Asked by Paige Gratton on Apr 28, 2024
Verified
Which of the following strategies would most likely be used by a firm trying to close a profitability gap?
A) decreasing the yield
B) reducing investment intensity
C) selling new products to new markets
D) outsourcing value-added activities to suppliers
Profitability Gap
The difference between the actual profitability of a business and its potential profitability under optimal conditions.
Investment Intensity
Indicates the level of capital required to generate revenue within a business or industry, reflecting the nature of assets and resources needed.
Value-Added Activities
Operations or processes that increase the worth of a product or service to customers, thereby enhancing its market value.
- Acquire insight into the methods a business may utilize to address gaps in sales and profits.
- Understand the implications of choosing specific strategies to address profitability issues.
Verified Answer
Learning Objectives
- Acquire insight into the methods a business may utilize to address gaps in sales and profits.
- Understand the implications of choosing specific strategies to address profitability issues.
Related questions
A Firm Trying to Close a Profitability Gap Is Concentrating ...
A Large Retail Firm Is Experiencing a Significant Sales Gap ...
Robert McIntosh, a Realtor, Is Showing a New Apartment to ...
Stage Technologies Is a London-Based Company That Supplies Engineering Solutions ...
Which Closing Technique Can Be Used by Salespeople If They ...