Final answer:
Businesses plan for both the short run and long run, with the latter allowing for expansion and growth. Strategic planning with set goals is crucial for long-term success and involves understanding economical factors like the business cycle and GDP. Adjustments and expansions become feasible over several years, contributing to a business's longevity and market presence.
Step-by-step explanation:
Indeed, businesses not only operate in the short run but also plan and strategize for the long run. While the short run may involve adapting to immediate market demands, it is in the long run that businesses can expand production, scale operations, and undertake significant growth initiatives. Planning for the long run involves setting clear goals and outlining the steps necessary to achieve those goals, a process which provides clarity, momentum, and motivation. This strategic planning is essential for staying on track towards achieving long-term career targets and for the overall success of a business.
For instance, in the short run, it might be costly or challenging to open new stores or expand facilities. However, with proper planning and goal setting, businesses can achieve these expansion goals in the long run. This strategic growth and expansion reflect an understanding of the business cycle, the effects of inflation, and overall Gross Domestic Product (GDP) impacts, as well as the need to maintain or improve productivity to remain competitive in a constantly evolving market.