Action Profit Linkage Model

The video explains the Action Profit Linkage Model, which helps identify and measure causal links between company actions, customer behaviors, and their economic impact, primarily profitability. It outlines the model's components: company actions, customer actions, and economic impact. The video discusses how these components interact and affect profitability, using a what-if analysis approach to identify areas for strategic improvement.

What is the primary goal of the Action Profit Linkage Model?

• To enhance product quality

• To improve employee performance

• To increase customer satisfaction

• To identify causal links between company actions and profitability

In the context of the Action Profit Linkage Model, what is the ultimate factor that outcomes are linked to?

• Brand reputation

• Profitability

• Market share

• Customer satisfaction

Which of the following is NOT a component of the Action Profit Linkage Model?

• Customer actions

• Market trends

• Company actions

• Economic impact

How does the Action Profit Linkage Model help in strategic improvement?

• By reducing operational costs

• By increasing product variety

• By predicting future market trends

• By identifying areas for process improvement

What type of analysis is used in the Action Profit Linkage Model to explore variations?

• SWOT analysis

• PEST analysis

• What if analysis

• Cost-benefit analysis