Theme 3 Topic 10
Corporate Influences and Culture
Corporate Influences
Factors that influence the objectives and strategies of a business.
Corporate Culture
The culture of an organisation can influence decision making
Google Sony
Open culture – encourage risk taking Formal
Informal Built around consensus
Pleasing employees – motivation Bureaucratic decision making
Creative, flexible, innovative Cautious – don’t like risk taking
Encourages collaboration
Kraft/Cadbury Culture Cash
Kraft: Cadbury:
Large conglomerate Focused on good quality
Wants growth/profits Informal
Corporate Employee focused
‘Cut-throat’ Paternalistic
Stakeholder Perspective
Some corporations take a ‘shareholder approach’ when making business decisions. This means that the views
of shareholders influence decision making, whilst others are marginalised.
E.g. Tesco
Others take a ‘stakeholder approach’ – the views and needs of a wider range of stakeholders, such as
customers, employees, suppliers and the environment are considered when making strategic decisions.
E.g. John Lewis
Business Ethics
Corporations with a strong ethical stance are likely to make different decisions from those that have little
regard for ethics. For example, businesses with a strong sense of CSR are not likely to choose a course of action
that may threaten the environment, damage relations with local communities or upset the workforce.
Corporate Timescale
The outcome of decisions can have both a short and a long term impact on a company.
Long term decisions – those that affect the vision, mission and objectives of the company. They could have an
impact on the business in 5 or 10 years’ time.
Short term decisions – more tactical/operational in nature and are designed to achieve goals e.g. in 12
months’ time. Big businesses want to keep their shareholders happy.
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