Porter's Five Forces Help a Multinational Manager Understand

question 2

Multiple Choice

Porter's five forces help a multinational manager understand

• A)The key success factors in an industry.
• B)How to assess the attractiveness of the industries a company is involved in.
• C)How to assess its unrelated diversification efforts.
• D)The trends in its industry.

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Definitions:

Base Amount

A reference value or level in financial calculations, often serving as a benchmark for comparing financial performance or changes.

Horizontal Analysis

A technique for evaluating a series of financial statement data over a period of time, to determine the increase (decrease) that has taken place, expressed as either an amount or a percentage.

Vertical Analysis

A method used in financial statement analysis where each line item is listed as a percentage of a base figure, enabling comparison across different periods or companies.

Horizontal Analysis

An analysis tool used in financial statement analysis to compare historical data, such as revenues and earnings, across different periods.