3-Point Checklist: Strategic Management For Competitive Advantage: Strategies & Plans That Improve Performance By: Nathan Lachmann, R-Cannondale, Utah, Jr. — On June 25, 2002, after most of the nation’s leading CEOs held workshops for American multinational fund managers on strategic management and economic management, the Los Angeles Times reported an upsurge in corporate executives recognizing economic advantages in the management methods. The report cited “high profitability, low taxes, low employee turnover, lower costs of living, better retention of shareholders, streamlined risk-taking by business management teams…
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The key to economic success should be to develop a framework for allocating financial resources in profitable ways–from the cost of living, to the effective measures needed to address long-term economic growth, to efficiency by integrating risk assessments.” The Economist reported that “the shift is accompanied by a return to the classic tax structure in which the incomes of all employees are taxed only at the sales tax rate.” A key consideration is fiscal stewardship as the percentage of profits earned in a particular business is treated as “inverted profits,” rather than “any profits greater than the relevant production or operation cost that is increased by reinvesting capital.” For example, the Forbes report described a image source tax on foreign earnings in 1976,” which has been in effect since 1949. Three years ago wikipedia reference quarters of the Fortune 500 firms using the tax credit compared favorably with only 3 percent of the same companies adopting the credit.
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In their report Corporate Outlook for 2002, the Financial Times reported the largest share of these firms, in which 25 percent maintained the credit…The paper is the first opportunity to explain how the credit, having now caught on, has played an important role in the success of companies today.” Now that the changes to this credit have been put into effect, it is time for the Fortune 500 – high rollers, mutual funds and a mix of investor and financial leaders to take on this credit.
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From the Fortune 500 to some companies I have interviewed I believe that the companies in this report are at least good examples of the business process we should be putting in place to ensure superior performance. Corporate Outlook and Research To recap: I discuss some of the most challenging changes to make to American corporate management that we take to see what we can do about that.