This PPT slide, part of the 106-slide Corporate Performance Measurement PowerPoint presentation, presents a framework for enhancing Economic Profit (EP) within the context of corporate performance measurement. It outlines 3 primary strategies to improve EP, emphasizing operational efficiency, growth, and the cessation of unproductive activities.

The first strategy focuses on raising the efficiency of current operations. This involves generating incremental gains through optimized processes and resource allocation. Companies can look for ways to streamline operations, reduce waste, and enhance productivity. The goal here is to maximize output without proportionately increasing costs, thereby boosting overall profitability.

The second strategy is about achieving economically profitable growth. This means not just increasing revenue, but ensuring that growth contributes positively to the bottom line. Generating incremental revenue streams is crucial. Organizations need to assess market opportunities and align their growth initiatives with sustainable practices that enhance profitability.

The third strategy addresses the need to exit uneconomic activities. This is about making tough decisions to discontinue operations that do not yield satisfactory returns. Immediate exit from these activities can free up resources and allow the organization to focus on more profitable ventures. The slide suggests that this can lead to significant improvements in overall performance.

The structure of the slide is clear and straightforward, making it easy for executives to grasp the key points quickly. Each strategy is succinctly defined, providing actionable insights for decision-makers. This framework serves as a practical guide for organizations aiming to enhance their economic performance through targeted initiatives.

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