Prior to beginning work on this discussion forum, read the article How ‘The Outsiders’ Became One of the Most Important Business Books in AmericaLinks to an external site..
In his book the Outsiders, Thorndike states, “Over a long period of time, CEOs have to do two things well, they have to manage the business to optimize the profits and after that deploy the profits. Most of what separated these guys from their peers is in that second activity, which has the unwieldy name of capital allocation” (Vardi, 2014, para. 7).
Reflect on that quote and what you have read and answer the following questions:
- What type of metrics should CEO’s use as they make capital allocation decisions?
- Should capital allocation be a priority when it comes to any company’s decision-making?
- Please justify your answers with examples from our books and course readings.
Guided Response: Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least two scholarly or credible resources in addition to the text. The Scholarly, Peer-Reviewed, and Other Credible SourcesLinks to an external site. table offers additional guidance on appropriate source types. Use at least one outside article on the featured CEO in addition to the provided material.