3.4.1 Corporate Influences

Question 1

Corporate Influences

Answer 1

Internal factors affecting business decisions.

Question 2

Corporate Timescales

Answer 2

• Short-term
• Long-term

Question 3

Short term perspectives

Answer 3

• Maximise short-term profits.
• Invest less in R&D and training.
• Return profits to shareholders.
• Pursue external growth strategies.

Question 4

Long-term perspectives

Answer 4

• Invest in R&D and training.
• Focus on quality of profit.
• Take an ethical stance on decision making.
• Pursue the interest of stakeholders.

Question 5

Evidence-based approach

Answer 5

Decisions based on evidence/data that has been gathered and analysed.

Question 6

Subjective approach

Answer 6

Decisions based on experience and gut feeling without having supportive data.

Question 7

Strengths and drawbacks of the evidence based approach

Answer 7

+ Easier to justify a decision.
+ Data can help reduce the risk in decision making.
+ Data can help compare options.
- Expensive and time-consuming to collect data.
- Sometimes data is unavailable, out of date or unreliable.

Question 8

Strengths and drawbacks of subjective approach

Answer 8

+ Quick decisions.
+ Leader may be very experienced.
- Risky.
- Difficult to justify decision.