One of the main functions of the senior management team in a corporation is to make strategic decisions. These are important, far-reaching decisions as a long-term impact business. For example, if a business decides to build a new factory in an overseas location, this is not a decision that can be easily reversed. As a result, the impact of decision on the finances of the business, employees and operations will be filed for a long time. The large corporation’s important business decisions I likely to be influenced by a number of key factors
- Corporate influences: most businesses have a strategy which is a long-term objective and short-term goals. Sometimes, in an attempt to boost profits, the emir makes short-term decisions which do not think the long-term strategy. As a result, they may decide, for example, and wage increases just 1% for 3 years. This might help to boost profits in the short term, we could adversely affect the long-term forms of the business at work and motivation decline.
- Corporate culture: the culture of an organisation and Influence decision-making. For example, if the culture id open creative, flexible and innovative businesses can make decisions that involve change. If a culture is more resistant to change, decisions are likely to be more cautious and involve less risk. This might result in less innovation and a loss of competitive Edge.
- Stakeholder perspective: some corporations take a shareholder approach when making business decisions. This means that the views of shareholders influence decision making all those of other stakeholders are marginalised. For example, large shareholders such as institutional investors like pension funds, they have an impact on the amount of risk taking by the company. In contrast, some corporations take a stakeholder approach. This means that the views and needs of a wider range of stakeholders, such as customers, employees, suppliers and the environment, are considered when making strategic decisions.
Business ethics: corporations with a strong ethical stance I like in a different position from record for ethics. For example, businesses with a strong sense of corporate social responsibility are not likely to choose a course of action and Environment, damage relations with local Communities set the workforce. In contrast, a corporation has not concerned issues may decide to invest cash reserves in, for example, I weapons manufacturer. However, even those who do not have a strong ethical stance not make ethical decisions I will still be influenced by these issues or potential bad publicity