3.4 influences on business decisions

what are corperate influences

factors which will have an impact on business decisions

eg level of competition

whats corperate time scale

expectation within a business of when a return on investment will be achieved

whats a long term decision

affect the long-term mission and vision of the business

anything up to ten years

whats a short term decision

more likely to impact on objectives and tactics 

over the next few years at most

whats evidence based approach

systematic and facts-based approach when determining objectives, strategy and tactics

advantages of evidence based decision making

reducing the influence of personal biases and emotions

disadvantages evidence based

can be time-consuming, which may not be feasible in situations where quick decisions are required

whats subjective based decision making

guided principally by the personal opinions

advantages subject based

 flexibility and adaptability to unique situations

disadvantages subjective based

prone to biases which can lead to flawed conclusions.

what are the types of company cultures

power

role

task

person

whats power culture

Centralised authority, decisions made by main leaders

whats role culture

Clearly defined roles and responsibilities, hierarchical

whats task culture

Emphasis on collaboration, flexible roles to achieve goal

whats person culture

Focus on individual needs, values and goals within the business

whats strong company culture

attitudes values and beliefs are easily-recognised and embedded into the way that a business operates

whats weak company culture

'them and us' attitude may exist between workers and management

how is corperate culture formed

mix leaders attitude, human reasource policys and ownership style

what are diffficulties in changing established culture

identifying factors that need to change

the existance of subcultures

overcoming resistance to change

what are stakeholders

individuals or groups that affect or are affected by the actions of a business 

what are internal stakeholders

• individuals or groups inside the business

  • Employees

  • Managers and Directors

  • Business owners

what are external stakeholders

individuals or groups outside of a business

• Customers

• Shareholders

• Suppliers

• The local community

what are stakeholder objectives

business considers all of its stakeholders in its business decisions/objectives

what are shareholder objectives

that the business should focus purely on shareholder return

what are business ethics

moral principles that guide the behavior of individuals and organizations in the business world

ethics in pay and rewards

Salaries, wages and other forms of financial reward play an important role in

• rewarding and motivating existing staff

• attracting new employees

• maximising productivity level

whats corperate social responisbility

conducting business in an ethical way

balancing the interests of shareholders and wider community

benefits of corperate social responsibility

• enhance the business image and reputation

• CSR may improve employee motivation and productivity

• CSR can help recruit strong candidates