3.4 Flashcards
what is short-termism
quick financial reward
what causes short-termism
pressure to provide dividends to shareholders
changes in the structure of the business
what are the advantages and disadvantages of short-termism
+/ 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
what is long-termism
corporate timescales refer to strategy and expectation of when a return on investment will be achieved
what are the advantages of long-termism
incorporates social responsibility
considers ethical behavior
R&D has long term goals
lots of staff development, training and recruitment
what is evidence based decision making
decisions relating to the business based on evidence & data, scientific approach
what is subjective decision making
decisions relating to a business based on personal perspectives, feelings & opinions
what are the features of a strong culture
good communication with employees
focus on core values
recruitment & training finds best fit for the business
usually based around history & tradition in the business
what are the features of weak culture
often leads to business failure
will exhibit demotivated workforce
inconsistent customer service
poor management
very bureaucratic & lack of flexibility to respond to dynamic markets
what are the 4 classifications of culture
power
role
task
person
what are the features of power culture
central figure that makes all decisions
few rules & procedures
competitive attitude amongst employees to gain power
what are the features of role culture
decisions made through well established rules & procedures
power to make decisions comes from job title
very bureaucratic culture & may involve lots of paperwork
what is task culture
focus on a project that needs to be completed
power comes from those who can accomplish the task & have the expertise
involves teamwork
what is person culture
grouping simarly skilled people to share expertise & knowledge
work on a client by client basis rather than project by project
how is cultire formed in a business
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
what are internal stakeholders (give examples)
groups of individuals within an organization who have an interest in the business
owners
employees
managers
what are external stakeholders (give examples)
groups or individuals outside of an organization who have an interest in the business
suppliers
customers
society
shareholders
how should stakeholders be delt with if there is high expertise and a high willingness to engage
engage with stakeholders
how should stakeholders be delt with if there is high expertise and a low willingness to engage
communicate with these stakeholders at board level
how should stakeholders be delt with if there is low expertise and a high willingness to engage
communicate with these stakeholders at store level
how should stakeholders be delt with if there is low expertise and a low willingness to engage
passive
no action required
