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Georgia College Profitability Measures and Lady Gaga Career Strategy Discussion
1. A firm’s strategy can be described in terms of the answers to two questions: “Where are we competing?” and “How are we competing?” Applying these two questions, provide a concise description of Lady Gaga’s career strategy (see Strategy Capsule 1.2).
2. Table 2.1 compares companies according to different profitability measures.
Which two of the six performance measures do you think are the most useful indicators of how well a company is being managed? Is return on sales or return on equity a better basis on which to compare the performance of the companies listed?Several companies are highly profitable yet delivered very low returns to their shareholders during 2017. How is this possible?
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