TITLE

COMMENTARY ON "UNOBSERVABLE EFFECTS AND BUSINESS PERFORMANCE"

AUTHOR(S)
Buzzell, Robert D.
PUB. DATE
January 1990
SOURCE
Marketing Science;Winter90, Vol. 9 Issue 1, p86
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In this article the author comments on a research about business performance conducted by Robert Jacobson. The author suggests that in order to explain the differences in average rates of return among businesses, the PAR ROl model performs very well. This approach helps most business executives and planning specialists to estimate the expected results of a strategy in terms of average performance over a planning period. The transitory factors affects results in any individual year these factors include general business cycles, temporary supply-demand imbalances, labor management disputes and many others. Many important questions about the relative importance of the relationship between Rate of lnvestment and strategic factor, market share, is considered largely spurious. The failure to control for the effects of these unobservable factors leads to overstated estimates of the importance of strategic factors. The author is of the opinion that the estimates of the effects of strategic factors have been exaggerated and are also biased.
ACCESSION #
4479184

 

Related Articles

  • Show Me the ROI. Speer, Jordan K. // Apparel Magazine;Jan2010, Vol. 51 Issue 5, p2 

    The author reflects on expectations in 2010 for the apparel industry noting the proliferation of news pointing to uncertainty in the coming year. She states that such apprehension affects spending decisions by both business and consumer, characterized by requirements of measurable investment...

  • The Impact of Uncertainty on Aggregate Investment Spending: An Empirical Analysis. FERDERER, J. PETER // Journal of Money, Credit & Banking (Ohio State University Press);Feb93, Vol. 25 Issue 1, p30 

    This article explores the empirical relationship between uncertainty and aggregate investment spending. Conventional thought suggests that when investors feel uncertain, or a lack of confidence, in the future, they become unwilling to invest. However, very little research has been done to...

  • Financial Business Cycles. Iacoviello, Matteo // Working Papers -- U.S. Federal Reserve Board's International Fin;8/28/2014, Issue 1116, p1 

    Using Bayesian methods, I estimate a DSGE model where a recession is initiated by losses suffered by banks and exacerbated by their inability to extend credit to the real sector. The event triggering the recession has the workings of a redistribution shock: a small sector of the economy -...

  • Your Biggest Risk: Being Surprised By Surprise. Coates, Joseph F. // Research Technology Management;Sep/Oct2003, Vol. 46 Issue 5, p7 

    Addresses the issue of how business and other institutions become aware of things or events that may create a big opportunity or a serious threat. Comments on an article by Lee Gomes, which focused on the future of technology; Potential sources of surprising developments within a company; Tips...

  • chapter 4: Business Environment.  // South Africa Business Forecast Report;2007 4th Quarter, p31 

    Chapter 4 of the publication "The South Africa Business Forecast Report Q4 2007," is presented which describes the business condition of South Africa.

  • Chemical Fiber Sector Remains in A Period of Growth in 2011. Zhang Yongqing // China Chemical Reporter;2/6/2011, Vol. 22 Issue 3, p26 

    The article presents the performance and business forecast of the chemical fiber industry in China. In 2010, chemical fiber export rose rapidly and reached 861,700 tons, while profit rose by 1.28 times from January to October 2010. Moreover, it is anticipated that chemical fiber sector will...

  • Marine Insurance: Proper Risk Management Key to Success.  // MiddleEast Insurance Review;Aug2008, p35 

    The article presents the business performance forecast of marine insurance companies in Dubai, United Arab Emirates. It notes that the remarkable growth of the country encouraged the creation of new marinas, yacht clubs and marine leisure resorts, thus stimulating the marine insurance industry...

  • Will We Be Fine 'til '09? Watkins, Ed // Lodging Hospitality;7/1/2005, Vol. 61 Issue 9, p2 

    This article presents several definable trends that offer an outlook for the state of the U.S. hospitality industry. Smith Travel Research chairman Randy Smith believes the industry will approach or break the performance records achieved in the late 1990s and culminating in 2000. He believes...

  • Box Shipments Remain Weak.  // Official Board Markets;7/25/2009, Vol. 85 Issue 30, p10 

    The article reports on the business performance in the box shipment market in the U.S. It mentions that box shipment remains to be weak as it fell by 4.3 percent on an actual basis while 8.6 percent on an average week basis. In addition, the first half of 2009 had two less shipping days as...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics