U.S. Airways Conflict between Delivering

Short-term Earnings Vs Long-Term Value

Creation

For any company to be able to provide short-term profits short-term thinking, budgeting and planning is required. On the other hand short-term business decisions are often unable to support the long-term viability of the business leading to heavy losses. This conflict of interest in companies like U.S. Airways is common were the company is responsible to shareholders and fund managers.

To be able to provide short-term earnings decisions supporting current market growth are given priority over those that deal with laying the foundations for longer term value creation of the brand or service. This is supported by the employment packages offered to the top notch employees in large corporations. It mostly encourages them to take decisions with short terms company advantage in mind. A similar story is of those company executives who would be retiring within the next few...
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