Long-Term vs Short-Term, Decision-Making Situations

Long-Term Vs Short-Term
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Long-term vs. Short-term
Businesses face situations that require them to make decisions. Decision-making situations may be for a long-term benefit or short-term benefit. Short-term decision-making can achieved within one year, while long-term decision can be realized within 2 to three years. Short-term decisions are important compared to long-term decisions because they help the business meet the long-term objective (Bansal, P., & Des Jardine, 2014).
For example, if the company's long-term goals if to increase its market share, to meet its objectives mean creating a plan that entails meeting short-term objectives. Short-term decisions help the company achieve its long-term objectives bit by bit. The company moves from one short-term decision to another, hence bringing it closer to its overall long-term goal (Hammond, Keeney & Raiffa, 2015).
Short-term decisions are effective because it enables employees to focus on the set target, for example, if the company wants to establish a new project, its short-term goal is to set sales goals to enable it to meet the target (Hammond, Keeney & Raiffa, 2015). Short-term decisions are important in the situation where a business is struggling to reach its revenue goals to pay back its debts (Hammond, Keeney & Raiffa, 2015). The company may push for short-term decisions to realize its business goals. Most companies try to balance between short-term decisions and long-term vision when developing strategic plans (Huang, Khwaja & Sudhir, 2015).
Most companies are tempted to focus on short-term revenue targets, emphasizing on the short-term decision can affect the business in the end. The best approach is to break down the long-term goals ...