Business Values & Culture (AQA A Level Business): Flashcards
Exam code: 7132
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Define business values.
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Cards in this collection (28)
Define business values.
Business values are the core principles and beliefs that guide how a business and its employees behave, make decisions and treat others.
Business values are often expressed in a business's _____ statement.
Business values are often expressed in a business's mission statement.
Why do business values become more important as a business grows?
As a business grows, senior managers can no longer oversee every decision directly. Shared values help ensure consistent behaviour across the business.
How can business values help a business stand out from competitors?
Values can differentiate a business from competitors, particularly where customers increasingly favour businesses seen as ethical or socially responsible.
Define business culture.
Business culture is the shared values, attitudes and beliefs that characterise a business, often described as "the way things are done" within an organisation.
True or False?
Business culture develops largely by accident.
False.
Culture is not accidental. It develops through deliberate choices and influences that build up over time.
How can organisational structure influence business culture?
A tall, hierarchical structure can create a formal, cautious culture. A flatter structure often supports a more open, collaborative culture.
How can a business's reward systems influence its culture?
Pay, bonuses, recognition and promotion signal which behaviours are encouraged or discouraged, so they shape how employees act.
Rising societal concern over climate change has encouraged many businesses to embed ____________ into their core culture.
Rising societal concern over climate change has encouraged many businesses to embed sustainability into their core culture.
What is a positive business culture?
A positive business culture is one where employees feel trusted, valued and motivated, and where everyday behaviour is in line with the business's stated values.
How can a positive business culture increase productivity?
It improves employee motivation, engagement and morale, which can increase productivity and reduce employee turnover.
True or False?
A high-pressure, target-driven culture may increase sales in the short term but risks high employee turnover.
True.
Sales may rise in the short term. However, this kind of culture risks burnout, high employee turnover and staff mis-selling to meet targets.
What is a negative business culture?
A negative business culture is one where trust, communication or morale have broken down, often leading to behaviours that conflict with what the business claims to stand for.
How can a negative business culture increase costs?
It can raise costs through absenteeism, conflict and poor customer service. High staff turnover also makes it harder and more costly to recruit and retain talented employees.
Why might poor business performance lead a business to change its culture?
If current practices are not achieving the desired results, a new culture can improve motivation, introduce more efficient ways of working and help regain competitiveness.
Why might a new leader change a business's culture?
New leaders often bring their own values and ideas. Changing the culture aligns the business with the new leader's vision, giving employees consistent decisions and clear direction.
When two businesses combine through a merger or ______, blending their cultures helps unite employees around shared goals.
When two businesses combine through a merger or takeover, blending their cultures helps unite employees around shared goals.
True or False?
Changing market conditions usually call for a more rigid culture so employees stick to proven methods.
False.
Rapid shifts in technology, customer expectations or competitor behaviour call for a more flexible culture, so employees can innovate and respond quickly.
What are the risks of ignoring societal and ethical pressures for cultural change?
Failing to respond to these pressures can damage reputation, customer loyalty and profitability.
Why might employees resist cultural change?
Employees may fear the unknown, worry about job security or be attached to existing routines and values.
True or False?
The benefits of cultural change can take a long time to appear.
True.
Cultural change is time-consuming because it involves altering deep-seated behaviours and mindsets. This delays the anticipated benefits.
Why can cultural change be costly and disruptive?
It often requires significant investment in training, restructuring and communication, which can disrupt daily operations and strain finances.
How can cultural change lead to a loss of key staff?
Employees who feel the new culture does not align with their values may become dissatisfied and leave, taking valuable experience with them.
What problems can incompatible cultures cause after two organisations merge?
Misaligned values can lead to misunderstandings, conflicts and reduced collaboration across the workforce.
A positive culture helps a business respond quickly to new opportunities because it encourages staff to make faster, more _______ decisions.
A positive culture helps a business respond quickly to new opportunities because it encourages staff to make faster, more confident decisions.
How can a positive culture support innovation?
Employees who feel trusted and empowered are more likely to suggest and develop new ideas.
How can a positive culture help a business recruit skilled people?
A strong reputation as an employer makes it easier to recruit skilled people than rivals with a poor reputation, and helps retain talented staff.
True or False?
A culture of hitting targets at any cost always improves competitiveness.
False.
Pressure to meet targets at any cost can encourage poor decision-making or unethical practices, causing reputational damage that pushes customers towards competitors.
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