Final answer:
False, profit pools do not assure strategic leaders the ability to predict outcomes of their decisions definitively. They provide an overview of where profits can be made in a market, but not predictive certainty for individual strategies.
Step-by-step explanation:
False, profit pools do not allow strategic leaders to predict the outcomes of their decisions with certainty before taking efforts to implement them. While profit pools, which are the total profits earned in an entire market or industry, provide a high-level overview of where money is being made and where it is possible to earn profits, they do not guarantee predictive power over individual strategic decisions.
It is important to note that a firm's ability to compete effectively and deliver value in its selected areas within that pool plays a significant role in determining its success. As a firm establishes itself, the need for personal knowledge of managers decreases because of the availability of information concerning products, revenues, costs, and profits. This information about well-established companies allows outside investors like bondholders and shareholders to provide financial capital to the business without needing a personal relationship with its managers.