Decision Making

Setting objectives >> Gathering Information>>Selecting suitable strategy>>Implementing

the Strategy>>Reviewing

Contingency Planning (Plan B)

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◆ A strategy is a long- term plan that involves a considerable commitment of resources.

◆ Tactics are short-term plans that implement the strategy.

◆ Ethical behaviour is behaviour that is thought to be morally correct, and not necessarily
the most profitable.

Stakeholders are groups or individuals who have an interest in a business.

Internal stakeholders include:
● the owners of the business
● the business’s employees.
External stakeholders include:
● suppliers
● customers
● the government, both local and national
● banks
● the community.
  Internal stakeholders are individuals and groups within a business, for
example employees.
 External stakeholders are groups outside a business, for example people
who are interested in the business or the government.

The stakeholder concept:

Many organizations are now trying to work with their stakeholders and regard
them much more as partners. The cooperative approach is known as the
stakeholder concept. This view believes that it is better than a long-term to
treat stakeholders well.

Methods of conflict resolution

 Arbitration – to resolve industrial disputes between workers and
managers

 Worker participation – to improve communication, decision-making and

reduce potential conflicts between workers and managers, e.g. works
councils, employees, directors.

 Profit-sharing schemes – to reduce conflict between workers and

shareholders over the allocation of profits and to share the benefits of
company success.

 Share-ownership schemes to reduce conflict between workers, managers

and shareholders