I would like to get a 9/10 on this essay : ) My course is about business strategy and the following is the hint on how to write this question:
How would one evaluate if a business has achieved sustained superior performance?
Obtain data to compute profitability (ROIC: ROA is a good proxy. ROA=Net
Income/Total Assets) and profit growth (annual % change in net income) for the chosen
company for a period of about 5 years
Obtain similar data for competition (average for companies in the industry, or average for
a group of close competitors)
Graph ROIC and profit growth for the chosen company and the competition
Draw your inference
Note that a business could have declining ROIC and declining profit growth, yet perform
superior to competition
