Introduction to Global Management Final Notes
Chapters 2, 3, 5,6,7,8,11, 13 *post-midterm chapters first*
Active Listening: the process of taking action to help someone say exactly what he or
she really means.
Adaptive Organization: operates with a minimum of bureaucratic features and
encourages worker empowerment and teamwork.
Advertising Model: providing free information, generating revenue from paid ads
available to viewers (e.g. Yahoo!, Google)
Angel Investor: a wealthy individual who is willing to invest a portion of this wealth in
return for equity in a new venture.
Authentic Leadership: activates positive psychological states to achieve self-awareness
and positive self-regulation.
Authority Decision: the leader makes the decision alone and then communicates it to
the work group.
Autocratic Style of Leadership: emphasizes task over people, keeps authority and
information within the leader's tight control, and acts in a unilateral command-and-
B2B Business Strategy: Business to Business - uses information technology and Web
portals to vertically link organizations with members of their supply chains.
B2C Business Strategy: Business to Consumer - uses information technology and Web
portals to link organizations with their customers.
BCG Matrix: a portfolio planning approach developed by the Boston Consulting Group
that ties strategy formulation to an analysis of business opportunities according to
industry or market growth rate and market share.
Benchmarking: using external comparisons to better evaluate current performance and
identify possible actions for the future.
Best Practices: a benchmarking technique that involves identifying those things that
help both competitors and non-competitors achieve superior performance Boundaryless Organization: eliminates internal boundaries among subsystems and
external boundaries with the external environment.
Brokerage Model: bringing buyers and sellers together for online transactions and
taking a percentage of sales (e.g. eBay, Amazon)
Budget: a single-use plan that commits resources to activities, projects, or programs.
Bureaucracy: a form of organization based on logic, order, and the legitimate use of
Business Incubator: one way startup difficulties can be managed. special facilities that
offer space, shared administrative services and management advice at a reduced cost.
helps businesses to become financially healthy enough to survive on their own.
Business Plan: describes the direction for a new business and financing needed to
● Capital Needs: amount of funds needed to run the business, amount
available, and amount requested from new sources
● Company Description: mission, owners and legal form
● Executive Summary: overview of business purpose and highlight of the
key elements of the plan
● Financial Projection: cash flow projections for one to five years, break-
even points, and phased investment capital
● Industry Analysis: nature of the industry, including economic trends,
important legal or regulatory issues, and potential risks
● Market Description: size of market, competitor strengths and weaknesses,
five year sales goals
● Marketing Strategy: product characteristics, distribution, promotion, pricing
and market research
● Milestones: a timetable of dates showing when key stages of new venture
will be completed
● Operations Description: manufacturing or service methods, supplies and
suppliers, and control procedures
● Products & Services Description: major goods or services, with
● Staffing Description: management and staffing skills needed and
available, compensation and human resource systems Business Strategy: a strategy that sets the strategic direction for a single business unit
or product line.
Centralization: the concentration of authority for most decisions at the top levels of an
Chain of Command: the line of authority that vertically links each position with
successively higher levels of management.
Channel Richness: the capacity of a channel or communication medium to carry
information in an effective manner
Charismatic Leader: a leader who develops special leader-follower relationships and
inspires others in extraordinary ways.
Coercive Power: the capability to punish or withhold positive outcomes as a means of
influencing other people.
Combination Strategy: pursues growth, stability, and/or retrenchment in some
Communication: an interpersonal process of sending and receiving symbols with
messages attached to them.
Communication Channel: the medium through which a message is conveyed from
sender to receiver.
Community Model: provide meeting point sold by subscription supported by advertising
(e.g. social media, public broadcasting, Wikipedia)
Competitive Advantage: operating with an attribute or set of attributes that allows an
organization to outperform its rivals.
Complacency Trap:is being carried along by the flow of events.
Concentration:growth that occurs through expansion within the same business area.
Consultative Decision: the leader makes the decision after asking group members for
information, advice, or opinions. Contingency Planning: identifies alternative courses of action that can be implemented
to meet the needs of changing circumstances.
Co-opetition: the strategy of working with rivals on projects of mutual benefit.
Core Competency: a special strength that the organization has or things that it does
exceptionally well in comparison with competitors.
Core Values: broad beliefs about what is or is not appropriate behaviour.
Corporate Governance: the system of control and performance monitoring of top
management that is maintained by boards of directors and other major stakeholder
Corporate Strategy: a strategy that directs the organization as a whole toward
sustainable competitive advantage.
Corporation: a legal entity that exists separate from its owners.
Cost Leadership Strategy: seeks to operate with low cost so that products can be sold
at low prices.
Credible Communication: earns trust, respect, and integrity in the eyes of others.
Cross-functional Teams: a team structure that is composed of members from different
areas of work responsibility.
Customer Structure: a divisional organization structure that groups together jobs and
activities that serve the same customers or clients.
Debt financing: involves going into debt by borrowing money from another person, a
bank, or financial institution and repaying it over time with interest.
Decentralization: the dispersion of authority to make decisions throughout all levels of
Delegation: the process of entrusting work to others by giving them the right to make
decisions and take action. Democratic Style: committed to both task and people, getting things done while sharing
information, encouraging participation in decision-making, and helping people develop
their skills and capabilities.
Departmentalization: the process of grouping together people and jobs into work units.
Differentiation: the degree of difference between subsystems in an organization.
Differentiation Strategy: offers products that are unique and different from the
Diversification: growth that occurs through the acquisition of or investment in new and
sometimes different business areas.
Divestiture: selling off parts of the organization to refocus on core competencies, cut
costs, and improve operating efficiency.
Divisional Structure: an organizational structure that groups together people who work
on the same product or process, serve similar customers, or are located in the same
area or geographical region.
Downsizing: an action that reduces the size of operations with the intent of reducing
costs and improving operating efficiency.
E-business Strategy: the strategic use of the Internet to gain competitive advantage.
Effective Communication: the intended meaning is fully understood by the receiver...
also occurs at minimal cost
Electronic Grapevine: use electronic media to pass messages and information among
members of social networks.
Emergent Strategy: a strategy that develops progressively over time in the "streams" of
decisions managers make as they learn from and respond to work situations.
Emotional Intelligence: the ability of people to manage themselves and their
Empowerment: allows others to make decisions and exercise discretion in their work. Empowerment (process): through which managers enable and help others to gain
power and achieve influence within the organization.
Entrepreneur: a risk-taking individual who takes action to pursue opportunities and
situations others may fail to recognize as such or may even view as threats.
Entrepreneurship: describes strategic thinking and risk-taking behaviour that results in
the creation of new opportunities.
Equity-Based crowdfunding:involves new ventures going on-line to sell equity stakes in
their businesses to crowds of small angel investors.
Equity Financing:involves exchanging ownership shares in the business to outsiders in
return for outside investment monies.
Expert Power: the capacity to influence the behaviour of other people because of one's
knowledge and skills.
Family Business: a business that is owned and financially controlled by family members.
Family Business Feud:occurs when family members have major disagreements over
how the business should be run.
Feedback: the process of telling others how you feel about something they did or said or
about the situation in general.
Filtering: the intentional distortion of information to make it appear favourable to the
First-mover Advantage: exploiting a market niche or entering a market before
Focused Cost Leadership: a strategy that seeks the lowest costs of operations within a
special market segment.
Focused Differentiation: a firm sells a unique product to a special niche market
Focus Strategy: concentrates on one special market segment and tries in that segment
to be the provider with lowest costs. Forecasting: the process of making assumptions about what will happen in the future.
Formal Structure: the structure of the organization in its official state.
Franchise: a business owner sells to another person the right to operate the same
business in another location, under the original owner's business name and guidance.
Franchising: a form of licensing in which a foreign firm buys the rights to use another's
name and operating methods in its home country
Freemium Model: offer free service and encourage users to buy additional services (e.g.
Functional Chimneys Problem: the lack of communication, coordination, and problem
solving across functions.
Functional Plans: indicate how different operations within the organization will help
advance the overall strategy.
Functional Strategy: a strategy that guides the use of resources to implement business
strategy; this level of strategy focuses on activities within a specific functional area of
Functional Structure: people with similar skills and performing similar tasks are grouped
together into formal work units.
Gender Similarities Hypothesis: holds that males and females have similar
Geographical Structure: a divisional organization structure that groups together jobs and
activities being performed in the same location or geographical region.
Globalization Strategy: views the world as one large market, trying as much as possible
to standardize products and their advertising for use everywhere.
Group Decision: is made by the group with the leader's support as a contributing
member. Growth Strategy: a strategy that seeks an increase in size and the expansion of current
Hierarchy of Goals: lower-level objective are a means to accomplishing higher-level
Hierarchy of Objectives: a means-ends chain in which lower-level objectives (the
means) lead to the accomplishment of higher-level objectives (the ends).
Human Relations Style: emphasizing people over task
Improvement Objectives: describe intentions for specific performance improvements.
Infomediary Model: provide free service in exchange for collecting info on users and
selling it to other businesses
Informal Structure:a "shadow" organization made up of unofficial, but often critical,
working relationships between organization members.
Initial Public Offering (IPO): an initial selling of shares of stock to the public at large.
Integration:the level of coordination achieved between subsystems in an organization
Integrity: in leadership is honesty, credibility, and consistency in putting values into
Interactive Leadership: leaders are strong communicators and act democratic and
participative with followers.
Internet Entrepreneurship: is the use of the Internet to pursue an entrepreneurial
Laissez-faire style of Leadership:shows little concern for task, lets the group make
decisions, and acts with a "do the best you can and don't bother me" attitude.
Leadership: the process of inspiring others to work hard to accomplish important tasks.
Leadership Style: the recurring pattern of behaviours exhibited by a leader. Least-preferred co-worker scale: used in Fiedler's contingency model to measure a
person's leadership style.
Legitimate Power: the capacity to influence other people by virtue of formal authority, or
the rights of office.
Life Cycles of Entrepreneurial Firms: Birth
-----> struggles to get new venture established and survive enough to test viability of
underlying business model in the marketplace
Life Cycles of Entrepreneurial Firms: Breakthrough
-----> where business model begins to work well, growth is experienced, and complexity
of managing business expands significantly
Life Cycles of Entrepreneurial Firms: Maturity
-----> advances of market success and financial stability, while facing continuing
management challenges of remaining remaining competitive in the changing
Limited Liability Corporation (LLC): a hybrid legal form of business
combining advantages of a sole proprietorship or a partnership with the liability
advantages of a corporation.
Liquidation: a retrenchment strategy where a business ceases and assets are sold to
Management by Objectives (MBO): a structured process of regular communication in
which a supervisor/team leader and subordinates/team members jointly set
performance objectives and review results accomplished.
Management By Wandering Around (MBWA): involves dealing directly with
subordinates by regularly spending time walking around and talking with them about a
variety of work-related matters.
Matrix Structure: an organizational form that combines the functional and divisional
structures in an attempt to gain the advantages and minimize the disadvantages of
Mechanistic Design: centralized design, with many rules and procedures, a clear-cut
division of labour, narrow spans of control, and formal coordination. Merchant Model: selling products online directly to consumers through web
Mission: an organization's reason for existing in society.
Mixed Message: occurs when a person's words communicate one message while
his/her actions, body language, appearance, or situational use of interpersonal space
communicate something else.
Moral Leadership:leadership by ethical standards that clearly meet the test of being
"good" and "correct."
Multi-domestic Strategy: tries to customize products and their advertising as much as
possible to fit the local needs of different countries or regions.
Necessity-based Entrepreneurship: takes place because other employment options
Network Structure: an organizational structure that consists of a central core that is
linked through networks of outside relationships with outside contractors and suppliers
of essential services.
Non-verbal Communication: takes place through such things as hand movements, facial
expressions, body posture, eye contact, and the use of interpersonal space.
Objectives: the specific results or desired end states that one intends to achieve.
Operating Objectives: specific results that organizations try to accomplish.
Operational Plans: define what needs to be done in specific areas to implement
Organic Design: decentralized design with fewer rules and procedures, open divisions
of labour, wide spans of control, and more personal coordination.
Organizational Culture: reflects the predominant value system of the organization as a
Organizational Design: the process of creating structures that accomplish mission and
objectives. Organization Chart: a diagram that describes the reporting relationships and formal
arrangement of work positions within an organization.
Organization Structure: the system of tasks, workflows, reporting relationships, and
communication channels that link together the work of diverse individuals and groups.
Organizing: the process of arranging people and other resources to work together to
accomplish a goal.
Participatory Planning: requires that the planning process include people who will be
affected by the resulting plans and/or will be asked to help implement them.
Partnership: formed when two or more people agree to contribute resources to start and
operate a business together.
Personal Development Objectives: describe intentions for personal growth through
knowledge and skills development.
Persuasive Communication: presents a message in a manner that causes the other