Long Term Goal & Short Term Sacrifice

To achieve your long term goal you need to make short term sacrifice.

Never be in a hurry to get a promotion or to conquer more sales or business.

To achieve your big dreams in the long term, it requires patience to establish your foundation.

Only thru a solid foundation one can dominate the market because they care strong.

In today's environment, CEOs and leaders are pressured by stakeholders and the public to deliver short-term results.

A leader with a vision must know how to balance delivering short term results and making preparation for bigger dreams thru building a solid foundation.

What are the long term goals and short sacrifice you as a leader have to make?

The short term sarifice you make in this short term may cost you money and will not reflect immediate profits. However it prepares you to achieve your long terms big goals.

Let's take some business examples on waya to invest in your short term that will pay off later in the future.

1. Vertical Control

A company can exercise vertical control in three primary ways, depending on where it expands within the supply chain. This strategic approach allows businesses to optimize their operations, enhance efficiency, and improve their competitive position in the marketplace. Understanding these methods is crucial for any organization looking to gain a stronger foothold in its industry.

• Backward Integration (Upstream): This strategy involves the company gaining control over functions that are closer to the raw materials or initial production stages of the supply chain.

  
  

  By moving upstream, a company can secure its supply sources, reduce dependency on suppliers, and often achieve cost savings through increased efficiency.

  
  

  This integration not only allows for better quality control but also enables the company to innovate and enhance its product offerings based on direct access to raw materials.

  
  

  • Example: A coffee shop chain acquiring or setting up a coffee bean farm to ensure a stable supply of materials and control quality. By owning the farm, the coffee shop chain can monitor the cultivation processes, select the best beans, and maintain consistent quality standards, which is vital for brand reputation and customer satisfaction.

    
    

• Forward Integration (Downstream): In contrast, forward integration involves a company gaining control over distribution and sales channels, effectively moving closer to the end consumer.

  
  

  This approach allows businesses to have a direct relationship with their customers, gather valuable feedback, and tailor their offerings to meet consumer demands more effectively.

  
  

  By controlling the distribution process, companies can also enhance their marketing efforts and streamline logistics, ultimately leading to improved sales performance.

  
  

  • Example: A manufacturer of clothing opening its own retail stores or e-commerce website to sell products directly. By bypassing traditional retail channels, the clothing manufacturer can capture a larger share of the profit margin, create a unique shopping experience, and build a strong brand identity that resonates with consumers.

    
    

• Balanced Integration: This strategy involves a company integrating in both backward and forward directions, aiming to control the entire supply chain from raw materials to the final sale.

  
  

  By adopting a balanced approach, a company can mitigate risks associated with supply chain disruptions, optimize its operations, and enhance its overall market position.

  
  

  This comprehensive control enables businesses to respond swiftly to market changes and consumer preferences while maximizing efficiency across all stages of production and distribution.

  
  

  • Example: Apple designs its own hardware and software, sources components (partially owns suppliers), and sells through its own Apple Stores. This level of integration allows Apple to maintain tight control over its product ecosystem, ensuring that every aspect of its offerings meets the high standards of quality and innovation that customers expect. By managing both the supply and distribution processes, Apple can provide a seamless experience for users while maximizing profitability.

2. Competitive advantage against the competition

To develop a competitive advantage, you need to invest in systems that put you ahead of your competitors. Small sacrifice today, but big results in the long run.

1. Speed of execution: Company organisation is structured in a way that is well coordinated that focus on agility to adapt and flexibility to manuever in the fast changing market.

For example, Amazon is able to shipout products faster than any other competitors. They are able to coordinate the odering system, and logistics at a speed that gives them a competitive edge.

2. Innovation and technology: A lot of time is spent on the foundation of the R&D department to ensure they have the facilities and resources to get them to innovate and develop new products better and ahead of the competitors.

Like in The Art of War, successful battles are won through preparation before war.

As Sun Tzu says,

Hence, the skillful commander secures a position that makes defeat impossible and does not miss the opportunity to defeat the enemy.

According to Sun Tzu, our short-term efforts should be directed towards preparing and positioning ourselves for success. By being well-prepared and strong, we will excel and accomplish our long-term objectives.

The short term spent on preparation provides to grab more opportunities that comes to our way.

By sharpening our skills we can win. Discover how the Art of War can prepare you for victory.