Basic Terms

● Intellectual Capital: The value of knowledge and skills a company has through its
employees.
● Globalization: The process of businesses expanding their operations worldwide.
● Career Success: Achieving personal and professional goals in your job or career.
● Ethics: Principles that guide what is right or wrong in behavior.
● Organization: A group of people working together to achieve specific goals.
● Elements of an Organization: Key parts like people, structure, culture, and goals that
help it function.

Finance and Business Operations

● Cost Initiatives: Actions taken to reduce expenses and increase efficiency.
● Human Capital: The skills, knowledge, and experience that people bring to a company.
● Work-Life Balance: Managing work responsibilities while maintaining a healthy
personal life.
● Management Functions: Core tasks of management: planning, organizing, leading, and
controlling.

Planning and Strategy

● Planning: Deciding what to do and how to do it to reach a goal.
● Controlling: Monitoring progress and making adjustments as needed.
● Leading: Motivating and guiding people to achieve goals.
● Planning Process: Steps taken to create a plan, like setting goals and outlining actions.
● Plan: A detailed proposal for achieving an objective.
● Types of Planning:
○ Strategic: Long-term plans for big goals.
○ Tactical: Shorter-term plans for specific actions.
● Forecasting: Predicting future events based on data.
● Benchmarking: Comparing company performance to industry standards.
● Scenario Planning: Preparing for different possible future events.
● Contingency Planning: Making backup plans for unexpected issues.

Decision Making and Strategy

● Strategy: A long-term plan to achieve specific goals.
● Tactical vs Strategic Plan:
○ Tactical: Short-term and specific.
○ Strategic: Long-term and broad.
● Procedures and Policies:
○ Procedures: Steps to follow for tasks.
○ Policies: Guidelines on how to make decisions and act.
● Long-term vs Short-term Plans:
○ Long-term: Goals set for the distant future.
○ Short-term: Goals set for immediate or near future.
● Structured vs Non-structured Problem:
○ Structured: Clear, defined problem with known solutions.
 ○ Non-structured: Unclear, complex problem with no clear solution.

Decision Making Models

● Decision Making: Choosing a course of action from different options.
● Classical Decision Making: Logical approach using known data to choose the best
option.

Entrepreneurship and Business Concepts

● Entrepreneurship: Starting and running a new business.
● First Mover Advantage: Being the first to enter a market and gaining an advantage.
● Serial Entrepreneurship: Starting multiple businesses one after another.
● Social Entrepreneurship: Creating businesses that solve social problems.
● Business Model: How a company makes money and delivers value to customers.
● Franchises/Startups/Family-owned Business:
○ Franchise: Business model where one company (franchisor) lets another
(franchisee) use its brand and business method.
○ Startup: New, innovative company.
○ Family-owned Business: Business managed and owned by a family.
● Characteristics of Entrepreneurship: Creativity, risk-taking, innovation.
● Failure of Entrepreneurship: Business collapse due to poor planning, funding issues,
or market changes.
● Stages of Entrepreneurship: Idea, planning, launching, growth, and maturity.

Global and Cultural Concepts

● Tariffs: Taxes on imported goods.
○ NAFTA: Trade agreement between North America (now replaced by USMCA).
○ EU: European Union, a group of European countries that collaborate
economically and politically.
● Culture: Shared beliefs, values, and practices in a group or society.

Management Theories and Models

● Various Types of Power:
○ Legitimate: Power from a role or position.
○ Reward: Power from giving rewards.
○ Coercive: Power from fear of punishment.
○ Expert: Power from knowledge or expertise.
○ Referent: Power from respect and admiration.
● Visionary, Participative, Charismatic, Servant, Laissez-faire: Leadership styles:
○ Visionary: Inspires with a clear vision.
○ Participative: Involves team input.
○ Charismatic: Attracts and influences others with personal charm.
○ Servant: Focuses on serving the team.
○ Laissez-faire: Minimal management; hands-off style.

Theories and Models

 ● Maslow's Hierarchy of Needs: Theory that human needs are prioritized from basic to
advanced (e.g., food, safety, social, esteem, self-actualization).
● Behavioral vs Classical Approaches to Management:
○ Classical: Focuses on structure, efficiency.
○ Behavioral: Focuses on human needs and motivation.
● Theory X and Y:
○ Theory X: People are lazy and need strict supervision.
○ Theory Y: People are motivated and can work independently.
● SWOT Analysis: Identifying strengths, weaknesses, opportunities, and threats.
● Porter’s 5 Forces Analysis: Analyzes competition in an industry.
● CAGE Analysis: Assesses cultural, administrative, geographic, and economic
differences when expanding globally.
● Competitive Advantage: Unique advantage that sets a company apart from
competitors.
● Mission Statement: Statement explaining a company's purpose and core values.

Other Business Models

● BCG Matrix: A tool to evaluate a company’s product portfolio based on market growth
and market share.
● Bureaucracy: A system with strict rules and hierarchy.
● Matrix Structure: Combines functional and product-based structures.
● Formal vs Informal Network:
○ Formal: Official company structure.
○ Informal: Unofficial relationships between employees.
● Functional, Divisional, Social Network:
○ Functional: Organized by skills.
○ Divisional: Organized by product or region.
○ Social Network: Based on relationships and interactions among people.

1. Stages of Cultural Adjustment:

○ People often go through these stages when adjusting to a new culture:

■ Confusion: Feeling lost or overwhelmed because everything is
unfamiliar.
■ Small Victories: Starting to understand and successfully navigate small
aspects of the new culture.
■ Honeymoon: Feeling excited and fascinated by the new culture.
■ Irritation and Anger: Frustration with differences, like language barriers
or customs.
■ Reality: Accepting and adapting to the culture, finding a balance.
2. Silent Languages of Culture:

○ Culture also speaks in "silent" ways, like communication styles, personal space,
and time management.

○ Context: High vs. Low Context Cultures:

■ High-Context Cultures:
■ Communication is indirect. People rely on body language, tone of
voice, and shared understanding.
■ Relationships and trust are very important.
■ Examples: Japan, China, and India.
■ Example: If someone says, "We'll see," they may mean "no," but
they avoid saying it directly to preserve harmony.
■ Low-Context Cultures:
■ Communication is direct and clear. People say what they mean
without relying on unspoken cues.
■ Efficiency and facts are prioritized over relationships.
■ Examples: United States, Germany, and Canada.
■ Example: If someone says, "No," they mean it directly.
○ Space (Proxemics):

■ This refers to how much personal space people prefer.

■ Close cultures (e.g., Latin America) might feel comfortable standing close
to others.
■ Distant cultures (e.g., Northern Europe) value more personal space.
○ Time:

■ Cultures view time differently:

■ Monochronic: Focus on doing one thing at a time, punctuality is
important. Examples: Germany, USA.
■ Polychronic: Comfortable multitasking and being flexible with
time. Relationships matter more than strict schedules. Examples:
Mexico, India.
 ○ Tight vs. Loose Cultures:

■ Tight Cultures:
■ Strict rules and clear expectations. Deviation is less tolerated.
Examples: Japan, Singapore.
■ Loose Cultures:
■ Fewer rules, more flexibility. People are more accepting of
differences. Examples: Brazil, USA.
○ Hofstede’s Dimensions:

■ Framework to compare cultures. Key dimensions include:

■ Power Distance: How much inequality people accept (e.g., strict
hierarchies vs. equality).
■ Uncertainty Avoidance: Comfort with uncertainty and risk.
■ Individualism-Collectivism: Preference for personal goals vs.
group goals.
■ Masculinity-Femininity: Focus on achievement and competition
vs. caring and quality of life.
■ Time Orientation: Focus on long-term planning vs. short-term
goals.
3. Global Management Learning:

○ Comparative Management: Studies how management practices differ across

cultures. For example, decision-making might be collaborative in Japan but
individual in the US.
○ Intercultural Competencies: Skills like adaptability, communication, and
empathy to work effectively across cultures.
○ Global Managers:
■ Managers who work across different countries must understand cultural
differences and adapt their style to local needs.
○ Global Learning Goals:
■ Recognize that management isn’t "one-size-fits-all."
■ Think critically and adapt strategies to different cultural contexts.