Since 80 percent of a firm's profits are often generated by 20 percent of its products, strategic support should be targeted to heavily support those offerings.

Question

Quizplus · Accepted Answer

This statement reflects the Pareto Principle, or the 80/20 rule, which suggests that a small percentage of causes (in this case, products) often leads to a large percentage of effects (profits), indicating that focusing strategic support on those key products can enhance a firm's profitability.

Since 80 Percent of a Firm's Profits Are Often Generated