
requires companies to develop and publish internal processes so that outsiders can confirm the existence of appropriate controls
Disclosure:
companies must report financial results and material changes in corporate financial condition or operations “on a rapid and current basis”
Calm Waters vs. Permanent Whitewater
Kurt Lewin’s model represents metaphor of calm water
Change from one equilibrium to another
Change comes in short bursts
Peter Vaill argues that we now exist in a state of “permanent whitewater”
No equilibria, only continuous change coming from the environment, directly or indirectly
Organizational change:
any transformation in the design or functioning of an organization
Radical change:
organizations make major innovations in the ways they do business
Incremental change:
ongoing process of evolution over time, during which many small adjustments occur routinely
Tempered radicals:
people who strive to create radical change but do so by prodding an organization to make many small incremental changes
Total quality management:
relies heavily on continuous incremental change
Reactive change:
occurs when an organization is forced to adapt or innovate in response to some event in the external or internal environment
Anticipatory change:
occurs when managers make organizational modifications based on forecasts of upcoming events or early in the cycle of a new trend
Technological Change
Involves incremental adjustments or radical innovations that affect workflows, production methods, materials, and information systems
Restructuring:
reconfiguring the distribution of authority, responsibility, and control in an organization
Reengineering:
radical redesigning of an organization’s functions and business processes
Job simplification:
the scientific analysis of tasks
Job enrichment:
changing job specifications to broaden and add challenge to the tasks required and to increase productivity
Organization Development
A planned, long-range behavioral science strategy for understanding, changing, and developing an organization’s workforce in order to improve its effectiveness
Team building:
process that develops the ability of team members to collaborate effectively so they can perform the tasks assigned to them
Focus group discussion:
a carefully planned discussion among several employees about a specific topic or issue of interest, which is led by a trained facilitator
Technical innovation:
creation of new products, goods and services
Process innovation:
creating a new way of producing, selling, and/or distributing an existing good or service
Administrative innovation:
creating a new organization design that better supports the creation, production, and delivery of goods and services
Managerial innovation:
finding a new way to motivate employees or increase productivity
Specialization:
process of identifying particular tasks and assigning them to departments, teams, or divisions
Division of labor:
work of the organization is divided into smaller tasks
Organization chart:
a diagram that illustrates the reporting lines between units and people within the organization
Hierarchy:
a pyramid showing relationships among levels
Span of control:
the number of employees directly reporting to a person
Vertical Design:
Henri Fayol’s principles
Scalar Chain of Command principle
Unity of command principle
Unity of direction principle
Scalar Chain of Command:
clear and unbroken line of authority and communication from the bottom to the top of the organization chart.
Unity of command principle:
each person should have only one boss
Unity of direction principle:
one person should be in charge of each performance objective and all associated activities
Delegation:
process of giving authority to a person (or group or team) to make decisions and act in certain situations
Barriers to delegation
Failure to define authority and responsibility clearly
Managers fear to delegate to others
Cultural values
Centralization:
concentration of authority at the top of an organization or department
Decentralization:
delegation of authority to lower level employees or departments
Horizontal Design: Functional
Design
Grouping managers and employees according to their areas of expertise and the resources they use to perform their jobs
Vertical Design
Many layers in the hierarchy results in a tall narrow pyramid. Fewer layers results in a flattened, broad pyramid
Product Design
All functions that contribute to a product are organized under one manager
Divides the organization into self-contained units
Geographical Design
Helps to develop competitive advantage in each region according to that area’s customers, competitors, and other factors
Organizes activities around location
Network Design
Subcontracts some or many of its operations to other firms and coordinates them to accomplish specific goals
Sometimes called virtual organizations
Interdependence:
the degree of coordination required between individuals and units to transform information and raw materials into goods and services
Pooled interdependence
little sharing of information or resources among individuals within a unit or among units in the performance of tasks (e.g., golf teams
Sequential interdependence:
the orderly step-by-step flow of information, tasks, and resources from one individual or team to another within the same unit or from one unit to another (e.g., football teams)
Reciprocal interdependence:
the need for every individual and unit to work with every other individual and unit; information and resources flow back and forth freely until the goal is achieved (e.g., volleyball teams)