key terms 3.4-Influences on business decisions Flashcards
what is asset stripping?
the practice of buying businesses and breaking them up
what is evidence-based decision making?
an approach to decision making that involves gathering info and using a systematic and rational approach to reach a conclusion
what is long-term?
the time period where decision has an impact on the vision, mission, and objectives of a business-longer than 5 years
what is short-term?
the time period where decisions only have an impact on the operational activities of a business- less than 5 years
what are strategic decisions?
decisions concerning policy that can have a long term impact on a business
what is subjective decision making?
approach to decision making where the personal opinions of the key decision-maker strongly influence the course of action chosen
what are cultural dimensions?
a set of characteristics that form the 9international context of business culture
what is corporate/business culture?
the values, attitudes, beliefs, meanings, and norms that are shared by people and groups within an organisation
what is a strong culture?
where the values, beliefs, and ways f working are deeply embedded within the business and its employees
who are external stakeholders?
groups outside a business with an interest in its activites
who are internal stakeholders?
groups inside a business with an interest in its activities
what is shareholder value?
a measure of company performance that combines the size of dividends with the share price
what is corporate social responsibility?
a business assessing and taking responsibility for its effects on the environment and its impact on social welfare
what are ethical codes of practice?
statements about how employees in a business should behave in particular circumstances where ethical issues arise
what are ethics?
consideration of the moral ‘rights’ and ‘wrongs’ and following a business code of conduct
what is the living wage?
hourly rate of pay based on the basic cost of living set independently of government and updated annually
what is the national minimum wage?
minimum pay per hour all workers are entitled to by law
what is remuneration?
reward of work in the form of pay, salary or wages including allowances and benefits e.g. company car,pension
what are sanctions/trade embargoes?
restrictions imposed on trade or investment with the aim of influencing a policy change in another country
