answersLogoWhite

0

Profit Pooling is when a manager chooses the most profitable activity in an industry and decides to engage in that activity for the purpose of generating large proportion of profit from the industry. Example: Education industry - there are many activities in this industry, some are more profitable than others, a strategic manager will consider external and internal elements (Weakness, strength, competitor, law, etc.) to engage in one of the activities for the purpose of earning Above Average Return (AAR). If he succeeds, then we can say there is profit Pool from education industry. -Jude Ehiokhihen E.

User Avatar

Wiki User

13y ago

What else can I help you with?