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.
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.
