How Are Short Term & Long-Term Effects Incorporated Into Planning & Policy-Making in a Company?
Any company has to balance short-term business goals with a long-term vision for the business when developing a strategic plan. While it can be tempting to focus on hitting revenue targets for the upcoming quarter, emphasizing that too heavily can have far-reaching long-term effects. A small-business owner has to create a culture where the emphasis on immediate targets doesn’t negatively impact the business.
急速PC28彩票Short-term measures are effective at getting employees focused on specific targets. For example, if you’re looking to push a new project line, setting a sales goal influences your workers to stress its attributes to customers. This can be achieved by setting commission-based compensation policies or offering bonuses to top performers. Short-term effects also are paramount when they’re critical to business needs. A struggling new business that needs to reach its revenue goal to pay back stakeholders may push heavily for current period sales, regardless of discounts required to influence them.
Long-term goals incorporated into the planning and policy-making process may focus on installing the desired company culture or protecting the brand name, so how decisions affect those areas of your business must be considered. You likely have a vision for what you want your company to look like in five years, 10 years or farther into the future – not just in terms of growth, but perhaps also goals related to customer service or your position in the community. Every decision you make needs to consider its long-term effects on reaching those goals.
Short- and long-term effects coexist in a number of ways. For example, a short-term marketing plan may push an upcoming holiday sale and the discounts available to shoppers, while a long-term strategy will be more focused on getting the customer to perceive the brand as dependable and reasonably priced. Both concepts may be included in a single campaign, if the sales flier also touts the product virtues -- the sale can increase revenues now and enhance the brand name going forward. However, a company takes on a risk if the short-term sales needs always hold sway – for example, if you’re constantly running sales to get shoppers to buy. That may cause them to see your merchandise as overpriced and unworthy of investment.
Ideally, short-term goals coincide with long-term objectives, moving your business incrementally down the road to its objectives. Focusing on that can help prevent installing policies with short-term effects that detract from long-term goals. For example, if you own a retail shop that sells luxury watches and want to increase sales, bringing in a line of cheaper knockoffs might have that short-term effect. The long-term outcome, however, might be a dilution of your brand identity and a poorer position in the marketplace. As a small-business owner, you have to keep an eye on the long term when viewing short-term effects of a particular decision. In this case, it might be better to emphasize instead a different brand of luxury watch or accessories that might appeal to a wider segment of the market.
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