3.4.1- corporate influences

Question 1

What are corporate influences?

Answer 1

Factors which will have an impact on business decisions

Question 2

What does short- termism mean?

Answer 2

Business is only interested in a quick financial reward, based on choosing a course of action best for short term

Question 3

What does long-termism mean?

Answer 3

Considers ethical behaviour, they also invest in long term technology

Question 4

What are evidence based decision making?

Answer 4

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

Question 5

Pros of evidence based decision making?

Answer 5

-more disciplined and less liable to error
-can provide useful guidance when looking at a range of options
-can help influence others to support that decision

Question 6

Cons of evidence based decision making?

Answer 6

• does not take any ethical or social issues into account
• time consuming and costly
• can be biased

Question 7

What is subjective decision making?

Answer 7

Decisions relating to a business which are based on personal perspectives and opinions

Question 8

Pros to subjective decision making:

Answer 8

• takes into account social and ethical impacts
  -very flexible

Question 9

Cons of subjective decision making:

Answer 9

• management experience may not be up to date
• emotions and feelings can cloud decisions
  -not good for high risk decisions