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Short versus long-term objectives

The previous section showed how objectives can be long or short-term. It also demonstrated how they could change with time, particularly short-term objectives. These all link with planning and, in particular, corporate (company) planning.

The planning cycle

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Firms need to keep their long-term objectives in mind when they are making short-term tactical decisions. An opportunity may come up, but does it fit with the long-term objectives? Is it so attractive that the long-term objectives should be changed?

Long-term objectives are usually set by the directors, and only changed by them.

Short-term tactical objectives may well be delegated to senior, or middle, managers, who may also have the authority to change them, if necessary.

Changes in short or long term objectives can seriously influence the performance of a company and the morale of the employees. Remember, change is rarely popular, as people often feel threatened by it.