According to the Textbook, How Do Well-Managed Firms Respond to the Five

question 55

Multiple Choice

According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability?

• A) They switch industries if the forces are too compelling.
• B) They focus on one force intently and excel by overcoming that force.
• C) They overcome each of the forces.
• D) They ignore the forces.
• E) They try to position their firms in a way that avoids or diminishes the forces.

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Definitions:

Organizational Representation

The act of portraying or embodying the interests and values of an organization by its members.

Psychological Contract

Refers to the unwritten set of expectations between an employer and employee regarding mutual obligations.

Reciprocal Obligations

Mutual expectations or duties that are shared between individuals, groups, or organizations, often based on agreements or societal norms.

Explicit Agreement

A clearly defined and articulated agreement between parties, potentially including contractual elements, that details specific terms and conditions.