Long Term Vs Short Term Bias - Marketing Research

Long Term Vs Short Term Bias
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Long Term Vs Short Term Bias
Companies that operate at the global level experience disadvantages emanating from the intense pressure on the management hence they need to give convincing reports quarterly and annually regarding their financial performance. Thus, short term bias or mental tendency and inclination with prejudice is exhibited in such enterprises. The inclination towards short term benefits such as high profits regardless of the mean of their achievement such as layoff of employees, consolidation and cost-cutoff measures which lead to neglect of long term benefit is understood as short term bias. On the other hand, focusing on long term benefits in business without taking into consideration the short term benefits are regarded as long term bias (Business Day, 1986). The tendency of focusing on short term bias and neglecting the long term benefits is rampant among the current enterprises that are centered on improved performance, avoidance of risks and high for profits. However, these entities normally have implications in the long run and opt out of business due to short term planning. The discussion herein presents the reasons why most enterprises focus on short term bias.
Most businesses prefer short term bias to seize short term opportunities hence they tend to build a niche and market shares for their operations. Besides, due to limited capital for the long ...