Any final choice you make will be at the expense of the profits/benefits that could have been generated by the excluded project
Mutual exclusivity is a statistical term describing at least two events that can not take place simultaneously.
It is used to describe a situation where the occurrence of one event is not influenced or caused by another. For example, the same person who owns a sum of money cannot simultaneously invest it in an investment fund and buy company shares. Another example: the results of tossing coin run may result in "heads" or "tails", but not both. These results are collectively exhaustive, that is to say that one of the two must necessarily occur in order to eliminate the remaining possibility. However, any mutually exclusive event is not exhaustive because, in the case where one draws a six-sided dice, two opposing sides are mutually exclusive, but other results are possible on the four other faces.
In the corporate world, the concept of mutual exclusivity is applied in capital budgeting. Firms often have to choose between a number of different projects in order to add value to the business. Some of these projects are mutually exclusive, like the sides of a coin, while others, like the faces of the dice, are independent. Here is a scenario:
A company has a budget of 50,000 euros to invest in new projects. Projects A and B cost 40,000 euros each and project C only costs 10,000: the company can combine A and C or B and C, but not A and B; A and B are mutually exclusive while C and A and C and B are independent.
Thus, faced with two mutually exclusive options, the company must consider the opportunity cost related to each of these projects because the final choice will be at the expense of the profits that could have generated the excluded project.
[Many people] think it means accept failure with dignity and move on. The better, more subtle interpretation is that failure is a manifestation of learning and exploration. If you aren’t experiencing failure, then you are making a far worse mistake: You are being driven by the desire to avoid it. And, for leaders especially, this strategy — trying to avoid failure by out-thinking it — dooms you to fail.
Differentiation between products is driven by the activities of the firm: product design, product performance, quality, branding, advertising, distribution, and so on. The more a product is differentiated along a dimension consumers care about, the higher price premium it can demand. So, Starbucks can charge $3.50 for a cappuccino, Hermès can charge $10,000 for a Birkin bag, and they can do so largely irrespective of input costs.
A company shouldn’t get addicted to being shiny, because shiny doesn’t last.
Any goal can be pursued in a variety of ways. It is the job of strategy to choose the most effective course of action for attaining objectives.