Which of the Following Statements About Declining Industries Is True

question 6

Multiple Choice

Which of the following statements about declining industries is true?

• A) Not all segments of an industry typically decline at the same rate.
• B) A declining industry should ideally use the leadership strategy when it does not have any strengths and the competition is low.
• C) A divestment strategy is when a company in a declining industry tries to improve sales by improving product quality.
• D) The greater the exit barriers of a declining industry, the lower the intensity of competition.
• E) The intensity of competition is lower in declining industries that sell commodity-like products.

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Definitions:

Communication Problems

Issues that occur during the exchange of information between individuals, leading to misunderstandings, conflicts, or inefficiency.

Upward Communication

The transmission of messages from lower to higher levels in an organization.

Bad News

Information that is unwelcome, distressing, or unfavorable, typically causing concern or disappointment.

Formal Communication Channel

A structured path of communication within an organization that follows official lines of authority.