This is a summary of section 3.4 of the Pearson Edexcel A-Level Business syllabus. The notes are organised according to the syllabus, split up under the headings: Corporate Influences; Corporate Culture; Shareholders vs Stakeholders; and Business Ethics. Each section has a table of key terms with t...
3.4.1 – Corporatu Influnnues
Corporate inflences The internal factors afeccnin blsiness decisions
Corporate cmescales Whether the key inflences on decision makinin are achievinin
short term inoals or achievinin the loniner-term vision
Evidence-based Arrivinin at an objeccve decision, in a raconal and loinical
decision makinin manner, havinin analysed and evallated relevant evidence
Slbjeccve decision Relyinin on inscnct, eeperience and ‘inlt feelinin’ witholt
makinin developinin a loinical arinlment for the decision made
Types of Blsiness Decision
1. Strateinic – Senior Manainement Decisions (e.in. eepandinin into a new market)
2. Tacccal – Middle Manainement Decisions (e.in. lalnchinin new prodlcts to local
markets)
3. Operaconal – Lower Manainer Decisions (e.in. which local slppliers to lse)
Corporate Inflences
Objeccves SWOT analysis
Corporate clltlre Financial performance
Ethics Relacve power of stakeholders
Resolrces available
Corporate Timescales
SHORT-TERMISM – the blsiness and manainers are foclsed on qlick fnancial reward e.in.
qlarterly proft or sales. This is ofen at the eepense of investment areas e.in. R&D, staf
development or investment in technoloiny.
LONG-TERMISM – a more holiscc approach to blsiness strateiny, incorporacnin aspects slch
as ethical behaviolr and CSR. Ofen associated with beinin a more slstainable blsiness
approach.
Approaches to Decision-Makinin
EVIDENCE-BASED
More disciplined Analysis of data can be biased
Data can provide lsefll inlidance Does not consider ethics
when lookinin at alternacve opcons Time-conslminin and costly
Opcons can be simllated or tested Lacks creacvity, potencally calsinin
Can help inflence others to a lack of innovacon
slpport the decision
SUBJECTIVE
Draws lpon skills and eeperience of Manainement eeperience may not
manainement be relevant in fast chanininin,
Takes into accolnt ethical and social dynamic markets
impacts Emocons may clold jldinement
Relacvely qlick, takinin advantaine of Hard to jlscfy hiinh-risk decisions
opportlnices as they arise
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CaseyJade. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.99. You're not tied to anything after your purchase.
