U3: AOS1 (Stakeholders + Corporate Culture) Flashcards
What is the Internal environment?
Activities and functions that occur within a business over which it has control.
What is the Operating environment?
Environment immediately external to a business with which it has close interaction when conducting business activities.
What is the Macro environment?
Broad operating conditions in which a business operates but has no control over.
Owners
1) Interest
2) Business environment
1)
- Make a profit
- CSR/Company image
2) Internal
Employees
1) Interest
2) Business environment
1)
- Get paid
- Job security
2) Internal
Customers
1) Interest
2) Business environment
1)
- Obtain goods/services
- Obtain good customer service
2) Operating
Suppliers
1) Interest
2) Business environment
1)
- Ensure customer’s business is profitable
- Get paid
2) Operating
Community/Society
1) Interest
2) Business environment
1)
- Benefit from employment opportunities created by business
- Ensure Business participates in the community
2) Macro
Government
1) Interest
2) Business environment
1)
- Receive taxation revenue from business
- Ensure business adheres to legislation
2) Macro
Competitors
1) Interest
2) Business environment
1)
- Gain competitive edge over business
- Gain more market share
2) Operating
What is Corporate culture?
The system of shared values and beliefs of individuals within a business.
What are the two types of corporate culture?
1) Official corporate culture.
2) Real culture.
What is official corporate culture?
The desired culture a business wishes to establish, visible through company documents, goals, and statements.
What is real culture?
The prevailing culture that exists within a business, observable through the interactions and relationships between people in a business.
4 ways business culture is developed.
1) Management structure (role model + authority)
2) Rewarding employee behaviour
3) Policies (outlines rules/behaviour)
4) Social gatherings with employees
