HFT 4224 Exam 4 PRACTICE QUESTIONS
WITH ANSWERS.
reductionism - ignoring the relationship stakeholders have with the business and with
each other
holistic systems intelligence - reflects an advance in both our individual and our
collective consciousness (understand the interdependent relationships business have
with their stakeholders, and stakeholders have with each other)
one of the most important ideas in this book - if you look for trade-offs, you will always
find them
the way to enable accommodating the needs and concerns of all stakeholders - focus
on the value of creation rather than on value division- we should not ask how best we
can distribute the burdens and benefits across the stakeholder, but how we can create
as much value as possible for all of them
cancer - a metaphor for the lack of cooperation within a business and between a
business and its stakeholders
cancer metaphor meaning - if we don't see the interdependencies within the business
then one of the stakeholders could become overly dominant and potentially cancerous,
threatening the well-being of the entire system
three most common types of stakeholder cancers - 1. investors
2. senior management
3. team members
investor cancer - the widespread idea of maximizing shareholder value and profits.
When the investor is seen as the only stakeholder that matters, and the
interdependency and the intrinsic value of the other stakeholder are denied, the
business is at high risk of creating and growing cancer.
senior management cancer - seek to maximize their own compensation without creating
commensurate value
team member cancer - they can sometimes become selfish, damaging the whole
business system of which they are part
Declaration of interdependence - a manifesto created by Whole Foods Founders that
decided what they really care about and defined the values under which they would
operate the business
WITH ANSWERS.
reductionism - ignoring the relationship stakeholders have with the business and with
each other
holistic systems intelligence - reflects an advance in both our individual and our
collective consciousness (understand the interdependent relationships business have
with their stakeholders, and stakeholders have with each other)
one of the most important ideas in this book - if you look for trade-offs, you will always
find them
the way to enable accommodating the needs and concerns of all stakeholders - focus
on the value of creation rather than on value division- we should not ask how best we
can distribute the burdens and benefits across the stakeholder, but how we can create
as much value as possible for all of them
cancer - a metaphor for the lack of cooperation within a business and between a
business and its stakeholders
cancer metaphor meaning - if we don't see the interdependencies within the business
then one of the stakeholders could become overly dominant and potentially cancerous,
threatening the well-being of the entire system
three most common types of stakeholder cancers - 1. investors
2. senior management
3. team members
investor cancer - the widespread idea of maximizing shareholder value and profits.
When the investor is seen as the only stakeholder that matters, and the
interdependency and the intrinsic value of the other stakeholder are denied, the
business is at high risk of creating and growing cancer.
senior management cancer - seek to maximize their own compensation without creating
commensurate value
team member cancer - they can sometimes become selfish, damaging the whole
business system of which they are part
Declaration of interdependence - a manifesto created by Whole Foods Founders that
decided what they really care about and defined the values under which they would
operate the business
