Adressing short and long term performance Flashcards
What measures may be assessed with short term?
share price
revenue growth
profit margins
unit costs
roce
What indicates a manager is short-termist?
bonuses based around financial incentives
high dividends little reinvestment
overuse of takeovers
little R + D
Why is short term prevalent?
Stock market focus, reliance on bonuses, frequent changes in leadership
why is long term becoming more popular?
focus on people and the planet too
what is the mittelstand?
privately owned german businesses that employ long term strategies
What are some examples of long-term
family ownership
generational
focus on r + d
investment into workforce
flexibility with external environment
focus on innovation and csr
Why is there less focus on r + d in short term
more interested in output and sales than innovation
not enough time
why do city analysts create short term
They focus on stocks
and bonuses
