Corporate Influences

• short term decisions: impact objectives and tactics over the next few years
• long term decisions: affect the long term mission and vision over next 10 years
• features of a short-termism approach

  • maximise short term profits
  • minimise research and development
  • maximise returns to shareholders
  • pursue rapid external growth rather than organic
  • invest less in human resources eg training
  • prioritise short term contracts with suppliers
• evidence based decision making: involves taking a systematic and fact-based approach when determining objectives, strategy and tactics
• when may a subjective based decision making appraoch be more appropriate?

  • when decisions need to be made quickly
  • nature of industry
  • lack of data available
  • leader is persuasive and single-minded