business 3.4 Flashcards
(20 cards)
what is the short termist approach
maximise returns to shareholders
minimum research and development
invest less in human capital
pursue rapid external growth
what is evidence based decision making
involves taking a systematic and facts based approach when determingin objectives, strategy and tactics
evidence based approach layout
identify and set objectives
gather data and ideas
analyse data and ideas
make an evidence based decision
implement decision
monitor and review
What are situations where the subjective based approach may be appropriate
where quick decisions need to be made
where the nature of the industry means that subjective decisions are necessary
where there is a lack of data
what is subjective based decision making
making decisions based on personal opinions and experiences
What is a strong culture
where factors such as attitudes values and beliefs are eassily recognised and embedded into the way that a business operates
what are visual features and norms in a business with a strong culture
visual
figurehead
ceremonies
training culture
norms
orginisational values
business specific approach
what are the four types of orginisational structure
power culture(decision making is carried out by a small number of powerful individuals)
role cculture(key decisions are made by those with specific job roles)
person culture(individuals with extensice experiences and skills are loosely brought together)
task culture(decisions are made by teams made up of employees with specific skills)
What are factors that form a corporate culture
leadership style
type of owenrship
human resource policies
why might a business make changes to its culture
increase productivity
improve innovation
face a particular challenge
follow the direction of a new leader
what are some difficultires in changing established cultures
overcoming resistance to change
existence of subcultures
identifying contributing factors
What are stakeholders
individuals that are effected by the actions of a business
what are some internal stakeholders
employees
managers
business owners
what are some external shareholders
customers
shareholders
creditors
suppliers
local community
government
What is a stakeholder approach
focus on meeting needs of stakeholders by acting socially responsible
what is the shareholder approach
maximising profit to increase dividends
what are ethics
set of values or principles that guide business decisions
What are soem ethical concerns in regard to pay
gender pay gap
minimum wages
executive bonuses
What are some examples of social responsability
sustainable sourcing of raw materials
responsible marketing
protecting environment
responsible customer service
What are some benefits of being socially responsible
enhance business image and reputation
attractive to stakeholders
addsd value for stakeholders
may improve employee motivation
helps recruit strong candidates
