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3.4 - Coggle Diagram
3.4
corporate influences
short termism
business only interested in quick financial reward
historical roots
choosing a course of action which is best in the short term but may be critical in the long run
Lack of development
focus on short term returns on investment
e.g. not innovation such as Kodak
long- termism
considers ethical behaviour of the business in decision making
research and development have long term goals
Decision making
evidence based decision making
decisions based on evidence and data and trusted information
evidence from multiple sources to increase the probability of a favourable outcome
advantages
more disciplined and less liable error
data can provide useful guidance when looking at a range of options
options can be simulated and tested
disadvantages
analysis of the data used to base the decision on can be biased
does not take ethical or social issues into account
can be time consuming and costly to gather evidence
lacks creativity which may lead to failure to come up with different innovative approaches
subjective decision making
decisions relating to a business which are based on personal perspectives
example: film awards made entirely on subjective decisions
advanatages
skills of senior management may be better source of information than historical data
can take into account the social and ethical impact of the decision
very flexible means that the business owners can take advantage of any opportunities as they arise