Business 3.4 Influences on Business Decisions

?
Business Culture
Refers to the general culture within an organisation and includes leadership styles, methods of motivation, the working environment and the recruitment process.
1 of 18
Why might business culture need changing?
Improve business performance, Respond to a significant external change (political, economical or in the market).
2 of 18
Barriers to Culture Change
Loyalty, Insecurity, Prefers how it was, Different ambitions, Fear of the unknown: could mean loss of power, skill, income and the splitting up of work teams.
3 of 18
Evidenced Based Decision Making
Involves gathering information and using investment appraisals to reach an appropriate conclusion.
4 of 18
Subjective Decision Making
Based on the views of key individuals in the business, these decisions generally carry more risks.
5 of 18
Model of Evidenced Based Decision Making
Setting objectives, Gathering data, Analysing data, Making decision, Implementing decision, Monitoring and evaluating the decision.
6 of 18
Short-Termism
The time period where decisions only have an impact on the operations of the business (usually less than five years).
7 of 18
Short-Termism Courses of Action
External Growth, Asset ********* (buying businesses and selling profitable parts of them), Maximise profits, Less investment on R and D and training.
8 of 18
Drawbacks of Short-Termism
Long-term profitability might be threatened, Competitive edge lost, Time consuming, Over-reliance on short term contracts may not be appropriate.
9 of 18
Strong Culture
Where the values, beliefs and ways of working are deeply embedded within the business.
10 of 18
Weak Culture
Can arise when the core values are not clearly defined or embedded within a business.
11 of 18
Power Culture
Where there is a central source of power responsible for decision making.
12 of 18
Role Culture
Where decisions are made through well-established rules and procedures.
13 of 18
Task Culture
Power is given to those who can accomplish tasks requiring certain skills.
14 of 18
Person Culture
A number of individuals in the business who have similar skill sets but do not necessarily work together, e.g. architects.
15 of 18
How complex and dynamic are the four cultures?
Power= Highly dynamic, Low complexity. Task= Highly dynamic, Highly complex. Person= Not very dynamic, Highly complex. Role= Not very dynamic or complex.
16 of 18
Internal Stakeholders
Employees, Managers, Owners and Shareholders.
17 of 18
External Stakeholders
Competitors, General Public, Government, Customers, Suppliers and Pressure Groups.
18 of 18

Other cards in this set

Card 2

Front

Improve business performance, Respond to a significant external change (political, economical or in the market).

Back

Why might business culture need changing?

Card 3

Front

Loyalty, Insecurity, Prefers how it was, Different ambitions, Fear of the unknown: could mean loss of power, skill, income and the splitting up of work teams.

Back

Preview of the back of card 3

Card 4

Front

Involves gathering information and using investment appraisals to reach an appropriate conclusion.

Back

Preview of the back of card 4

Card 5

Front

Based on the views of key individuals in the business, these decisions generally carry more risks.

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all Business Decisions resources »