A critical review is provided of the conclusions drawn in “An Examination of the Relative Impact of Growth Strategies on Profit Performance”. The conclusions regarding the effect of margin management, asset management and debt management are examined in the context of the Strategic Profit Model (presented in the previous article), using industry data. The discussion of the impact of growth on profitability is extended by the introduction of a financial model that explicitly considers growth′s effect on profitability. Recommendations are presented concerning the integration of the two models for firms evaluating growth opportunities.
Slater, S.F. (1989), "A Comment: An Examination of the Relative Impact of Growth Strategies on Profit Performance", European Journal of Marketing, Vol. 23 No. 6, pp. 34-37. https://doi.org/10.1108/EUM0000000000572
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