3.4 - Influence of Business Decisions Flashcards
(21 cards)
Evidence based decision making
Involves gathering info and using a systematic and rational approach to reach a conclusion
Long-terminism
Time period where decisions have an impact of vision, mission and objectives - typically longer than five years
Short-termism
Where business and managers are focussed on quick financial rewards, such as quarterly profit or sales figures, often at the expense of investment in important areas
Subjective decision make
Incorporate aspects such as CSR and ethical behave
Corporate culture
Unwritten code of conduct that reflects values and embodies shared beliefs and assumptions that underpin decision-make process
Culture
Shared attitudes, customs, expectations
Person culture
No of indv who have expertise, but don’t necessarily work together
Power
Central source of power responsible
Rome
Well established rules and procedures
Strong
Deeply embedded within b and employees
Task
Allows teams to focus on particular task within broad remit of overall aim
Weak
Needs put before customer, staff turnover high and mistakes about blame
External stakeholders
Groups outside with interest in activities
Internal stakeholders
Include employees, managers, board of directors and owners
Shareholder approach
Focus purely on shareholder returns
Shareholders
Owners of comp who have taken risk by investing their capital
Stakeholder approach
Consider ALL stakeholders
Stakeholders
People or groups who have an interest in actions. Inc customers, suppliers, local comm, pressure groups, local and central gov
Capital employ
Non-current liability + total equity
CSR
When b pays attention to impact comp actions have on social and environmental issues and the impact on a range of stakeholders, not just share
Ethics
Moral principles that determine how decisions are made and may include providing good working conditions, fair pay and assessment of environmental impacts
