3.4

Question 1

Evidence based decision making

Answer 1

Approach to decision making that involves gathering information and using a systematic and rational approach to reach a conclusion

Question 2

Subjective decision making

Answer 2

More holistic approach to business strategy , incorporating aspects such as CSR and ethical behaviour

Question 3

Long termism

Answer 3

Time period where decisions have an impact on the vision , mission and objectives of a business typically longer than five years

Question 4

Short termism

Answer 4

Businesses and managers are focussed on quick financial rewards such as quarterly profit or sales figures , often at the expense of investment in important areas

Question 5

Corporate culture

Answer 5

Unwritten code of conduct within a business organisation that reflects its values and embodies the shared beliefs and assumptions that underpin the decision making processes

Question 6

Culture

Answer 6

Shared attitudes , values , customs , expectations

Question 7

Person culture

Answer 7

Where there are a number of individuals in the business who have expertise but they don’t always work together

Question 8

Power culture

Answer 8

Central source of power responsible for decision making

Question 9

Role culture

Answer 9

Decisions are made through well established rules and procedures

Question 10

Task culture

Answer 10

Business allows teams to focus on a particular task within the overall aim of the business

Question 11

Strong culture

Answer 11

Culture where values ,beliefs and ways of working are deeply embedded within the business and its employees

Question 12

Weak culture

Answer 12

Needs of the business are put before the needs of the customer , communication is weak , staff turnover high

Question 13

Stakeholders

Answer 13

People or groups who have an key interest in the activities of a business

Question 14

External stakeholders

Answer 14

Groups outside a business with interest in activities

Question 15

Internal stakeholders

Answer 15

Includes employees , managers , board of directors and the owner of the business

Question 16

Stakeholder approach

Answer 16

Business considers all of its stakeholders in its business decisions/objectives

Question 17

Shareholders

Answer 17

Owners of a company who have taken a risk by investing their capital into the business

Question 18

Shareholder approach

Answer 18

Business focuses purely on shareholder returns in its business decisions/objectives

Question 19

Capital employed

Answer 19

Long term finance of the business including share capital , retained profit and non current liabilities

Question 20

Corporate social responsibility

Answer 20

When a business pays attention to the impact the company’s actions have on social and environmental issues and the impact on a range of stakeholders, not just shareholders

Question 21

Ethics

Answer 21

Moral principles that determine how business decisions are made and may include providing good working conditions, fair pay and assessment of environmental impacts. They are considered to be the right thing to do

Question 22

Socially responsible business

Answer 22

One that considers business ethics as a key influence on its strategic decisions