Reflection on the Importance of Long-Term Strategy

This article by Thomas Olesen discusses the newly arisen phenomenon of short-termism. There is evidence that the business community currently chases short-term strategies with little to no regard for long-term performance, thus limiting the potential long-term growth prospects of companies.

Last modified: 05.02.2018

Limitations include revenue, profit, job creation, research & development (R&D), shareholder returns, and the economy as a whole.

The article is based on three main sources of data: consultancy reports, multinational companies, who have already realised this increasing problem, and an analysis of two cases of private equity controlled global companies that act with mostly long-term growth strategies in mind. Suggestions are made for how the business community can manage short-termism, where the process is visualised in a framework.

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Author of the article

Thomas Olesen
Thomas Olesen
MSc International Business Economics
Graduate 2017

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