Final answer:
A firm with a short-term orientation focuses on immediate profits by cutting back on vital areas such as R&D, investment, research, and advertising. This approach can have negative consequences for long-term growth and competitiveness.
Step-by-step explanation:
The firm with a(n) short-term orientation focus mortgages its future by indiscriminately cutting back on R&D, capital investment, marketing research, and/or advertising. This approach may generate quick profits in the short term, but it can have negative long-term consequences for the company's competitiveness and growth.
By neglecting investments in research and development, the company may fall behind competitors in terms of innovation and new product development. Cutting capital investment can result in outdated facilities and equipment, affecting productivity and efficiency. Lack of marketing research and advertising can lead to decreased market share and customer awareness.
Therefore, while a short-term orientation may offer immediate financial gains, it is important for firms to balance their focus on short- and long-term goals to maintain sustainable growth and success.