Industry capacity is an important factor in evaluating an industry as _____ supply leads to ______in price and a _______ competitive environment.

Question 11 options:

extreme, major increase, highly

excess, reduction, highly

balanced, adjustments, low

low, reduction, moderate

Question 12 (1 point)
If all of Porter’s five forces are negative for an industry then _____

Question 12 options:

the profit potential is strong

the profit potential is weak

one would expect new entrants to exceed exits

the internal resources of the firm will be significant

Question 13 (1 point)
Activities closest to the start of the value chain often yield ____

Question 13 options:

the lowest added value tax

the best collaborative opportunities

the highest margins

the lowest margins

Question 14 (1 point)
A firm’s closest rivals are usually _____

Question 14 options:

located in a different industry

substitute firms

found in downstream industries

members of the same strategic group

Question 15 (1 point)
Understanding the factors that impact profit margins in an industry value chain helps firms evaluate _____

Question 15 options:

the tax implications of leasing

the need for an EFP system

a potential acquisition or new market entry

the profit potential of a new accounting system

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