Analysis of Short-Term and Long-Term Planning in Business

This essay critically examines short-term and long-term planning in business contexts. It defines planning as essential for achieving desired goals, differentiating between short, medium, and long-term plans. The essay analyzes the positive and negative impacts of both short-term and long-term strategies, illustrating how short-term plans address immediate issues while long-term plans focus on permanent solutions and competitive positioning. It highlights the importance of employee skills, equipment conditions, and product quality in short-term planning, and the influence of economic, social, and political environments on long-term strategy development. Real-world examples, such as CSR initiatives and market entry strategies, are used to illustrate the practical applications and implications of each planning approach. The essay concludes by acknowledging the advantages and disadvantages inherent in both types of planning, emphasizing the need for a balanced approach in the modern business environment.

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LONG TERM AND SHORT TERM PLANNING
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Introduction
Planning can be defined as the process based on the activities that are mainly required
for the purpose of achieving the desired goals. The planning process is considered to be the
most important part of the achievement of various results based on the objectives that have
been set. The development and proper maintenance of the plan mainly requires the
implementation of different conceptual skills (Bird 2019). Planning is considered to be the
most important activity that is related to the intelligent behaviour depicted by individuals.
The planning process can be of three major types that include short term plans, medium term
plans and long term plans (Boone et al. 2019). The short term and long term plans are
considered to be an quite common for the use of the small and large business organizations as
well. The essay will be based on the analysis of implementation of the short term and long
term based plans by the individuals in order to achieve the objectives.
Critical examination of positive and negative aspects of short term or long term
planning
The owners of various business organizations have developed plans in order to reach
the overall goals and they also aim at separating the process of planning into different phases.
The improvements that have taken place in the proper evaluation of progress towards
achievement of targets and goals are also analysed as a part of the planning process (Burns
2016). The strategic plans of business organizations are developed within the short term or
the long term based framework as well. Short term plans are able to show the results within
one year and on the other hand, long term plans show the results after four to five years of the
implementation (Ferreras, Beatriz Hernandez-Lara and Serradell-López 2017).
Short term planning is developed with the help of analysis that is made based on the
characteristics of an organization and future development of strategies for improvement of

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the firm as well. The examples that are related to the characteristics of organizations taken
into consideration for the implementation of short term plans include the attitudes and skills
of the employees as well. The conditions of equipment related to production and the
problems related to product quality are considered to be short term plans developed by an
organization (Flammer and Bansal 2017). The management of organizations however at
implementing the short term based solutions in order to address various problems or issues
that are faced by them. Servicing of equipments and training courses of the employees are
considered to be a major aspect relayed to development of the short term plans. The solutions
that are developed based on issues faced by the organizations are able to improve the long
term based operations in the industry (Hofer 2016).
The long term plans that are developed by the organizations are related to solving the
problems faced by an organization on a permanent basis and to achieve the overall targets as
well. The competitive situation that has been faced by an organization in the industry in the
economic, social and the political environment leads to the development of long term based
strategies (McKenzie 2015). The strategies are able to influence position of the organization
for the achievement of various long term based goals. The major levels of capital
expenditures like facilities and purchasing the equipments are an important part of the long
term plans that are developed by the firms. The ideas of top management are influenced by
the procedures and policies that have been developed by the organization (Norman 2018).
Positive impacts of short term planning – The short term planning is considered to be
an important part of the operations of business organizations in various industries. The issues
that are currently being faced by the organizations can be solved with the help of short term
objectives that can be fulfilled with the help of collaboration of the employees (Teece 2018).
The short term objectives are mainly set with respect to the ways by which company can
maintain its regular operations. For example, a CSR issue that is faced by a global firm can

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be solved with the help of initiatives that are implemented by the management of the firm
(Shields et al. 2015).
Negative impacts of short term planning – Short term plans are not considered to be
effective for the future operations of an organization in the respective industries. The issues
faced currently by the firm can be solved with the help of the development of short term
objectives. However, the operations of the firms on a long term basis and usage of resources
are not influenced by the short term plans (Shields et al. 2015).
Positive impacts of long term planning – The long term plans can help in analysis of
the future operations of a business organization over the period of four to five years. The
competition that is provided by the external environment based on political, economic and
social factors will be examined in a detailed manner with the help of long term plans. The
company is able to gain insights based on the ways by which resources can be used in
different phases of the planning process (Flammer and Bansal 2017). The employees of the
organization will also be able to get an idea of the direction that has been set in order to
achieve the long term objectives. The employees will also be able to develop a better
perspective towards their work process in the organization and the ways by which the
position of the firm can be improved as well (Boone et al. 2019). For example, the global
organizations need to develop long term plans for the purpose of gaining knowledge about
the new country or market area in which it wishes to enter. The external environment based
factors and levels of competition are considered to be aspects that have to be analysed in
detail in order to develop the appropriate strategies (Ferreras, Beatriz Hernandez-Lara and
Serradell-López 2017). An organization like Walmart will need to develop the long term
plans in order to understand the new market area or country. The analysis of the market and
the political, social and economic environment is able to play a major role in the ways by

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which the company can implement specific strategies in order to maintain the operations
(Boone et al. 2019).
Negative impacts of long term planning – The results that have been gained by the
development of long term plans are not always accurate and are based on the changes that
take place in the external environment. The research and formation of plans is considered to
be a time consuming process and this can have an impact on the amounts of resources. The
implementation of the strategies that are developed is not always possible to be implemented
in an effective manner in different aspects of long term planning process (Burns 2016).
Conclusion
The essay will be based on the analysis of short term planning and long term planning
processes that are implemented by the organizations.in order to achieve the objectives that
have been set by them. The positive and negative impacts of short term and long term based
plans have been discussed in the essay in detail based on the examples of real life examples
that have been offered. The advantages that are provided by the short term objectives and
long term plans are quite huge. However, there are major disadvantages that are related to the
planning that is developed by the organizations in the modern business environment.

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References
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