Final Exam Study Guide-464

Final Exam Study Guide-464 - 41 Globalization benefits The...

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41. Globalization benefits: The worldwide availability of the Internet and supply-chain logistical improvements, mean that companies can now locate anywhere and work multiple partners to serve any market. To reach economies of scale necessary to schieve the low costs, and thus low process, needed to be competitive, companies are now thinking of the global market instead of national market. 9. Corporate Mission: the purpose or reason for the organization’s existence. It tells what the company is providing to society—either a service or a product. A well defined mission statement defines the fundamental, unique purpose that sets a company a part from other firms of its type and identifies the scope or domain of the company’s operations In terms of products and markets served. 3. Entrepreneurial Strategy Formulation: Strategy is made by one powerful individual. The focus is on opportunities, problems are secondary. Strategy is guided by the founder’s vision of direction and is exemplified by large, bold decisions. The dominant goal is growth of the corporation. 4. Due Care: The obligation of board members to closely monitor and evaluate top management. 28. Outside Directors: sometimes called non-management directors, may be executives of other firms but arte not employees of the board’s corporation. 37. Codetermination: the inclusion of a corporation’s workers on its board, began only recently in the US. 13. Standing Committees of Boards: (in order of prevalence) Audit, Compensation, Nominating, Corporate Governance, Stock Options, Director Compensation and Executive Committee. Except for the Executive, finance, investment committees, board committees are now typically staffed only by outside directors. 21. Milton Friedman on Business Responsibility: “fundamentally subversive doctrine, “There is one and only social responsibility of business—to use its resources and engage in the activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud. 23. Secondary Stakeholders: those who have only an indirect stake in the corporation but who are also affected by the corporate activities. These usually include nongovernmental organizations, activists, local communities, trade associations, competitors, and governments. Because the corporation’s relationship with each of these stakeholders is usually not covered by any written agreements, there is room for misunderstanding. 6. Moral Development Levels: a person’s ethical behavior is affected by his level of moral development, certain personality variables and such situational factors as the job itself, the supervisor, and the organizational culture. The individual moves from total
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self-centeredness to a concern for universal values. (1) Pre-conventional level, (2) Conventional Level, (3) Principle level; Most people are in the conventional level. 25.
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This note was uploaded on 11/30/2010 for the course MGMT 464 taught by Professor Cappel during the Fall '10 term at S.E. Louisiana.

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Final Exam Study Guide-464 - 41 Globalization benefits The...

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