BGEN 204, Quiz 1 Prep Notes
BGEN 204, Quiz 1 Prep Notes BGEN 204
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This 6 page Class Notes was uploaded by Tia Goebel on Friday September 9, 2016. The Class Notes belongs to BGEN 204 at Montana State University taught by Mike Shaw in Fall 2016. Since its upload, it has received 25 views. For similar materials see Business and Entreupenership Fundamentals in Business at Montana State University.
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BGEN 204: Business and Entrepreneurship Fundamentals Study Guide and Notes for Quiz #1 Developing a Business Mindset Tia Goebel Review of Ch. 1 from Business in Action Key Terms Business: any profitseeking organization that provides goods and services designed to satisfy customers’ needs Revenue: money a company brings in through the sale of goods and services Profit: money left over after all the costs involved in doing business have been deducted from revenue Competitive Advantage: some aspect of a product or company that makes it more appealing to target customers Business Mindset: a view of business that considers the myriad decisions that must be made and the many problems that must be overcome before companies can deliver the products that satisfy customer needs Answer the following questions 1. Why is the link between risk and reward important? The link between risk and reward is important because businesses must make decisions. Every decision involves some amount of risk and a variety of results, which could be rewards or consequences. Since every decision involves risk, and decisions must be made to produce rewards, risks must be taken to receive rewards. (Side note: When consequences do not fall back on the business that made the causal decision, moral hazard occurs and others experience the consequences of that risk.) 2. What are the three types of businesses? Notforprofit organizations, goodsproducing businesses, and service businesses are the three major types of businesses. 3. Why is it often easier to start a service business than a goodsproducing business? Goodsproducing businesses often have a barrier to entry and are capitalintensive businesses. This means that goodsproducing businesses generally require a great deal of money, equipment, and land to get started up. 4. What are some of the positive and negative aspects of business in society? Positive Negative business offers valuable goods/services business generates pollution and creates provides employment waste pays taxes creates health and safety risks contributes to national growth, stability, and disrupts communities security causes financial instability 5. List and describe the five business environments? Why do you think these are important to recognize as a business person? The five business environments are: social, technological, economic, legal/regulatory, and market. The social environment involves the trends and forces in society at large, such as population trends. The technological environment involves the practical application of science to business innovations, products, and processes. The economic environment involves the conditions and forces that affect the cost and availability of goods, services, and labor, and shape the behavior of customers/buyers. The legal/regulatory environment involves the sum of laws and regulations at local, state, national, and international levels. The market environment involves the customers, buying influences, and competitors of your industry. These environments are important to recognize because they each provide a different lens for analyzing business. They help us understand the big picture. 6. What are the six functional areas of business? List. Which of these appeals to you most? The six functional areas of business are: research development/information technology, manufacturing/production/operations, marketing/sales/distribution/customer support, finance and accounting, human resources, and business services. Human resources and marketing appeal to me the most because I am a people person and I like to help others. 7. Explore several career opportunities in business. Which of the six do you think you may be of interested? Explain. Career opportunities in business include: operations management, human resources specialist, informational technology manager, marketing specialist, sales professional, accountant, and financial manager. Like I said before, I would be most interested in being a human resources specialist or a marketing specialist. 8. How do the steps outlined in the “Achieving Professionalism” relate to the CoB Pride Code (see syllabus)? Professionalism includes: striving to excel, being dependable and accountable, being a team player, communicating well, demonstrating etiquette, making ethical decisions, and staying positive. There is quite a bit of crossover in these two sets of steps. Both codes emphasize respect, high ethics, hard work, and to be an engaged contributor. Review of Ch. 3 from Business in Action Key Terms Ethics: the rules or standards governing the conduct of a person or group Ethical Behavior: actions and attitudes that reflect the ethics governing a person or group, a respect for the common values shared Transparency: the degree to which affected parties can observe relevant aspects of transactions or decisions Code of Ethics: a written statement that sets forth the principles that guide an organization’s decisions WhistleBlowing: the disclosure of information by a company insider that exposes illegal or unethical behavior by others within the organization Ethical Lapse: a situation in which an individual or a group makes a decision that is morally wrong, illegal, or unethical Ethical Dilemma: a situation in which more than one side of an issue can be supported with valid arguments Conflict of Interest: a situation in which competing loyalties can lead to ethical lapses, such as when a business decision may be influenced by the potential for personal gain Corporate Social Responsibility (CSR): the idea that business has obligations to society beyond the pursuit of profits Philanthropy: the donation of money, goods, time, or services to charitable, humanitarian, or educational institutions NGO: (nongovernmental organizations) nonprofit groups that provide charitable services or promote social and environmental causes Strategic CSR: (strategic corporate social responsibility) social contributions that are directly aligned with a company’s overall business strategy Sustainable Development: operating a business in a manner that minimizes pollution and resource depletion, ensuring that future generations will have vital resources ______________________________________________________________________________ Review of Ch. 3 from Business in Action Answer the following questions 1. If you go to work tomorrow morning and your boss asks you to do something you consider unethical, what factors will you take into consideration before responding? (Factors that impact business ethics). 1. Frame the situation correctly. 2. Identify all parties who might be affected. 3. Be objective. 4. Don’t assume other people think the way you do. 5. Watch out for conflicts of interest. 2. List and define the six approaches to resolving an ethical dilemma. Justice – treat people equally. Utilitarianism – choose the option that delivers the most good for the most people. Individual rights – to the greatest possible extent, respect the rights of all individuals. Individual responsibilities – focus on the ethical duties of the individuals involved in the situation. The common good – emphasize the qualities and conditions that benefit the community as a whole. Virtue – emphasize desirable character traits such as integrity and compassion. 3. Is it enough for companies to only have a code of ethics? Explain your answer. A code of ethics won’t have much impact or meaning if it isn’t followed. Therefore, companies should take reasonable steps to teach the code of ethics and reward those that follow the code. This could be done in a number of ways, such as hosting trainings, hiring people carefully, and promoting people that align with the code of ethics. 4. What are the perspectives on CSR? If Company A takes a cynical approach to CSR while Company B takes a proactive approach but the make identical contributions to society, is one company “better” than the other? Why or why not? CSR stands for Corporate Social Responsibility and it is the notion that businesses hold obligations to society besides just making profits. There is philanthropy, which involves donating time, money, or other resources to a cause without expecting direct benefits, and there is strategic CSR, which involves making social contributions that align with a company’s business goal. These are the different perspectives on CSR: Minimalist CSR implies that the only social responsibilities a company has are paying taxes and following the law Defensive CSR implies that a company will only engage in CSR to diffuse negative publicity Proactive CSR means that a company will take a stance on something outside of its incentive to make profit Cynical CSR which treats CSR like a way to claim improvements or changes that haven’t been made Rather than first labeling the company’s approach to CSR and then evaluating their actions, perhaps their actions should define their approach to CSR. If we apply this to the question, both of the companies are either taking part in proactive or cynical CSR (because they made identical contributions), depending on the actions that were taken. 5. Discuss three ways a company can strategically be socially responsible? Which would you incorporate if you were a business owner? A grocery store could host a food drive – this would give people an incentive to buy extra nonperishable food items, as well as help poor families in the community. A hair salon could volunteer at an event that donates funds to cancer victims – by attending the event during normal business hours, employees would still receive compensation, and the event would be a good business promotion opportunity. An athletic clothing store could donate funds to their local trail management office – the donation would help improve the area’s trail systems, as well as encourage people to be more active and need athletic clothing. I would incorporate any of these strategies. 6. Why do you think it is important for a company to balance its social responsibility efforts with its need to generate profits? Without profits, the business would not have the ability to be socially responsible or to engage in solving societal problems. ______________________________________________________________________________ Thinking About Teams Key Terms Groupthink: uniformity of thought that occurs when peer pressures cause individual team members to withhold contrary or unpopular opinions Norms: informal standards of conduct that guide team behavior Agenda: an outline of what is to be covered during a meeting Minutes: notes from previous and current meetings that record important information 1. What is a team? (The following 5 questions include my own personal answers.) A team is a group of people working together toward a collective vision, and each member of the team contributes their fair share of effort to reach the goal. 2. What are the advantages and disadvantages of working in a team? Advantages Disadvantages each member brings their own strengths one person has to do all the work increase efficiency teammates can get too competitive with generate new ideas one another help each other one person could feel like they are progress quicker toward the goal having to compromise too far to fit in motivate each other general dysfunction and wasting time 3. Identify and describe the five characteristics of an effective teams? Model the way – the team treats its members and others in a respectful and uplifting manner. Inspire a shared vision – the team is united in working toward a clear objective. Challenge the process – the team keeps looking for ways to improve and challenge the status quo. Enable others to act – the team actually acts on their values and goals and recruits others to help them accomplish their goal. Encourage the heart – the team stays positive despite challenges and obstacles, celebrates their successes, and expresses a joyful attitude that promotes good work. 4. What are the five stages of team development? Describe each stage. Forming – team members get to know each other, members determine their place on the team, and the team forms an identity. Norming – the team decides on their regular work habits and behavior toward one another. Storming – the team experiences a challenge or becomes dysfunctional. Transforming – the team splits up, fails to overcome the problem, or succeeds and becomes a higherfunction unit. Performing – as individuals, or still as a team, the members are better off than they were before and they continue to overcome challenges. 5. What do you think are the five most important things to consider in order to have an effective meeting? The status of the team members – is everyone engaged and doing their part? Where the team has been – what has happened since the last meeting? How the team is doing – what is our current situation? Where the team is going – how do we get where we want to go? What does the team need – what support is needed to get where we want to go? In sum: (individual status, past, present, future, resources/needs)