University:
College
Course:
College Economics
Academic year:

2023
Views:

353

Pages:

2
Author:

Sergio P.

Getting to management action: The Additional Problem of Economics Even if particular succes we can Identify or indeed the the source cause Failure, it is a big jomp to assur a suitable action can of の of a particular assuming that be taken at no cost even at a cost which is justified by the subsequent benefits. Whe thure fore need to overlay of practical significance significance explain plain a Factor with Factor or set significant proportione be used at as a our notion one of economic of Factors which of sucess can also decision rule for subsiquent sucessful management action, this is is big jump. To return to the market share / ROI relationship, even If we conclude that there is a significan't correlation between market share and profitability, we have to make two & urther assumption to justify an economic rule of investing. First we In morket shore. From the more general have to move from notion of coretation of explanation to the much more one of causation. Secord, we have to somehow underpriced. If our first assumption spacific one of cau assume that whatever Its benefits, market shore 13 correct then broadly it can only be underpriced if either our competitors, both current and an potential have a different view or, for some unspecif어 reason, happen to valve the asset (market shore) significanty lower then we do. In fact, in specific situations this latter assumption may be rather less unlikely than it at first appears: our competitors coul indeed value the benefits differently given their differing portofolic of upsets and market positions..

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