Driving-Forces Analysis Helps Managers Identify Whether

question 119

Multiple Choice

Driving-forces analysis helps managers identify whether

• A)the collective impact of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead.
• B)it will become more or less important to aim the company's strategy at being the industry's low-cost producer.
• C)the driving forces will have a bigger impact on company profitability than competitive forces.
• D)the industry is likely to become more or less vertically integrated and why.
• E)competitive advantages are likely to grow or diminish in importance.

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Definitions:

John Maynard Keynes

A British economist whose theories on the influences of macroeconomic factors on economic output and government interventions shaped modern economics.

Savings

The portion of disposable income not spent on current consumption but set aside for future use, often in a deposit account or as investments.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Aggregate Demand

The total demand for goods and services within an economy at a given overall price level and in a given time period.