What Are the Ingredients Required by a Firm to Gain

question 82

Essay

What are the ingredients required by a firm to gain and sustain a competitive advantage?

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Definitions:

Scenario Analysis

The process of examining and evaluating possible events or scenarios that could affect the outcome of a decision or investment.

Operating Cash Flow

Cash generated by a company’s normal business operations, indicating whether a company can generate sufficient positive cash flow to maintain and grow its operations.

Degree Of Operating Leverage

The Degree of Operating Leverage measures how a company's operating income changes in response to a change in sales, indicating the sensitivity of profits to variations in sales volume.

Operating Cash Flow

Cash generated from a company's regular business operations, indicating its ability to generate sufficient funds to maintain and grow operations.