MGT 320 - UW TOD QUIZ 1 STUDY GUIDE
general systems theory - Answers - argues that all organisms that are open to and
interact with their environments and influence eachother
interactive social system - Answers - the closely intertwined relationships between
business and society
shareholder theory of the firm - Answers - Sees the firm as property of owners
(shareholders).
Owners' interests take precedence over interests of others.
The purpose of the firm is to maximize its long-term market value and money for its
shareholders.
stakeholder theory of the firm - Answers - argues that corporations serve a broad public
purpose: to create value for society
3 areguments for the stakeholder model - Answers - descriptive: stakeholder model is
simply a more realistic description of how companies really work
instrumental: stakeholder management is more effective as a corporate strategy EX:
LEGO
normative: stakeholder management is the right thing to do
Market stakeholders - Answers - those that engage in economic transactions with teh
company as it carries out its purose of providing society with goods and services
EX: shareholders, creditors, employeses, suppliers
non market stakeholders - Answers - people and groups who - although they do not
engage in direct economic exchange with the firm - are nonetheless affected by or can
affect its actions
-Gov up for debate
internal stakeholders - Answers - those, such as employees and managers, who are
employed by the firm
external stakeholders - Answers - those who even if they make important transactions
are not directly employed by the firm
role sets - Answers - the multiple different stakeholder roles that some individuals and
groups play
, stakeholder analysis - Answers - the proccess of identifying relevant stakeholders and
understanding their interests and power they may have to assert those interests
focal organization - Answers - the organization from whose perspective the analysis is
conducted
4 key questions for stakeholder analysis - Answers - 1. who are relevant stakeholders
2. what are the interests of each stakeholder
3. what is the power of each stakeholder
4. how are coalitions likely to form
stakeholder interests - Answers - the nature of each group's stake
stakeholder power - Answers - the ability to use resources to make an event happen or
to secure a desired outcome
voting power - Answers - stakeholder has a legitimate right to cast a vote
EX: m&A board of directors. starboard Value LP NY HF bought magallan health and
forced new board/sale of company
voting power
economic power
political power
legal power
informational power - Answers - voting -shareholders
economic- suppliers, customers, employees
political -government laws, regulations, lawsuits
legal - customers, employees, environmentalists
informational power - all
coalition examples - Answers - trans canada keystone pipeline ranchers, farmers, native
americans, environmentalists teamed up to stop pipeline
stakeholder salience - Answers - The degree to which managers give priority to
competing stakeholder claims based on their power, legitimacy, and urgency
legitimacy - Answers - the extent to which the broader society sees a stakeholders
actions as proper and appropriate
stakeholder map - Answers - a visual representation of the relationships among
stakeholder interests, power, and coalitions with respect to a particular issue
EX: suncal wanted to make apartments in FL split coalition disney opposed
boundary spanning departments - Answers - departments or offices within an
organization that reach across the dividing line that separates the company from people
in society
general systems theory - Answers - argues that all organisms that are open to and
interact with their environments and influence eachother
interactive social system - Answers - the closely intertwined relationships between
business and society
shareholder theory of the firm - Answers - Sees the firm as property of owners
(shareholders).
Owners' interests take precedence over interests of others.
The purpose of the firm is to maximize its long-term market value and money for its
shareholders.
stakeholder theory of the firm - Answers - argues that corporations serve a broad public
purpose: to create value for society
3 areguments for the stakeholder model - Answers - descriptive: stakeholder model is
simply a more realistic description of how companies really work
instrumental: stakeholder management is more effective as a corporate strategy EX:
LEGO
normative: stakeholder management is the right thing to do
Market stakeholders - Answers - those that engage in economic transactions with teh
company as it carries out its purose of providing society with goods and services
EX: shareholders, creditors, employeses, suppliers
non market stakeholders - Answers - people and groups who - although they do not
engage in direct economic exchange with the firm - are nonetheless affected by or can
affect its actions
-Gov up for debate
internal stakeholders - Answers - those, such as employees and managers, who are
employed by the firm
external stakeholders - Answers - those who even if they make important transactions
are not directly employed by the firm
role sets - Answers - the multiple different stakeholder roles that some individuals and
groups play
, stakeholder analysis - Answers - the proccess of identifying relevant stakeholders and
understanding their interests and power they may have to assert those interests
focal organization - Answers - the organization from whose perspective the analysis is
conducted
4 key questions for stakeholder analysis - Answers - 1. who are relevant stakeholders
2. what are the interests of each stakeholder
3. what is the power of each stakeholder
4. how are coalitions likely to form
stakeholder interests - Answers - the nature of each group's stake
stakeholder power - Answers - the ability to use resources to make an event happen or
to secure a desired outcome
voting power - Answers - stakeholder has a legitimate right to cast a vote
EX: m&A board of directors. starboard Value LP NY HF bought magallan health and
forced new board/sale of company
voting power
economic power
political power
legal power
informational power - Answers - voting -shareholders
economic- suppliers, customers, employees
political -government laws, regulations, lawsuits
legal - customers, employees, environmentalists
informational power - all
coalition examples - Answers - trans canada keystone pipeline ranchers, farmers, native
americans, environmentalists teamed up to stop pipeline
stakeholder salience - Answers - The degree to which managers give priority to
competing stakeholder claims based on their power, legitimacy, and urgency
legitimacy - Answers - the extent to which the broader society sees a stakeholders
actions as proper and appropriate
stakeholder map - Answers - a visual representation of the relationships among
stakeholder interests, power, and coalitions with respect to a particular issue
EX: suncal wanted to make apartments in FL split coalition disney opposed
boundary spanning departments - Answers - departments or offices within an
organization that reach across the dividing line that separates the company from people
in society
