There are two paths to increased profit. A firm can either attempt to increase revenue, which would be an increase in
[ Select ]
effectiveness
logistics
marketing
efficiency
or it could attempt to decrease costs, which is an increase in
[ Select ]
logistics
efficiency
effectiveness
marketing
.

Question

There are two paths to increased profit. A firm can either attempt to increase revenue, which would be an increase in 
[ Select ]
effectiveness
logistics
marketing
efficiency
 or it could attempt to decrease costs, which is an increase in 
[ Select ]
logistics
efficiency
effectiveness
marketing
 .

BlackTom AI · Accepted Answer

To understand the question, we need to identify which concepts correspond to the two ways a firm can boost profit: increasing revenue and decreasing costs.
Option set for the first blank includes: effectiveness, logistics, marketing, efficiency.
- If we pick effectiveness for the first blank: The statement becomes that increasing revenue comes from an increase in effectiveness. In business terms, this makes sense because boosting effectiveness means doing the right things well (aligning activities to achieve desired outcomes, such as meeting customer needs efficiently), which can raise sales and revenue. The other choices describe different domains: logistics is about getting products to customers, which can influence cost and service but is not a direct driver of revenue; marketing (as a separate option) is a specific function that can drive revenue, but the blank is asking for a general increase in a broad concept, and “effectiveness” captures the overall ability to achieve intended results—thus it fits cleanly as the general driver of revenue growth.
- If we were to choose logistics for the first blank, we would be implying that improving the way products are moved and stored directly increases revenue, which is an indirect and incomplete link; logistics primarily affects costs and service levels rather than revenue generation on its own.
- If we select marketing for the first blank, we would be tying revenue growth specifically to the marketing function’s activities, which is plausible but narrower than the broad concept of effectiveness and may not cover all revenue levers (sales processes, product-market fit, pricing, etc.).
- If we choose efficiency for the first blank, we would be suggesting that increasing efficiency increases revenue, which overlooks the point that efficiency relates more to how resources are used (cost side) rather than expanding top-line revenue directly.

The second blank’s options are: logistics, efficiency, effectiveness, marketing.
- The given correct pairing uses efficiency for the second blank: decreasing costs corresponds to an increase in efficiency. That aligns with a common managerial view: doing things more cost-effectively, reducing waste, and optimizing processes improves efficiency and lowers costs.
- If we substitute logistics for the second blank, you’d be implying cost reduction comes from improving logistics, which is only one facet of operations and may not capture the broader need to make processes more efficient across the organization.
- If you chose effectiveness for the second blank, that would misalign with cost reduction, since effectiveness is about achieving the right outcomes, not necessarily reducing inputs or costs.
- If marketing were chosen for the second blank, it would inaccurately imply that cost reductions arise from marketing activities, which is not typically how cost efficiency is described.

Putting it all together, the intended two-path framing is: increasing revenue through an increase in effectiveness (the broad capability to achieve desirable outcomes) and decreasing costs through an increase in efficiency (doing things with less waste and lower resource use). The selections “effectiveness” for the first blank and “efficiency” for the second blank reflect these interpretations and align with standard distinctions between top-line growth (effectiveness) and bottom-line cost reduction (efficiency).

There are two paths to increased profit. A firm can either attempt to increase revenue, which would be an increase in [ Select ] effectiveness logistics marketing efficiency or it could attempt to decrease costs, which is an increase in [ Select ] logistics efficiency effectiveness marketing .

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