The Importance of Segmental Analysis
Most businesses are complex and comprised of various distinct operational sectors, or deal with different products or services, or conduct business in different regions. And that's an excellent thing—the more diversified the enterprise, the higher its chances for survival. I am a big proponent of various diversification strategies. However, when it comes to performance evaluation, diversification creates an additional important angle that cannot be overlooked.
You might have developed the most sophisticated executive reporting system that reflects overall performance, but if asked to pinpoint the exact segments, ...
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