Strategy Dynamics Briefing 69: Basing decisions on performance outcomes

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Simplistic and static policies decision-rules, such as ‘spend no more than $X per month‘ or ‘spend Y% of revenue on marketing‘ are clearly way off what is best in most cases, so what exactly is wrong with them? We have repeatedly emphasized that our main aim in commercial cases should be to grow profits or cash-flow, so perhaps our policy on advertizing spend should be based on that measure? Neither of our simplistic policies above takes any account of profit, ...

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