Short term pressures may be defined as the factors which may lead to an overall increase in the rate of discount applied either explicitly or implicitly and the process involved in shortening of the time horizon for the purpose of investment. Higher would be the rate of discount and the shorter will be the time of horizon, and more will be the short term pressure. Thus, short term pressures can be regarded as the neglecting in the short term pressures and neglecting of the short term goals. Thus, short termism can be defined as the insufficient attention to the long term creation of the firm of an institution. The primary focus of the short terms goals avoids the focus on the long term objectives. A number of short term objectives lead to the insufficient attention in the strategy related to the long term value creation for any firm. Another harmful impact of the short term pressure is that it leads to the neglecting of the activities which are related to the process of investment. Because of the same, there is the reduction in the overall international competitiveness of the firms and their capabilities to give response to the new challenges which are there in the market. Thus, the short term goals lead in the overall reduction in the potential of individual companies and the whole economy as well.