Question

Analysis of the industry's profit pool enables strategic managers to

a) Identify competitors' weaknesses
b) Determine market share
c) Understand where the profits are being earned
d) Evaluate consumer preferences

Answer 1

The analysis of the industry's profit pool helps managers understand where profits are being earned.

Step-by-step explanation:

The analysis of the industry's profit pool enables strategic managers to understand where the profits are being earned. By calculating profits through comparing total revenue and total cost, managers can identify the areas of the industry that are generating the most profits. This knowledge can help managers make informed decisions and allocate resources effectively.