An Effective Corporate Strategy Creates Aggregate Returns Across All Businesses

question 136

True/False

An effective corporate strategy creates aggregate returns across all businesses that exceed what those returns would be without the strategy and contributes to the firm's strategic competitiveness and ability to earn above-average returns.

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Definitions:

Profitability

The financial measure indicating the extent to which a business or activity generates income exceeding its costs and expenses, reflecting its economic success.

Supply Chain

A supply chain encompasses all stages involved in fulfilling a customer demand, from raw materials to the delivery of the final product.

Managerial Levers

Tools or mechanisms used by managers to control, influence, or adjust operations within an organization for optimal performance.

Increase Profitability

Strategies and efforts aimed at enhancing a company's financial gains, often through reducing costs, increasing sales, or improving operational efficiency.