3.4.1 corporate influence

Question 1

what are Corporate influences

Answer 1

Factors that affect what managers should take into account when making strategic decisions

Question 2

corporate influences include

Answer 2

Objectives
Ethics
Culture
Financial performance
SWOT analysis
Resources available
Relative power of stakeholders

Question 3

what are the two types of corporate timescales

Answer 3

short termism

Long-termism

Question 4

describe short termism

Answer 4

Pressure on a business to perform in the short term e.g. maximise profits and shareholder returns
Pressure in particular from financial markets
May be at the cost of long term growth

Question 5

describe long termism

Answer 5

Decision making is focused on achieving the long term vision and objectives of the business
Characteristics of the business are likely to include:
Heavy investment in R&D for product and process innovation
Soft HR strategy in order to recruit and retain top talent
Build long term relationships with suppliers and other external stakeholders

Question 6

what is Evidence-based decision making

Answer 6

Scientific decisions that are backed by research
Outcomes can be simulated or tested
Reduces but does not eliminate risk
Decisions are objective

Question 7

what is Subjective decision making

Answer 7

Based on intuition
Quicker decisions can be made
An experienced manager may understand the market
Dominant leaders may push decisions forward
May be necessary in a fast moving environment or to avoid missing opportunities