An organization with high profitability, such as Toyota, will be able to develop high organizational slack.

Question

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High profitability allows an organization to have more resources available than are necessary to carry out its core functions. This surplus of resources is referred to as organizational slack, which can then be used for research and development, strategic investments, or other initiatives aimed at promoting long-term growth and sustainability. Therefore, an organization with high profitability, such as Toyota, will typically be able to develop and maintain high levels of organizational slack.

An Organization with High Profitability, Such as Toyota, Will Be