Question
The Power Curve, as discussed in the book 'Strategy Beyond the Hockey Stick', is a strategic concept that represents a shift in thinking. It compares companies globally in terms of capital and economic profit. The goal is to move up the Power Curve. Companies that manage to jump from the middle to the top quintile see an average increase of $640 million in annual economic profit. This concept emphasizes the importance of strategic moves and decisions in improving a company's position and profitability.
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The Power Curve brings a fundamental shift in strategic thinking. The comparison is with companies across the world for capital and economic profit. Success is now defined as moving up the Power Curve. Companies that jump from the middle to the top quintile gain an average increase of $640 million in annual economic profit.
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