Business A level essay. Can smart ppl give advice on this and how to amend. Thanks Watch

DatGuy54
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“The Directors of PLCs sacrifice long term investment and innovation for short term profits” – Discuss (20 marks)

“The directors of PLCs sacrifice long term investment and innovation for short term profits”. The side in which would agree for this statement has understandable reasons. These reasons may include that survival is a very important thing. Having short term profits would mean that the business won’t go bankrupt too soon. Even if this is for the moment, it will still prove to be more useful than not having the money there and struggling to pay what is required.

Another key reason for this statement is that in some cases, showing that the business is making a lot of money within a small amount of time could attract a lot of potential investors, which will increase the number of shareholders for the company. Shareholders may not be as interested in the company if the profit is very minimal, careless of the consistency. Short term profits would definitely attract these shareholders/investors.

As great as the reasons for are, there are also many reasons against this title. These may include that the business growth will be affected massively. Having short term profits is living for the moment, but after the time is up, it may be harder than imaginable to survive and even to grow in numbers would not be easy. If they simply kept profits coming at a consistent rate over a huge amount of time would prevent rainy days occurring often.

Another reason is that innovation is important for most companies. Innovation is what happens constantly and gives the company fresh ideas which increases sales. An example of where innovation is the consistency of profit is in the phone industry. Brands like Samsung and Apple are constantly creating new fresh product ideas which interest consumers to keep switching phones every few years (or even less than every year). Phones were just for ringing people before, but now thanks to the innovation behind it, they withhold stunning cameras, huge OLED display screens and have such small compact designs which make them so easy to hold. This PLC needs innovation or else they won’t be selling many if their products. Their opponents in the oligopoly will take over them with their better technology and sooner or later, the plc will die out. It is very important to constantly be innovative with their products or else there is no reason to be witching phones in that plc.

In conclusion, I personally believe that the business should not sacrifice innovation and long-term investment for short term profits. This is because a business that focusses too much on short term profits may not make the expenditures to keep the company competitive in the future. Sacrificing innovation prevents the company from being unique and superior to other companies in that niche market.
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