3.4 Influences on business decisions

Question 1

Corporate timescale - short termism

Answer 1

When businesses make decisions to increase financial performance over short time periods, often at the expense of long term performance.

Question 2

Corporate timescale - long termism

Answer 2

When a business concentrates on reaching long term goals rather than prioritising short term financial gains

Question 3

Power cultures

Answer 3

Have a centralised structure where decision making authority is limited to a small number of people perhaps even just the owner.

Question 4

Role cultures

Answer 4

Common in bureaucratic firms where authority is defined by job title only.

Decisions are made by senior managers so employees don’t get involved in decision making.

Question 5

Person cultures

Answer 5

Common in loose organisations of individual workers such as accountants and solicitors etc

Firm objectives are defined by personal ambitions of the people involved. They have to have common goals.