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It Would Be Appropriate to Make Operations Accountable for Profitability

question 130

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It would be appropriate to make operations accountable for profitability in an organization that stresses sales and market share over quality and productivity.


Definitions:

Concentration Ratio

A measure of the total output produced in an industry by a given number of firms, used to assess the level of market concentration and competition.

Corporate Concentration

The degree to which a small number of firms control a large market share of the total output or sales within an industry.

Herfindahl-Hirschman Index

A measure of market concentration to evaluate the competitive landscape, calculated by summing the squares of the market shares of all firms in the industry.

Herfindahl-Hirschman Index

A measure of market concentration and competition, calculated by squaring the market share of each firm competing in a market and summing the resulting numbers.

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