What Are Porter's Three Generic Strategies

question 85

Multiple Choice

What are Porter's three generic strategies?

• A) Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies
• B) Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry
• C) View of a firm as a series of business processes, each of which adds value to the product or service
• D) Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service

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Definitions:

Annual Installment

A fixed amount of money paid back to a lender once a year, typically used in the repayment of long-term loans.

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock certificate.

Bond Issue

The process of offering bonds for sale to investors as a way of borrowing money for long-term capital needs.

Interest Payable

The amount of interest expense that has been incurred but not yet paid by the company.