Influences on Decision-Making (AQA A Level Business) : Revision Note

A mission states the organisation’s guiding purpose; decisions must support it

The John  Lewis Partnership commits to 'Working in Partnership for a Happier World', so managers involves staff in key decisions such as store refurbishments

Day‑to‑day decisions aim to hit agreed targets on sales, profit, market share, etc

Tesco’s 2024/25 goal of  4 % sales growth in the UK informed the decision to extend its Clubcard Prices promotion and Aldi Price Match deals

Ethical principles, such as FairTrade, sustainability and social justice, can rule options in or out, affecting decision-making

Lush does not use single‑use plastic, so it invests in “naked” shampoo bars and deposit‑return pots even when cheaper packaging exists

Decisions must fit the money, time, skills and capacity available

Electric vehicle manufacturer Arrival put its electric bus project on hold in 2022 because cash and engineering resources were tight, choosing to focus its funds on its delivery van launch instead

Actions taken by rivals can force a business to take defensive or matching actions

As Lidl's reputation as the UK's cheapest supermarket has grown, rivals such as Tesco and Sainsbury’s have extended their price‑match tactics

Interest rates, inflation and GDP growth affect costs and demand

In 2024 the Bank of England reported that many UK firms cut investment plans or delayed projects as a result of rising interest rates

Shifts in customers' tastes and values or demographic change can impact demand

Growing vegan and flexitarian diets led McDonald’s UK to launch the McPlant burger nationwide after a successful trial

New technology creates opportunities and leads to some products or roles becoming obsolete

Self‑service machines in UK supermarkets have reduced the number of traditional cashier roles

Many workers have been moved to theft prevention or shelf‑stocking duties instead