To Forecast Industry Profitability Consistently and Accurately, Professional Analysts Have

question 39

Multiple Choice

To forecast industry profitability consistently and accurately, professional analysts have to

• A)look at the link between performance and industry structure, then to identify major trends and to examine the link between these trends and the forces of competition.
• B)look at the probability of new entries in the industry, to determine the major trends, and to forecast the probable overall industry profit.
• C)determine the five largest players in the industry and their relative bargaining power in regards to their buyers and customers, and to identify their strengths and weaknesses.
• D)develop a deep understanding of how the industry creates value now and in the future, whether they use the tools described in the chapter or not.

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Definitions:

Conflict Areas

Conflict areas are regions where there is a high incidence of conflict, often involving violence, warfare, or political instability.

Overmining

The excessive extraction of minerals or resources, leading to depletion or significant environmental degradation.

War-Torn Areas

are regions that have been severely affected by the consequences of armed conflict, impacting their social and economic fabric.

Conservation

The protection, preservation, management, or restoration of natural environments and the ecological communities that inhabit them to prevent depletion or degradation.