How Are Cumulative Learning and Experience Effects of a Company

question 37

Multiple Choice

How are cumulative learning and experience effects of a company most likely to affect Michael Porter's five forces?

• A) Threat of new entrants will be low.
• B) Bargaining power of suppliers will be high.
• C) Availability of complements will be low.
• D) Threat of substitute products and services will be high.

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Definitions:

Norms And Procedures

Established guidelines and methods of operation within an organization or society that dictate expected behavior and actions.

External Party

An individual or group outside of an organization that interacts or has a relationship with it.

Resistance To Change

Opposition or reluctance to adapt to new conditions, innovations, or transformations.

Hierarchical Structure

An organizational setup where each level controls the level below, creating a pyramid-shaped system of control and authority.