3.4.1 - Corporate Influences Flashcards
1
Q
What is long-terminism?
A
Time period where decisions have an impact on vision and objective of business
- Focus on sustained growth through relationships etc
- Research and Development
2
Q
What is short-terminism?
A
Refers to businesses
prioritising short-term rather than
long-term performance
3
Q
What are the two ways to make decisions?
A
- Evidence Based
- Subjective
4
Q
Benefits of evidence based decision making
A
- Data helps to reduce risk
- Helps to compare with alternatives
5
Q
Benefits of subjective based decision making
A
- Quicker decisions
- Avoid missing opportunities
6
Q
Limitations of subjective based decision making
A
- Always an element of risk with gut instincts
- Risky
7
Q
Limitations of evidence based decision making
A
- Data can be time consuming
- Out of date/unreliable
8
Q
Effects and Actions of short-terminism?
A
- Loss of profitability
- Loss of competitive age
- Long term opportunities sacrificed
- Short term contracts
- Minimise R&D
9
Q
Effects and Actions of long-terminism?
A
- R&D
- Valuing of staff
- Lasting relations with suppliers
