3.4 influences on business decisions Flashcards Preview

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Flashcards in 3.4 influences on business decisions Deck (21)
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1

what does corporate decision making involve?

- timescale
- ethics
- corporate culture
- stakeholder perspectives

2

what are short term perspectives likely to focus on?

- maximise short term profits
- invest less in R&D and training
- return profits to shareholders
- pursue external growth strategies

3

what are long term perspectives likely to do?

- invest in R&D and training
- focus on profit quality
- take an ethical stance on decision making
- pursue the interest of stakeholders

4

what is corporate culture?`

- includes the traditions, rituals, attitudes and values that make up the way a business is run

5

what are benefits of a strong culture?

- a sense of identity
- a sense of togetherness
- improved commitment from employees
- motivation
- reinforces the values and beliefs

6

what 4 distinct organisational cultures does Charles Handy identify?

- power culture
- role culture
- task culture
- person culture

7

what is power culture?

- a few people drive the organisation and decisions

8

what is role culture?

- people associate with a team or function

9

what is task culture?

- employees associate with a task or project

10

what is person culture?

- employees have a great deal of independence

11

reasons for changing organisational culture?

- a new leader
- poor performance
- corporate objectives
- customer needs

12

what are the problems changing culture?

- long process
- large organisations may have more than one culture
- culture is deep set

13

who are stakeholders?

- groups or individuals who have an interest in a business

14

who are internal stakeholders?

- employees
- shareholder
- managers

15

who are external stakeholders?

- suppliers
- customers
- local communities

16

what is the shareholder concept?

- the belief that the prime function of a business is to satisfy its shareholders

17

what is the stakeholder concept?

- where businesses cater for the needs of all stakeholders, not just shareholders

18

what is ethics?

- the moral principles that guide the behaviours of individuals and behaviours

19

what should ethical decision making consider?

- environment
- workers
- technology
- corruption
- pressure groups

20

what is corporate social responsibility (CSR)?

- the belief a business should act responsibly and protect the interests of all the stakeholders
- going beyond following rules and regulations

21

why is there pressure for effective CSR?

- bad publicity can easily be shared
- ethically orientated customers may choose a business based on its CSR
- good CSR will attract the best employees
- supports long term sustainability