Should a Company's Strategy Be Tightly Connected to Its Quest

question 46

Essay

Should a company's strategy be tightly connected to its quest for competitive advantage? Why or why not? What difference does it makes whether a company has a sustainable competitive advantage or not?

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Definitions:

Accounts Receivable

Funds that are owed to a company by customers for goods or services delivered or used but not yet paid for, typically within a short-term period.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collectible.

Bad Debts Expense

The amount of receivables that a company does not expect to collect and thus writes off as a loss in its accounting records.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's accounts receivable are collected during a specific period.