In Identifying an Industry's Key Success Factors, Strategists Should

question 120

Multiple Choice

In identifying an industry's key success factors, strategists should

• A)try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly.
• B)consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be competitively successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage.
• C)consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak.
• D)consider what it will take to overtake the company with the industry's overall best strategy.
• E)focus their attention on what it will take to capitalize on the impacts of the industry's driving forces.

Learn to calculate the capital gains yield on a stock.

Understand the calculation of geometric return for different periods.

Comprehend how to calculate the standard deviation of stock returns.

Grasp the concept of risk premium and how to calculate it.

---

Definitions:

Marginal Utility

The additional satisfaction or benefit that a consumer derives from consuming an additional unit of a good or service.

Equilibrium

A state where supply and demand balance, and as a result, prices become stable.

Unit Price

The cost assigned to a single unit of a product or service, facilitating price comparisons among similar products based on per unit costs.

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.