3.4.1 Corporate influences

Question 1

What 3 things can influence corporates decision making?

Answer 1

corporate culture
stakeholder perspective
Business ethics

Question 2

Define a corporate culture?

Answer 2

the way in which a business decides to go about things e.g. mission statement

Question 3

Define short-termism?

Answer 3

firms who make decisions for the short term

Question 4

What are businesses that use short-termism likely to do? 3

Answer 4

maximise short term profits
invest in less training
return cash to stakeholders

Question 5

what is asset stripping?

Answer 5

buying firms and breaking them up - selling profitable parts for cash and closing down the rest

Question 6

2 drawbacks of shirt-termism?

Answer 6

loss of competitive edge with no investment into future

difficult to recruit high quality staff on short term contracts

Question 7

What are businesses using Long-termism likely to do? 3

Answer 7

recruit high quality staff and invest in training
develop relationship with suppliers
invest in research

Question 8

What is evidence-based decision making?

Answer 8

approach to decision making that involves gathering info and using systematic and rational approach to reach conclusion

Question 9

What is subjective decision making?

Answer 9

approach to decision making where personal opinion is influencing decision

Question 10

What are the 5 stages to evidence based decision making?

Answer 10

identifying objectives 
collecting information and ideas 
analysing info and ideas
implementing decision 
monitoring decision

Question 11

what are 2 adv to using subjective approach rather than evidence-based?

Answer 11

leader is experienced

can be more flexible