Corporate Influences MindMap

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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.
    • 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.


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