Short term or long term view? essay

The most suitable management model in this case would be to have the right balance between the short term and long terms goals. This implies that a manager needs to set up both long and short-term goals for the organization. Furthermore, the short-term goals developed should be in line with the organization’s long-term goals and objectives. The main reason for this observation is that a manager can easily breakdown his long-term goal into smaller more manageable short-term goals that eventually lead up to the long term goal set for the organization (Covello & Hazelgren, 2006).
This will help in ensuring that the manager stays focused since the small achievements will work towards motivating the organization towards its long-term goals. Additionally, slowly working towards a long-term goals helps to eliminate the problem of staying focused. In order to achieve this, a manager must be able to prioritize his or her short and long-term goals. Prioritizing can be achieved by setting the long-term goals first. This is important as it will provide the manager with a sense of direction and provide the organization with purpose. Once this has been achieved then numerous short-term goals can set aimed towards achieving the long-term objectives.
The right balance between short term and long-term goals can be seen in the table below. For example, if an organization seeks to increase its revenue by 40% over a 5 year period. This can easily be broken down into short and incremental 10% increases every year that eventually enable the organization achieve its goals and objectives in the end.

Reference

Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial Finance. San Diego, CA: Bridgepoint Education Inc.
Covello, J. A., & Hazelgren, B. J. (2006). The complete book of business plans: Simple steps to writing powerful business plans. Naperville, Ill: Sourcebooks. a