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3.4 influences on business decision - Coggle Diagram
3.4 influences on business decision
corproate influcnes something that influences decision making objectives
long term vs short term. plc and profit vs growth and sustainable innovation
evidence vs subjective based decision making. basing info around data and trends, market research based on hunch or feeling, gut
corporate culture- the actuons and behaviours that underpin a business
power culture- power held by just a few people, quite authoritarian
role culture- based on rules where everybody knows their roles and responsibilities
task culture- teams are formed to complete tasks, power can shift based on expertise
person culture- person is superior to organisation. often groups of professionals. maybe dentistry and law.
how to form a culture: influenced by leadserhip and consistency of values. must be enforced
difficulties changing cultures, there may be resistance from staff
stakesholders vs shareholders
external (stakeholders)
minority shareholders
lenders
customers
competitors
suppliers
government
society/local communities
internal (stakesholders)
majority shareholders. mostly decision makers
employees
managers/directors
conflict between stakeholders influences business decision. money is a big driver
ethics
most ethical decisions cost money, so theres a trade off between profit. can be usp but usually means less profit
treat employees well
environmental care
transparency
fair com[etition
suppliers
fair recruitment
treating customers with support
sometimes required by legislation
corporate social responsiblity- goes beyond legal requirement. being cynical drives profit but meant to be an image polisher