3.1

Question 1

Adv of evidence based decision making

Answer 1

-facts that can be verified making it easier to justify to others
-validated decision-making tools

Question 2

Dis adv of evidence based decision making

Answer 2

-can take long time to reach decision
-different interpretations may be possible
-focusing too heavily on evidence might lead to firm overlooking other decisions

Question 3

Adv subjective decision making

Answer 3

Decisions made quickly
Used when there’s a lack of data

Question 4

Dis adv subjective decision making

Answer 4

Peoples opinion may be wrong/biased
Difficult to justify decision
Don’t fully consider long term consequences

Question 5

Corporate culture

Answer 5

Way that people do things ina firm and the way they expect things done.
Shapes expectations and attitudes of staff

Question 6

Why id a strong corporate culture good?

Answer 6

Employees need less supervision
Increased loyalty
Lower staff turnover and increased motivation

Question 7

What is a power culture?

Answer 7

Centralised structure where decision making is limited to one person or a few people

Question 8

What is a role culture?

Answer 8

Authority is defined by job title
Decisions come from senior managers so employees don’t get a say

Question 9

Person culture

Answer 9

Common in loose organisations of individual workers usually professional partnerships e.g doctors
Objectives are by personal ambitions

Question 10

Task culture

Answer 10

Emphasis on getting tasks done
Gathers small teams for a project then disbands them

Question 11

Stakeholder

Answer 11

Anyone who is affected by a business

Question 12

4 ethical issues a business may have to deal with

Answer 12

Location- e.g labour costs might be cheaper overseas
Suppliers- need consider their ethical stance of suppliers. E.g suppliers exploiting their workers to keep prices low
Bribery and Corruption- some markets bribe people and use corrupt behaviour in order to get business activities approved
Selling tactics- e.g staff persuade customers into signing up for contracts

Question 13

What is CSR?

Answer 13

Corporate social responsibility
Includes going above and beyond what is required by law to help society as a whole
E.g charity work ,community projects

Question 14

Adv of CSR

Answer 14

Improves brand loyalty and attracts new customers through positive publicity
People choose to work for businesses with good CSR records over rivals
Staff morale improves leading to increased motivation

Question 15

Dis adv of CSR

Answer 15

Costs more therefore shareholders may see it as a misuse of funds
Costs passed onto customer sos they will have to pay more