Which of the following is NOT a limitation of the economic value creation framework?
A) The framework falls short when managers are called upon to operationalize competitive advantage.
B) The framework is not as effective as accounting profitability or shareholder value creation when the need for "hard numbers" arises.
C) The framework fails to provide the foundation that will help firms decide between cost-leadership or differentiation strategies.
D) The framework cannot be effectively applied for assessing corporate-level performance of diversified conglomerates.

Question

Quizplus · Accepted Answer

The relationship between economic value creation and competitive advantage is fundamental in strategic management. It provides the foundation upon which to formulate a firm's competitive strategy of cost-leadership or differentiation.

Which of the Following Is NOT a Limitation of the Economic