Business Chapter 2 Stakeholders And Corporate Culture (Bev's Notes)

Front 1

What is a macro environment?

Back 1

It is broad operating conditions in which the business operates and over which it has no control.

Front 2

What is an operating environment?

Back 2

It is the environment immediately external to a business with which it has close interaction when conducting business activities.

Front 3

What is an internal environment?

Back 3

Activities, functions and pressures that occur within a business over which it has control.

Front 4

What are the interests and issues of a shareholder and what level of business environment are they considered to be in?

Back 4

Their interests and issues include the profitability of the business and to receive their dividends and they are considered to be apart of the internal environment

Front 5

What does dividends mean?

Back 5

a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).

Front 6

What are the interests and issues of the directors for a company or partners in a partnership and what level of business environment are they considered to be in?

Back 6

Their interests and issues include to develop and direct strategy and major business decisions and to be well remunerated (money and share options). They are apart of the internal environment

Front 7

What are the interests and issues of management and what level of business environment are they considered to be in?

Back 7

Their interests and issues are to be involved in setting goals and objectives and to achieve those said goals and objectives. They are apart of the internal environment

Front 8

What are the interests and issues of employees and what level of business environment are they considered to be in?

Back 8

Their interests and issues are to receive a fair wage or salary and to work in a non - discriminatory and ethical workplace. They are apart of the internal environment

Front 9

What are the interests and issues of Trade unions and what level of business environment are they considered to be in?

Back 9

Their interests and issues are to negotiate for their members fair wages, working conditions, working hours and other related work issues and to also be represented in the workplace. They are apart of the operating environment.

Front 10

What are the interests and issues of customers and what level of business environment are they considered to be in?

Back 10

Their interests and issue are to obtain quality goods and services and to receive high levels of customer service (pre and post sale). They are apart of the operating environment

Front 11

What are the interests and issues of suppliers and what level of business environment are they considered to be in?

Back 11

Their interests and issue are to ensure their customers' business is profitable (so they get paid) and to be paid promptly. They are apart of the operating environment.

Front 12

What are the interests and issues of Creditors/ banks and what level of business environment are they considered to be in?

Back 12

Their interests and issues are to be paid repayments, both principal and interest, due on loan and to be repaid loans in full. they are apart of the operating environment.

Front 13

What are the interests and issues of Community/ society and what level of business environment are they considered to be in?

Back 13

Their interests and issues are to benefit from the employment opportunities created by the business and for the business to participate in their community. They are apart of the macro environment

Front 14

What are the interests and issues of Government and what level of business environment are they considered to be in?

Back 14

Their interests and issues are to receive taxation revenue from profitable businesses and to provide incentives for businesses to relocate to benefit a community. They are apart of the macro environment

Front 15

What are the interests and issues of Competitors and what level of business environment are they considered to be in?

Back 15

Their interests and issues are to ensure they gain a competitive edge over the business and to differentiate their product or services from their competitors. They are apart of the operating environment

Front 16

What is the meaning of ethics in business?

Back 16

It is a set of moral principles that a business needs to establish and follow

Front 17

What is corporate culture?

Back 17

It is a system of shared values and beliefs of people within a business.

Front 18

What are the observable elements of corporate culture?

Back 18

The ARTEFACTS: theses are clearly visible such as language, symbols, objects, appearances etc

Front 19

What are the Non-observable elements of corporate culture?

Back 19

The Values: these include shared rules residing just below the surface that influence/control people's behaviour.

The Assumptions: these include beliefs about human nature and environment that reside just below the surface, and are taken for granted

Front 20

What is the difference between official corporate culture and real (unofficial) culture?

Back 20

Official corporate culture is the desired culture a business wishes to establish where as real (unofficial) culture s the actual or prevailing culture that exists within a business.

Front 21

What is a mission statement?

Back 21

A written statement that defines a business's core purpose and focus

Front 22

List the strategies to develop corporate culture (official and real)

Back 22

- The creation of formal written mission, vision and values statement.

- Establishing management structures

- Choice of management styles

- Implementation of policies

- Official business documentation and forms of communication

- People

- Physical environment and material symbols

- Stories, narratives and rituals

Front 23

How does the creation of formal written mission, vision and values statement effect the corporate culture?

Back 23

As a mission statement sets the values and defines the purpose of the business. This sets what is important to the people within the business.

Front 24

How does Establishing management structures effect the corporate culture?

Back 24

The way in which the different parts of a business are formally arranged in order to link management, employees and their functions can help to shape the corporate culture.

Front 25

How does Choice of management styles effect the corporate culture?

Back 25

The choice of management style reflects the values and the type of business they run. For example, an autocratic style will suite a highly structured business, where great emphasis is placed on achieving tasks and following establishing processes.

Front 26

How does Implementation of policies effect the corporate culture?

Back 26

In order to establish and reinforce the corporate culture of a business, the policies and practices within a business should reflect the values of the business. This is because policies tell employees what to do and how to do it in a given situation.

Front 27

How do Official business documentation and forms of communication effect the corporate culture?

Back 27

The branding of a business is an important factor when developing the official culture of the business because it represents how the customers view the business.

Front 28

How do people affect the corporate culture?

Back 28

People effect the business culture through the way the act and interact with one another, the culture is reflected through the people of the business.

Front 29

How does Physical environment and material symbols affect the corporate culture?

Back 29

It affects the corporate culture by giving the setting of the business hence showing the attitude of the business, for example say if it was and open-plan office this would promote lateral communication, team building and collaboration.

Front 30

How do Stories, narratives and rituals affect the corporate culture?

Back 30

It affects the corporate culture by helping to underscore the importance placed on the positive benefits gained through social interaction in the workplace and celebration of a job well done. A positive corporate culture is a vital component for any business in developing and maintaining its competitive edge.