Evaluating organizational strategy using accounting data: A template for a fine-grained analysis

✍ Scribed by Parvez R. Sopariwala; Ram Subramanian

• Book ID: 102296239
• Publisher: John Wiley and Sons
• Year: 2004
• Tongue: English
• Weight: 226 KB
• Volume: 15
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.20025

✦ Synopsis

Abstract

A company's operating income can be considered to have three components—growth, price recovery, and productivity. These components can be used to evaluate the success of a company's cost‐leadership or product‐differentiation strategies. The growth component can be further analyzed to incorporate a long‐term view and focus on capacity‐underutilization components so as to capture changes in a company's capacity costs, available capacities, and used capacities. © 2004 Wiley Periodicals, Inc.