Business strategy, at its heart, is about beating the market; that is, defying the power of “perfect” markets to push economic surplus to zero. Economic profit—the total profit after the cost of capital is subtracted—measures the success of that defiance by showing what is left after the forces of competition have played out.
Content: Quotation
Authors: Chris Bradley, Martin Hirt, Sven Smit
Source: McKinsey Quarterly
Subjects: Economics, Strategy
Authors: Chris Bradley, Martin Hirt, Sven Smit
Source: McKinsey Quarterly
Subjects: Economics, Strategy
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