Driving Forces Analysis

question 138

Multiple Choice

Driving forces analysis:

• A) involves identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes a company may need to make to prepare for the impacts of the driving forces.
• B) identifies which strategic group is the most powerful.
• C) helps managers identify which industry member is likely to become (or remain)the industry leader and why.
• D) helps managers identify which key success factors are most likely to help their company gain a competitive advantage.
• E) helps managers identify which of the five competitive forces will be the strongest driver of industry change.

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Definitions:

Physical Capital

The stock of tangible goods like machinery, buildings, and infrastructure that are used in production.

Human Capital

Represents the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Financial Capital

The funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.

Labor Supply Curve

A visual chart that displays how the wage rate correlates with the amount of labor that workers are prepared to offer.