What is strategy? How does strategy relate to a firm’s profitability? What is the difference between profitability and profit growth? NO PICTURE PLEASE
A strategy is the creation of an action plan to achieve a long-term goal and also to keep all the people in team aware of the required actions to reach that final goal.
A company without a strategy is like a car without the fuel. The car is functional and confident enough to reach the destination but the required fuel is not available. The strategy plays the same role in running the business. Without the strategy, the company might be running the business to a certain extent but if the company wants to improve the profitability then the strategy is important. The strategy provides a long-term goal for the company and guides it through the required steps to reach that final destination.
Profit growth is a combination of profitability and growth. It mainly represents how a company can produce good results financially.Profitability gives the percentage of business growth considering the profit or loss of a business.