In Analyzing Driving Forces, the Strategist's Role Is to

question 45

Multiple Choice

In analyzing driving forces, the strategist's role is to

• A) identify the driving forces and evaluate their impact on (1) demand for the industry's product, (2) the intensity of competition, and (3) industry profitability.
• B) predict future marketing innovations and how fast the industry is likely to globalize.
• C) evaluate what stage of the life cycle the industry is in and when it is likely to move to the next stage.
• D) determine who is likely to exit the industry and what changes can be expected in the industry's strategic group map.
• E) forecast fluctuations in product demand and how buyer needs will most likely change.

Explain the pricing strategies during different stages of the product life cycle.

Recognize the ethical considerations and the need for a product to meet safety, manufacturing, and profitability requirements in its design.

Understand strategies for reducing risks in new product development.

Comprehend the factors accelerating the pace of new product development.

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Definitions:

Financing Activities

Financing activities are transactions involving changes in the size and composition of the equity and borrowings of a company.

Statement of Cash Flows Worksheet

A detailed working paper used in the preparation of the statement of cash flows that reconciles beginning and ending cash balances by analyzing changes in all other accounts.

Reconciling Columns

The process of ensuring two sets of figures or account balances agree or match, often used in accounting.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.