Corporate Influences (Edexcel A-Level Business): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Corporate timescales
Corporate timescales
Time period over which business decisions impact
Long-term decision timeframe
Long-term decision timeframe
Five years or more, sometimes a decade
Short-term decision timeframe
Short-term decision timeframe
Around 12 months
Short-termism
Short-termism
Prioritising immediate results over long-term sustainability
Asset stripping
Asset stripping
Buying & breaking up businesses to sell profitable parts
Evidence-based decision making
Evidence-based decision making
Systematic rational approach using data analysis
Subjective decision making
Subjective decision making
Decisions based on personal opinions not data
Evidence-based decision making stages
Evidence-based decision making stages
Six stages
When subjective decisions appropriate
When subjective decisions appropriate
Limited info, time pressure, powerful leader, industry norms
Main cause of short-termism
Main cause of short-termism
Executive pay based on short-term share price performance