In Porter's Competitive Forces Framework, the Stronger the Five Forces

question 45

True/False

In Porter's competitive forces framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

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Definitions:

Direct Labor-hours

A measure of the total hours worked by employees who are directly involved in the production of goods or services.

Variable Maintenance Costs

Costs that vary in direct proportion to the usage of machinery or equipment, often related to repairs and upkeep.

Fabrication

The process of manufacturing complex items from raw materials or components, typically involving several stages of assembly.

Assembly Departments

Departments within a manufacturing facility where parts are assembled into final products.