The practice of buying businesses and breaking them up. The profitable parts are sold for cash and the rest are closed down.
1 of 18
What is evidence-based decision making?
An approach to decision making that involves gathering information and using a systematic and rational approach to reach a conclusion.
2 of 18
What is subjective decision making?
An approach to decision making where the personal opinions of the key decision maker strongly influence the course of action chosen.
3 of 18
What is long-termism?
The time period where decisions have an impact on the vision, mission and objetives of a business- typically longer than 5 years.
4 of 18
What is short-termism?
The time period where decisions only have an impact on the operational activities of a business-typically less than 5 years.
5 of 18
What are the 6 stages of an evidence-based approach to decision making?
1. Setting/identifying objectives 2. Gathering ideas and data 3. Analysing ideas and data 4. Making a decision 5. Implementing the decision 6. Monitoring and evaluation
6 of 18
What is a strong culture?
A culture where the values, beliefs and ways of working are deeply embedded within the business and its employees.
7 of 18
Give 3 examples of internal stakeholders?
Business owners/ Employees/ Managers and directors
8 of 18
Give 7 examples of external stakeholders?
Shareholders/ Customers/ Creditors/ Suppliers/ The local community/ The government/ The environment
9 of 18
What is the difference between an internal and external stakeholder?
An internal stakeholder are groups inside a business with an interest in its activities whereas an external stakeholder are groups outside a business with an interest in its activities.
10 of 18
What is meant by the term ethics?
The consideration of the moral rights and wrongs of a decision .
11 of 18
What is corporate social responsibility (CSR)?
A business assessing and taking responsibility for its effects on the environment and its impact on social welfare. It involves the idea that businesses bear a responsibility that stretches beyond their shareholders.
12 of 18
Describe a power culture?
A power culture is one where there is a central source of power responsible for decision making. There are few rules and procedures within the business and these are overridden by the individuals who hold power . There is a competitive atmosphere.
13 of 18
Describe a role culture?
In a role culture, decisions are made through well-established rules and procedures. An organisation with a role culture will have a tall or flat hierarchy with a long chain of command. Example-The civil service
14 of 18
Describe a task culture?
Teamworking is common and power lies with those with expertise rather than a particular role. Adaptability and dynamism are important in this culture.
15 of 18
Describe a person culture?
A person culture is one wyhere there are a number of individuals in the business who have expertise, but who do not necessarily work together particularly closely. The organisation supports individuals. Examples- Accountants, lawyers, doctors.
16 of 18
Why may a culture need changing?
To improve business performance (declined profits,inadequate returns on investment), To respond to significant changes (market changes e.g. competitors, political change, change of leadership).
17 of 18
Give some possible barriers to cultural change?
1. Loyalty to existing relationships 2. Insecurity 3. Failure to accept the need for change 4. Fear of loss of power, skills and income
18 of 18
Other cards in this set
Card 2
Front
What is evidence-based decision making?
Back
An approach to decision making that involves gathering information and using a systematic and rational approach to reach a conclusion.
Comments
No comments have yet been made