3.4 Corperate influences

Question 1

Long term

Answer 1

Affect the long-term mission and vision of the business.

Question 2

Long term time length

Answer 2

Up to 10 years

Question 3

Long term Approach

Answer 3

Ongoing investment in research and development
Increasing brand loyalty
Investing in recruitment, training and retention of staff

Question 4

Short term

Answer 4

Impact on immediate goals and objectives.

Question 5

Short term time length

Answer 5

Over few years

Question 6

Short term approach

Answer 6

Maximise short term profits
Increasing share price and dividends
Overworking staff to narrowly focus on productivity.

Question 7

Short term issues

Answer 7

Loss of profitability and competitive edge
Produce regular financial reports so dont have time to take into consideration long term decisions
Short term contracts higher costs as can’t bulk buy.

Question 8

Evidence based decision making

Answer 8

Using scientific forecasts and techniques.

Question 9

Example of evidence based decision making

Answer 9

Decision trees

Question 10

Advantage of evidence based decision making

Answer 10

More likely to be consistent
Easily justified

Question 11

Disadvantage of evidence based decision making

Answer 11

Past trends never guaranteed to remain into the future

Question 12

Subjective decision making

Answer 12

Involves using intuition and hunches

Question 13

Advantage of subjective decision making

Answer 13

Good for quick decision making
Adapt to new changes

Question 14

Disadvantage of subjective decision making

Answer 14

No evidence to back up argument