3.4

Question 1

what is short-termism

Answer 1

quick financial reward

Question 2

what causes short-termism

Answer 2

pressure to provide dividends to shareholders
changes in the structure of the business

Question 3

what are the advantages and disadvantages of short-termism

Answer 3

+/ pursue growth in sales
increase profit
driving unit cost down
-/ doesn’t focus on building a sustainable competitive advantage
reluctancy to invest
may not be the best decision in the long term

Question 4

what is long-termism

Answer 4

corporate timescales refer to strategy and expectation of when a return on investment will be achieved

Question 5

what are the advantages of long-termism

Answer 5

incorporates social responsibility
considers ethical behavior
R&D has long term goals
lots of staff development, training and recruitment

Question 6

what is evidence based decision making

Answer 6

decisions relating to the business based on evidence & data, scientific approach

Question 7

what is subjective decision making

Answer 7

decisions relating to a business based on personal perspectives, feelings & opinions

Question 8

what are the features of a strong culture

Answer 8

good communication with employees
focus on core values
recruitment & training finds best fit for the business
usually based around history & tradition in the business

Question 9

what are the features of weak culture

Answer 9

often leads to business failure
will exhibit demotivated workforce
inconsistent customer service
poor management
very bureaucratic & lack of flexibility to respond to dynamic markets

Question 10

what are the 4 classifications of culture

Answer 10

power
role
task
person

Question 11

what are the features of power culture

Answer 11

central figure that makes all decisions
few rules & procedures
competitive attitude amongst employees to gain power

Question 12

what are the features of role culture

Answer 12

decisions made through well established rules & procedures
power to make decisions comes from job title
very bureaucratic culture & may involve lots of paperwork

Question 13

what is task culture

Answer 13

focus on a project that needs to be completed
power comes from those who can accomplish the task & have the expertise
involves teamwork

Question 14

what is person culture

Answer 14

grouping simarly skilled people to share expertise & knowledge
work on a client by client basis rather than project by project

Question 15

how is cultire formed in a business

Answer 15

decisions based on ethos or influences
nature of business & what it sells
degree to which products changed overtime
business environment when it started
recruitment process
working hours
attitude to customer service

Question 16

what are internal stakeholders (give examples)

Answer 16

groups of individuals within an organization who have an interest in the business
owners
employees
managers

Question 17

what are external stakeholders (give examples)

Answer 17

groups or individuals outside of an organization who have an interest in the business
suppliers
customers
society
shareholders

Question 18

how should stakeholders be delt with if there is high expertise and a high willingness to engage

Answer 18

engage with stakeholders

Question 19

how should stakeholders be delt with if there is high expertise and a low willingness to engage

Answer 19

communicate with these stakeholders at board level

Question 20

how should stakeholders be delt with if there is low expertise and a high willingness to engage

Answer 20

communicate with these stakeholders at store level

Question 21

how should stakeholders be delt with if there is low expertise and a low willingness to engage

Answer 21

passive
no action required