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Principles of Management

Key Terms

Principles of ManagementKey Terms
entrepreneurial activities
The implementation of new ventures and idea generation in organizations.
explicit knowledge
Information codified or written down as rules or guidelines.
followship
The process of seeking or accepting influence.
formal and informal contracts
Used to allow firms to share technology between each other.
franchise agreements
Long-term agreements that involve long payoffs for the sharing of known technology.
innovation
Invention, new product development, and process-improvement methods are all examples of innovation.
joint ventures
Long-term alliances that involve the creation of a new entity to specifically carry out a product/process innovation.
leadership
The action of leading a group of people or an organization.
licensing agreements
Involve technology acquisition without R&D.
management of innovation
Includes both change management and managing organizational processes that encourage innovation.
management of technology
The planning, implementation, evaluation, and control of the organization’s resources and capabilities in order to create value and competitive advantage.
mergers/acquisitions (M&A)
For an acquisition, one firm buys another; for a merger, the two firms come together and form a new firm.
organizational learning
The acquisition of knowledge through the collection of data that is analyzed to gather information, which is then transferred and shared through communication among members of the organization.
research and development (R&D)
Involves the seeking and developing of new technologies, products, and/or processes through creative efforts within the firm.
strategic drift
Occurs when a joint venture loses strategic focus on the reasons for the joint venture.
strategic inertia
The tendency of organizations to continue on their current trajectory.
tacit knowledge
Emerges from experience of an individual.
technology
The branch of knowledge that deals with the creation and use of technical means and the application of this knowledge for practical ends.
value proposition
A promise by a company to a customer or market segment.
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