3.4.1 Coperate Influences

Question 1

What is corporate time scales?

Answer 1

expectations of when a return will be achieved

Question 2

what is short termism ?

Answer 2

When you priorities short time performance is a long-term performance

Question 3

What are the 7 business may do if they focus on short termism?

Answer 3

Maximise short-term profit - aim to increase shareholder value -persuasive advertising

minimise research and development -prevent negative cash flow

maximise returns to shareholders

Do rapid external gross rather than organic

invest less in human resources

Priorities short term supply contracts

Question 4

What are the 4 drawbacks of short termism?

Answer 4

Long time profitability
will be threatened as he has too much on the short term - failed to invest in research
And development

Companies may lose their competitive advantage over seas if long-term performance is ignored

Short termism - need to make more financial report may force companies to be more disciplined. - extra time could be used in productivity

overreliance short term contracts may be inappropriate

Question 5

What is long termism?

Answer 5

Long-term performance prioritied and decisions have an impact of the vision of the business

Question 6

What happens with the business can incorporate long termism?

Answer 6

Incorporate corporate social responsibility

ethics

invest in long term technology

Question 7

What is evidence based decision making?

What do we use?

What is the based on?

Answer 7

Gathering information about the business using a statistical and systematic approach
To reach a conclusion

We use data That is valid and can be trusted

Based on critical thinking

Question 8

what is subjective decision making?

Answer 8

When the Personal opinion influence the action chosen to reach a conclusions

Question 9

what are the two types of decision-making?

Answer 9

evidence based and subjective decision making

Question 10

What kind of 5 steps of evidence based decision making ?

Answer 10

ask - the problem into the question

Acquire evidence

Analysis or apprise the evidence

Apply Evidence to the problem

the assess the Outcome of the decision

Question 11

What are the four characteristics of a weak corporate culture?

Answer 11

1. Lack of clear values - uncertain about expectation

Poor communication - misunderstandings

little collaboration - little innovation

Lack of trust and accountability - I blame culture discourages ownership and fosters negativity

Resistance to change - can lead to missed opportunities to miss opportunities

Question 12

What are the six characteristics of a strong corporate culture?

Answer 12

Shared beliefs and values -everybody aligns with the corporate principles of the business - help guide actions and decisions

clear communication - effective and allows transparency

teamwork - good for innovation and problem-solving

trust and accountability - encourages ownership and responsibility

adaptability and resilience -

Question 13

Why does corporate culture matter?

Answer 13

create a working and innovative environment - good for collaboration

Question 14

What do weak business cultures create?

Answer 14

Friction and stagnation

Question 15

What are the two types of stakeholders?

What do businesses need to do?

Answer 15

anybody who are interested in a business

Take into account the needs and interests of stakeholders - to operate fully for the long term

Internal - within the business
employees
managers
directors
owners

External- outside of the business
customers,
shareholders
creditors
suppliers,
local community
government
pressure groups

Question 16

What are the stakeholder vs Shareholder objective conflicts?

Answer 16

stakeholders- Objectives may come to conflict with board of directors- financial over environmental therefore decreasing the share value of the business

Customers - want low prices - owners want as profit as high as possible charge high prices

Supplies want high price- for their suppliers - conflict owners lowest cost of production as possible

Government - want tax and to control- CMA - conflict with owners
tax erodes profit they want to open stores l to expand market share

Unions - want working conditions to be good and high pay 💰 - conflict- want high profit reduced labour costs charge lowest wage possible

Employees- want pay and job security - to maximise profits we only offer zero based contract 📑

Managers - want rigid budgets and promotion -boards of directors may oppose ideas once something - fresh ideas 💡 from outside

Competition - small local independence want market share- want to continue to expand stores 🏬

Question 17

What is stakeholder mapping?

Answer 17

A tactic of how businesses engages stakeholders

Question 18

What are the four traits on stakeholder mapping?

Answer 18

Monitor

keep informed

Keep satisfied

managed closely

Question 19

What stakeholders are in monitor stakeholder mapping?

What do they require?

Answer 19

Suppliers - minimal effort - get information from company website

Question 20

What stakeholders are in keep informed in
stakeholder mapping?

What do they require?

Answer 20

Keep informing decisions to potential supporters of the business in the future

local communities

Question 21

What stakeholders are in keep satisfied stakeholder mapping?

What do they require?

Answer 21

Any communication is to keep level of interest in the business

pressure groups
employees

Question 22

What stakeholders are in manage closely in stakeholder mapping?

What do they require?

Answer 22

Should be involved with decision-making and engaged with the regularly

Government and managers

Question 23

What are the positive and negative impact a business may have towards the local community?

Answer 23

Positive - if the Business employees locally more people will have displosable income
increase spending and allow local businesses to prosper

Neg - Maybe criticise from local community environmental issues or noise pollution

Question 24

What could be another external stakeholder?

Answer 24

Business activity could impact the environment resource depletion and habitats could
be destroyed.

Representative groups may be interested in their practices.

Question 25

What are the two different types of approaches of business can take?

What are they both likely to do?

Answer 25

Shareholder - meeting the needs of shareholders -
Profit maximisation - increase in dividends and improve the share price

stakeholder approach - interdependencies between stakeholder groups - likely to decrease profits may increased costs
.- meeting employees’ needs by paying higher wages will increase salary costs

Owners may be disadvantaged

Question 26

What happens if the business is experiencing financial difficulties?

Answer 26

Share holders may lose value in investments and employees may face drop cuts