Opportunities correct answers Elements and conditions in a company's environment that allow it to formulate and implement strategies that enable it to become more profitable
Threats correct answers elements in the external environment that could endanger the integrity and profitability of the co...
MGT 499- Exam 1- Chapter 1, 2, 3 kang cmu cmich(100%
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Opportunities correct answers Elements and conditions in a company's environment that allow it to
formulate and implement strategies that enable it to become more profitable
Threats correct answers elements in the external environment that could endanger the integrity and
profitability of the company's business
Industry correct answers A group of companies offering products or services that are close to substitutes
for each other
Competitors correct answers Those who serve the same basic customer needs as other businesses
External Analysis correct answers Identifying the industry within which a company competes
Industry boundary correct answers Basic customer needs that are served by a market
Industry sector correct answers A group of closely related industries
Market segments correct answers Distinct groups of customers within a market that can be differentiated
from each other on the basis of their individual attributes and specific demands
Industry competitive analysis correct answers Begins by focusing upon the overall industry in which a
firm competes before market segments or sector-level issues are considered
Porter's 5 Forces Model correct answers 1. Threat of new entrants
2. Bargaining power of buyers
3. Bargaining power of suppliers
4. Risk of substitutes
5. Rivalry among competitors
, Potential competitors correct answers Companies that are not currently in an industry, but have the
capability to do so if they choose
Threat of new entrants correct answers 1. Economies of scale
2. Brand loyalty
3. Absolute cost advantages
4. customer switching costs
5. Government regulations
Economies of scale correct answers Reductions in unit costs attributed to a larger output
Brand Loyalty correct answers Preference of consumers for the products of established companies
Absolute cost advantage correct answers enjoyed by incumbents in an industry and that new entrants
cannot expect to match
switching costs correct answers costs that consumers must bear to switch from the products offered by
one established company to the products offered by a new entrant
Government regulations correct answers Height of barriers to entry is one of the most important
determinants of profit rates within an industry
Rivalry among competitors correct answers 1. Industry competitive structure
2. Industry demand
3. cost conditions
4. Exit Barriers
Industry Competitive Structure correct answers number and size distribution of companies in it,
something that strategic managers determine at the beginning of the industry analysis
Industry Demand correct answers growing demand tends to reduce rivalry, declining demand leads to
increase in rivalry
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