If a firm is to achieve superior profit performance,it is essential that profitability targets are set for managers.If managers focus on the drivers of profitability rather than profitability itself,their efforts will be diffused.

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Focusing on the drivers of profitability, such as customer satisfaction, product quality, and operational efficiency, can lead to a more sustainable and holistic approach to improving profitability. This approach helps in addressing the root causes that contribute to financial performance, rather than just the symptoms.

If a Firm Is to Achieve Superior Profit Performance,it Is