3.4 Flashcards
corporate influences definition
factors that will have an impact on business decisions
corporate timescale definition
the expectation within a business of when a return on investment will be achieved
short termism definition
drawback
business only interested in the quick financial reward rather than long term results
e.g. focusing on quarterly figures
means it fails to innovate
long termism definition
whole business approach which considers the ethical behaviour of the business within decision making , long term goals
evidence based decision making
Decisions relating to the business are based on evidence and data which is valid and trusted information
subjective decision making
Decisions relating to a business which are based on personal perspectives, feelings and opinions
what is a company culture
the norms and values of a business
benefits of a strong culture
- sense of identity for employees
- commitment from employees
-motivation
-communication
-reputation
drawbacks of weak culture
-often leads to business failure
-demotivated workforce
-poor customer service
-poorly managed
Handys model of culture
1.Power
- few people or one person drive the organisation and culture of the business
2. Role
- very clear structure, people belong to certain roles, cultures may differ from team to team
3. Task culture
- employees associate with a task or project, new cultures formed regularly
4. Person
- employees have independence, not affiliated with a specific group
how corporate culture is formed
- physical environment
- rituals
- key personalities
- stories/ reputation
problems changing organisational culture
- long process, may require training
- large organisations may have multiple cultures
-culture is deep set and difficult to change
what is a stakeholder
someone/ a group of people impacted by business decisions
internal stakeholders
- employees
2.managers
3.shareholders
external stakeholders
1.customers
2.local community
3. government
4. suppliers
