3.4 - Influences on Decisions

Question 1

Short termism

Answer 1

Business strategy that prioritizes immediate financial gains, quick returns, and short-term performance over long-term growth and sustainability

Question 2

Advantages of short termism

Answer 2

1. Quick returns
2. Easier to secure funding
3. Flexibility

Question 3

Disadvantages of short termism

Answer 3

1. Employee and customer dissatisfaction
2. Can neglect innovation and sustainability
3. Reputation damage

Question 4

Long termism

Answer 4

Business strategy that prioritises sustained growth, innovation, and stakeholder value over immediate short-term gains. Companies that adopt long-termism focus on future success rather than quarterly profits

Question 5

Advantages of long termism

Answer 5

1. Better employee retention
2. Stronger competitive advantage
3. Financial stability

Question 6

Disadvantages of long termism

Answer 6

1. Slower profits
2. Investor pressure
3. Long-term plans can be disrupted by unforeseen economic changes