business edexcel a level > 3.4 > Flashcards

3.4 Flashcards

(51 cards)

Study These Flashcards
1
Q

what are corporate influenced

A

-internal factors affecting business decisions
-including short v long term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is short termism

A

-managers actions that focus on immediate issues rather than long term ones
-focus on quick financial reward

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what are features of short termism

A

-minimal r&d
-bias towards high dividends, at expense if investment
-executive pay schemes rewarding short term goals
-employment level cuts
-focus on acquisition rather than organic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what structure is most likely to adopt short termism

A

plc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

why might short termism be adopted

A

-to raise share prices to reduce threat of takeover
-bosses may lack long term understanding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the effects of short termism

A

-missing long term opportunities
-reluctance to invest in r&d, training, capacity etc
-achieving profit today may be at expense of tomorrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is long termism

A

-focusing on a long term time scale, with focus on ethical behaviour and corporate social responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is the german mittelstand

A

-group of large privately owned german businesses with world leading competitive positions as a result of long term strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are features of the german mittelstand

A

-family ownership
-generational continuity
-long term investment + focus on R&D
-independence
-workforce investment
-flexibility to changing external environment
-lean organisational hierarchies
-innovation + customer service focus
-focus on CSR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is power culture

A

decision making by one/few powerful individuals at top of hierarchy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are the features of power culture

A

-few rules in decision making
-quick decision making
-flexibility
-encourages risk taking
-autocratic leadership
-potential demotivation of employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is role culture

A

decision making by those with specific job roles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are features of role culture

A

-clear hierarchies
-large/multinational businesses
-clear responsibilities
-potential lack of creativity/innovation
-slow decision making
-paternalistic leadership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is task culture

A

decision making by teams of employees with specific skills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are features of task culture

A

-creativity + innovation
-flexibility
-democratic leadership
-potential conflict in teams

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is person culture

A

decisions made by individuals with experience and skills who are loosely brought together

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are features of person culture

A

-individual autonomy
-job satisfaction
-lack of cooperation
-may be inefficient
-laissez faire leadership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is scientific/evidence based decision making

A

approach to decision making using data and logic to minimise risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

why is scientific/evidence based decision more popular

A

-widespread data availability
-analysists more experienced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is subjective decision making

A

decision making based off intuition/ experience/ opinion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

who is more likely able to use subjective decision making

Study These Flashcards
A

-higher ups due to more experience + power

22
Q

what is corporate culture

Study These Flashcards
A

set of assumptions shared by those working in a particular business that influence how decisions are taken

23
Q

what does corporate culture consist of

Study These Flashcards
A

-shared values
-beliefs + normals
-day to day behaviour

24
Q

how can a culture be identified

Study These Flashcards
A

-how decisions are made
-methods/ style of communication
-how customers are treated

25
what are the features of strong corporate culture
-shared values + beliefs -clear communication -loyal staff + reduced turnover -respect between managers + employees -higher motivation + productivity
26
what are features of weak corporate culture
-lack of clear values -ineffective communication -low motivation + productivity -us and them mentality -capable staff move on -poor performance -staff may need o be forced to comply
27
what might corporate culture originate from
-beliefs/values/ethics -aims/objectives -mission statement -sub cultures -influence form key personality
28
what does corporate culture affect
-decision making -organisation -motivation -management control -recruitment + selection -response to external environment -how customers are treated -attitude to stakeholders -quality -
29
why may culture change, regarding improving performance
-declining profit/sales -inadequate returns on investment -low quality/ customer service
30
what two factors may cause culture to change
-responding to change -improving performance
31
why may culture change, regarding response to change
-market changes -political/legal -change in societal views -change of ownership -change of management -economic conditions
32
what may suggest the culture needs changing
-internal fighting -high turnover -high absenteeism -declining customer service -innovation not values -double standards in leadership -closed communication
33
why might it be hard to change an established culture
-employee resistance -reduced productivity -older employees may resist changes from newer
34
what is a stakeholder
-people/ organisations with a special interest in a business -can be internal/external
35
list the internal stakeholders
-shareholders -managers/employees
36
what are conflicts between stakeholders
often different stakeholders have different objectives regarding a business, so often a decision will not satisfy all stakeholders
36
list the external stakeholders
-customers -suppliers -bank/finance provider -trade union -government -local community -media -competitors -pressure groups
37
how does a business make decisions if it is stakeholder focused
it will consider all stakeholders in decisions
38
how does a business make decisions if it is shareholder focused
focused on shareholder returns; increasing share price/dividends
39
what is business ethics
-the principles/ standards that determine socially acceptable conduct in a business -how society deems business behaviour as right/wrong
40
what are the trade off between profit and ethics
-if an ethical action requires a loss of profit it can be difficult for a business to make a decision -a healthy business should keep a balance between ethics and profit
41
why might behaving ethically conflict with profit
-increases costs + reduces profitability -time consuming to implement -unsustainable resources often cheaper
42
why should behaving ethically be considered
-some companies have shown it can be profitable -consumer opinions + buying choices affect sales -can avoid outside regulation which could be costly long term -increased motivation + enhanced leadership
43
what are the pros of ethical behaviour
-high revenue + demand -improved brand + awareness -employee motivation + recruitment -ethical investors open new finance source
44
what are the cons of ethical behaviour
-higher costs -higher overheads -danger of building false expectations
45
why may pay and rewards be controversial
-top managers often receive large pay and bonuses, often despite poor performance -those lower down may not feel its fair since they have as much part in business success
46
what is CSR (corporate social responsibility)
where businesses address social and environmental considerations as part of their normal business activities
47
whats the difference between CSR and ethics
-ethics is how an action is deemed as right/wrong -CSR is broader and concerns the impact of a business on society as a whole + all stakeholders
48
what does CSR involve
-ethical behaviour -interest in wider community -responding positively to new societal expectations -willing to act ahead of regulation
49
what are the pros of CSR
-marketing advantage - USP -more qualified, motivated staff apply -attractive to stakeholders
50
what are the cons of CSR
-reduced profitability -reduced growth prospects -is it just used as a tool for public relations, is it true to the business
business edexcel a level
flashcards
Decks in class (20)
# Cards
Brainscape helps you reach your goals faster, through stronger study habits.
© 2026 Bold Learning Solutions. Terms and Conditions