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.

ARTICLE: https://www.forbes.com/sites/nathanvardi/2014/05/08/how-the-outsiders-became-one-of-the-most-important-business-books-in-america/?sh=309204cf4aa0