When Evaluating Whether an Industry's Environment Presents a Company with an Above-Average

question 83

Multiple Choice

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity, it primarily involves

• A)determining the industry's outlook for future profitability.
• B)determining which firms in the industry have a competitive advantage and how they got their advantage.
• C)determining the overall strength of the five competitive forces.
• D)constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups.
• E)using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is.

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Definitions:

Electric Shock

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A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

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A penalty or sanction that is deemed appropriate and proportionate to the severity of the offense or misconduct committed.

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