Corporate Influences

Corporate Influences

1. Most businesses have a set strategy

   • Which has long term objectives
     • And short term goals
   • Sometimes businesses make short term decisions that don't fit the long-term goal
     • For example to boost profits

2. Subjective VS Objective

   • Business decisions may be based on evidence
     • Or the subjective views of key decision makers
       • Subjective decisions are likely to carry more risk

3. Corporate Culture

   • The culture of an organisation can influence decision making
     • An open and creative culture is likely to make decisions that promote change
       • Whereas a more rigid culture is likely to be cautious and carry less risk
         • This may lead to less innovation
           • And a loss of a competitive edge

4. Shareholder Perspective

   • Some businesses adopt a shareholder approach
     • When a business considers the views of shareholders over any other stakeholder
       • Potentially influencing the decisions of the business
   • Some businesses adopt a stakeholder approach
     • Where the views of customers, employees ect are also considered in the decision making process

5. Business Ethics

   • Businesses with a strong ethical stance are likely to make different decisions...
     • Than those who have no regard for ethics
       • For example a business focused on looking after the environment
         • Is unlikely to choose a factory that pumps out large amounts of dangerous fumes
       • However even these will be influenced by the threat of bad publicity