Arnold Company's Return on Sales for the Most Recent Year

question 97

Multiple Choice

Arnold Company's return on sales for the most recent year was 6%. Arnold Company would like to achieve a return on sales of 8% to match those of the current industry leader. This comparison is an example of:

• A)intercompany analysis.
• B)benchmarking.
• C)analytical goal setting.
• D)detail analysis.

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Definitions:

Competitive Strategy

Strategic approaches that organizations adopt to gain an advantageous position over their competitors in the market.

Automation

The technology by which a process or procedure is performed without human assistance.

Low-Cost Leadership

A competitive strategy where a company becomes the most cost-efficient producer in its industry, often allowing for lower pricing to customers.

Chemical Waste

Waste that is made from harmful chemicals and is often a by-product of manufacturing processes, laboratory experiments, and cleanup operations.