Name Florentina COVACI BUSN 1010 Business Enterprise Exam 2 Study Guide Chapter 6 Entrepreneurship and Starting a Small

ll Business Entrepreneurship - accepting the risk of staring and running a business Managing risk take calculated risk Business plan a detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relations to the competition, and the resources and qualifications of the owner(s). Intrapreneurship practice of entrepreneurship in an established firm Executive summary management summary of the proposed venture. Includes a short description of the business, major goals and objectives. Should capture the attention of lenders. Characteristics of successful entrepreneurs self-directed and selfdisciplined, self-nurturing, action-oriented, highly energetic, tolerant of uncertainty. Angel investors - affluent individuals who provides capital for a business startup, usually in exchange for convertible debt or ownership equity. Venture capitalists individuals or companies that invest in new businesses in exchange for partial ownership of these businesses. SCORE Service Corps of Retired Executives - an SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses) Hurdle(s) that small business face when exporting products/services to global markets financing harder to find, would be exporters do not know how to get started and do not understand the cultural differences between markets and the bureaucratic paperwork can threaten to bury a small business. Outlook for small businesses in international markets more lucrative than US domestic markets SBA Small Business Administration a US government agency that advises and assists small businesses by providing management training and financial advice and loans.

Chapter 7 Management and Leadership Todays progressive managers focus on - teamwork and cooperation Functions of management planning, organizing, leading, controlling

Leadership characteristics common sense, flexibility, communication, courage & tenacity, humility, integrity, fairness, optimism and self-confidence. Controlling function of management a management function that involves establishing clear standards to determine whether or not an organization is progressing towards its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not. Vision statement an encompassing explanation of why the organization exists and where it is trying to head. Mission statement an outline of the fundamental purposes of an organization. SWOT analysis a planning tool used to analyze organizations strengths weaknesses, opportunities and threats Contingency planning a process of preparing alternative courses of action that may be used if the primary plans do not achieve the organizations objectives. Downsizing elimination of jobs Technical skills - ability to perform tasks in a specific discipline or department Participative management style leadership style that consists of managers and employees working together to make decisions. Free-rein leadership leadership style where managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

Chapter 8 Adapting Organizations in Todays Markets Reorganization/reengineering of an organization downsizing and redesigning a company Organizational hierarchy chart a standard chart with managers for major for major functions and supervisors reporting to managers. Shows relationships on jobs. Economies of scale the situation in which companies can reduce their production costs if they can produce raw materials in bulk; the average cost of goods goes down as production level increase. Bureaucratic organization an organization with many layers of managers who set rules and regulations and oversee all decisions. Decentralization decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be. Tall organizational structure an organization structure in which the pyramidal organization chart would be quite tall because of the various level of management. Benefit of flat organizations vs. tall organizational structures flat structure can respond readily to customer demands because lower-level

employees have authority and responsibility for making decisions, and management can be spared day to day tasks. Few layers of management and broad span of control. Staff personal employees who advise and assist line personnel in meeting their goals. Benchmarking comparing an organizations practices, processes and products against the worlds best. Core competencies those functions that the organization can do as well as or better than any other organization in the world. Outsourcing contracting with other companies (often in other countries) to do some or all of the functions of a firm, like its production or accounting tasks. Chapter 9 Production and Operations Management of Goods and Services Trends in the U.S. manufacturing sector innovative techniques to gain competitive edge Current trend in the U.S. service sector growing more rapidly than the manufacturing sector Current economic trends during the Great Recession of 2008 2009 less jobs in manufacturing sector Quality standards in the service sector ISO9000 Lean manufacturing the production of goods using less of everything compared to mass production. Just-in-time JIT just in time inventory control a production process in which a minimum of inventory is kept on the premises and parts, supplies and other needs are delivered just in time to go on the assembly line. Deming cycle a quality control approach to find potential errors before they happen.

Chapter 10 Motivating Employees Theory X managers give workers little responsibility, authority or flexibility. Theory Y rather than authority, direction and close supervision, managers emphasize a relaxed managerial atmosphere, in which workers are free to set objectives, be creative, and be flexible and go beyond the goals set by management. Theory Z long term employment, collective decision-making, individual responsibility for the outcome of decisions, slow evaluation and promotion, moderately specialized carrier path, and holistic concern for employees (including family). Type A American type, include focus on individual rights and achievements

Management by objectives a system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors and employees. Coaching teaching, guiding and recommending Job rotation - a job enrichment strategy that involves moving employees from one job to another.