The Task of Driving-Forces Analysis Is to

question 43

Multiple Choice

The task of driving-forces analysis is to

• A) develop a comprehensive list of all the potential causes of changing industry conditions.
• B) predict which new driving forces will emerge next.
• C) determine which of the five competitive forces is the biggest driver of industry change.
• D) identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces.
• E) learn what the industry key success factors are and how they might change in the future.

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Definitions:

Accounts Receivable Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services provided on credit.

Inventory Period

The inventory period is the amount of time it takes for a company to sell through its stock of goods. This is a critical component of inventory management and cash flow analysis.

Accounts Payable Turnover

A financial metric that measures how fast a business pays its suppliers, calculated by dividing the total purchases by the average accounts payable during a period.

Cash Cycle

It refers to the time period between the disbursement of cash and the collection of receivables in a company's operational cycle.