3.4.1 Corporate Timescale

Question 1

What do Corpotate Influences include?

Answer 1

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

Question 2

What are Corporate influences?

Answer 2

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

Question 3

What is Short-termism?

Answer 3

Pressure on a business to perform in the short term e.g. maximise profits and shareholder returns

Question 4

What is a draw back for Short-termisms?

Answer 4

May be at the cost of long term growth

Question 5

What is a Long-termism?

Answer 5

Decision making is focused on achieving the long term vision and objectives of the business

Question 6

What are the Characteristics of a Long-Termism Business?

Answer 6

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 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

Question 8

What is Evidence-based decision making?

Answer 8

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

Question 9

What tyoe if person will use subjective decsison making?

Answer 9

Entrepreneurs