corporate influences

Question 1

what is a business aim?

Answer 1

the things a business wants to do in the long term and what it’s aiming to achieve

Question 2

what is a mission statement?

Answer 2

a statement written by the business describing its purpose, goals and values

Question 3

what is a corporate timescale?

Answer 3

a strategy and expectation of when a return will be achieved

Question 4

what is short termism?

Answer 4

when quick, reactive decisions are made (e.g weekly sales)

Question 5

what are 2 advantages of short termism?

Answer 5

• reactive to external issues
• progress can be measured/managed

Question 6

what is a disadvantage of short termism?

Answer 6

• could steer focus away from potential investment in research and development, employee training etc
• high dividend payments rather than reinvesting profits

Question 7

what is long termism?

Answer 7

a strategic decision being made in the long term (e.g considering corporate social responsibility in decision making)

Question 8

what are 2 advantages of long termism?

Answer 8

• all strategic elements are considered e.g ethics
• considers organic growth

Question 9

what are 2 disadvantages of long termism?

Answer 9

• could be considered ‘for show’ like ‘greenwashing’
• could lack the correct intention

Question 10

give 2 examples of short termism

Answer 10

• weekly sales target
• PLCs under pressure to produce dividends for shareholders

Question 11

what is evidence based data?

Answer 11

decisions relating to the business are based on evidence and data from a trusted source

Question 12

give an advantage of evidence based data

Answer 12

• based on facts, meaning it’s more reliable

Question 13

give a disadvantage of evidence based data

Answer 13

may lack context to the business

Question 14

what is subjective based decision making?

Answer 14

decision making made based off personal perspectives, feelings and opinions

Question 15

business ethics influence on decision making

Answer 15

ethical businesses will look at helping local communities and environment. but even those with little care for it will still be influenced by these issues or risk of bad publicity

Question 16

shareholder V stakeholder approach

Answer 16

shareholder approach is when views of shareholders influence decision making more while others are slightly disregarded. whereas stakeholder approach looks at wider range of stakeholders

Question 17

how does corporate culture affect decision making?

Answer 17

if a business is open to innovation and flexibility, it is more likely to make decisions involving change. if the culture is more resistant, decisions are likely to be more cautious and have less risk

Question 18

when is subjective decision making approproate?

Answer 18

when there is lack of information to make a decision

if the leader has experience and the business has a culture of trust

might be the industry norm

decisions may need to be made quickly but it has more risk

Question 19

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