Corporate Influences MindMap
- Created by: TashaWilliams99
- Created on: 17-11-16 11:41
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- Corporate Influences
- Short-termism is when the actions of the managers focus on immediate issues rather than long-term ones.
- These managers often use long term phrases such as aims, missions, strategy and legacy.
- Staff soon learn that they mainly focus on this year/months budget.
- Symptoms of short-termism:
- Inadequate expenditure on R&D.
- Adjustments that inflate current earnings.
- Disregard for longer-term risks.
- Focus on acquisitions not growth.
- Causes of short-termism
- Relationship with financial markets.
- Plc structure encourages short-termism.
- Earnings per share to judge bonuses.
- Effects of short-termism
- Reluctance to invest in R&D
- Ignoring long-term opportunities.
- Decisions may only be wise in the short-term.
- These managers often use long term phrases such as aims, missions, strategy and legacy.
- Long-term thinking: the German Mittelstand
- The German business sector is dominated by family-run, medium sized businesses; Mittelstand.
- Untitled
- German news reports on business issues and market opportunities.
- Four key things to Mittelstand:
- Family-owned
- Humane management
- Long-term
- Focus on doing one thing well.
- The German business sector is dominated by family-run, medium sized businesses; Mittelstand.
- Short-termism is when the actions of the managers focus on immediate issues rather than long-term ones.
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