What Is Porter's Five Forces Model

question 133

Multiple Choice

What is Porter's Five Forces Model?

• 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:

College Graduates

Individuals who have completed a college-level education, earning an associate degree, bachelor's degree, or higher.

Risk Neutral

Condition of being indifferent between a certain income and an uncertain income with the same expected value.

Business Success

The achievement of financial and operational goals within a business, often measured by profitability, market share, or other performance indicators.

Expected Net Revenue

Expected net revenue is the anticipated profit calculated by subtracting expected costs from expected total revenue.