By Nancy Furstinger illustrated by Donald Soat
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Extra resources for Nat’s Fish Shack - Decodable Book 12 Grade 1
Better before cheaper does not mean price competition is irrelevant; it means that when you have a choice to make, and when the data are unclear, go with better. Revenue before cost does not mean keeping cost under control does not matter; it means increasing revenue is more important. There are no other rules does not mean you can blindly follow the rules; it means you must apply all your creativity and insight to follow them in the face of all manner of other changes. It is a trap that has claimed some of the most famous or well-regarded researchers in the field.
By 2010, however, their paths had diverged significantly. All we needed to do was sort out what caused what and why. The effort just about broke us. Any single pair-wise comparison suggested compelling, or at least reasonable, explanations. For instance, PAM acquired five relatively small trucking companies between 1995 and 2003 as part of its growth strategy, increasing its revenues by about 15 percent as a direct consequence. In contrast, Werner did not do a single noteworthy deal over the entire 1986 to 2010 period, yet was able to grow much faster than PAM, and off a larger revenue base.
2 Getting beyond mere storytelling demands that we isolate the effects of a company’s behaviors on its performance from many other significant influences, such as industry structure, the pace and nature of technological change, unpredictable regulatory regimes, globalization, and so on—even dumb luck. These factors constitute the noise of the system in which all companies operate; we must find a way to filter it out if we want to hear the (sometimes faint) signal generated by the actions companies take that affect the outcomes of interest.