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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