A firm's financial performance that consistently outperforms its industry's peers is known as operational effectiveness.

Question

Quizplus · Accepted Answer

Operational effectiveness refers to performing similar activities better than rivals, which includes efficiency in production, delivery, and other areas. A firm's financial performance consistently outperforming its industry's peers could be due to a combination of factors including operational effectiveness, strategic positioning, innovation, and market conditions, rather than operational effectiveness alone.

A Firm's Financial Performance That Consistently Outperforms Its Industry's Peers