3.4 Influences on Business Decisions Glossary Flashcards
(26 cards)
Asset Stripping
The practice of buying businesses and breaking them up. The profitable parts are sold for cash and the rest are closed down.
Evidence-Based Decision
An approach to decision making that involves gathering information and using a systematic and rational approach to reach a conclusion.
Making
The time period where decisions have an impact on the vision, mission and objectives of a business-typically longer than five years.
Long Term
The time period where decisions have an impact on the vision, mission and objectives of a business-typically longer than five years.
Short Term
The time period where decisions only have an impact on the operations activities of a business-typically less than five years.
Strategic Decisions
Decisions concerning policy that can have a long-term impact on a business. Can be risky.
Subjective Decision Making
An approach to decision making where the personal opinions of the key decision maker strongly influence the course of action chosen.
Cultural Dimensions
A set of characteristics that form the international context of business culture.
Organisational, Organisation, Corporate or Business Culture
The values, attitudes, beliefs, meanings and norms that are shared by people and groups within an organisation.
Strong Culture
A culture where the values, beliefs and ways of working are deeply embedded within the business and its employees.
Weak Culture
Difficulties in identifying the factors that form the culture or where a wide range of sub-cultures exist making the culture difficult to define.
Power Culture
One where there is a central source of power responsible for decision making
Role Culture
Decisions are made through well-established rules and procedures, power is associated with a role rather than with an individual.
Task Culture
Power is given to those who can accomplish tasks; power therefore lies within expertise rather than with a role.
Person Culture
A culture where there are a number of individuals in the business who have expertise, but who don’t necessarily work together particularly closely.
External Stakeholders
Groups outside a business with an interest in its activities.
Internal Stakeholders
Groups inside a business with an interest in its activities.
Shareholder Value
A measure of company performance that combines the size of dividends with the share price.
Stakeholders
Those with an interest in the activities of a business.
Corporate Social Responsibility (CSR)
A business assessing and taking responsibility for its effects on the environment and its impact on social welfare. It involves the idea that businesses bear a responsibility that stretches beyond their shareholders.
Ethical codes of practice
Statements about how employees in a business should behave in particular circumstances where ethical issues arise.
Ethics
In the context of business ethics, consideration of the moral and “rights and wrongs” of a decision at an often strategic level, in accordance with the law, and a business’s code of conduct in relationship to Corporate Social Responsibility.
Living Wage
An hourly rate of pay based on the basic cost of living, set independently of government and updated annually.
National Minimum Wage
The minimum pay per hour all workers are entitled to by law.
