3.4 - Influences on business decisions Flashcards
Corporate timescales - what is a short term attitude
- focus on share price
- boosting short term profits
- focus on external growth
Corporate timescales - what is a long term attitude
- long term investment
- focus on research & development and staff training
- focus on interests of stakeholders
What are the 4 classes of company culture
Power
Role
Task
Person
What is power culture
- 1 person is dominant and drives the business
- common in small businesses
What is role culture
- people have set rules
- clear hierarchy (power is determined by an individual’s role
- lacks flexibility
What is task culture
- teams set up to complete project/goal
- power shifts depending on nature of the task
What is person culture
- professional groups eg doctors/barristers
- serves individual needs
Why may company culture change
- new leader
- poor performance
- corporate objectives not being met
What’s the challenges of changing culture
- long process
- difficult due to deep rooted cultures
What are features of a strong company culture
- focusing on customers
- good staff morale/working together
- employee commitment/loyalty
What are features of a weak company culture
- lack of trust in staff/doubting company ethics
- staff looking for new jobs
What is CSR
corporate social responsibility
The belief that a business should act responsibly and ethically
What are ways businesses can implement CSR
- fair prices
- good working conditions
- honesty/transparency
What is a benefit and a drawback of evidence based decision-making (data)
B - data can help reduce the risk and help identify the likely outcome
D - data can be hard or expensive to collect and maybe out of date or unreliable
What is a benefit and a drawback of subjective based decision-making (intuition)
B - can come from experienced managers who have a lot of useful
D - without evidence intuition will be risky
