The Key Success Factors in an Industry

question 6

Multiple Choice

The key success factors in an industry

• A)are those competitive factors that most affect industry members' abilities to prosper in the marketplace-the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss.
• B)are determined by the industry's driving forces, which are essential to surviving and thriving in the industry.
• C)hinge on how many different strategic groups the industry has operating within the industry and their level of profitability and sustainable advantages.
• D)depend on how many rivals are trying to move from one strategic group to another without losing momentum.
• E)are a function of such considerations as how many firms are in the industry, how many have market shares above 5 percent, and whether the business models being used are similar or diverse.

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, attributed to the difference in the hourly wage rate paid and the standard rate expected.

Direct Labor Costs

These are the salaries and wages paid to employees directly involved in producing a company's goods or services.

Controllable Variance

Controllable variance refers to the difference between actual and expected figures that can be influenced by the actions of managers.

Overhead Costs

General expenses related to the operation of a business that are not directly attributed to creating a product or service.