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
