When Evaluating Whether an Industry's Environment Presents a Company with an Above-Average

question 8

Multiple Choice

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity, it primarily involves

• A) determining the industry outlook for future profitability.
• B) determining which firms in the industry have a competitive advantage and how they got their advantage.
• C) determining the overall strength of the five competitive forces.
• D) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups.
• E) using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is.

---

Definitions:

Necessary Evil

Something undesirable but considered unavoidable or essential to achieve a desired outcome or to prevent a worse scenario.

Indian Removal

The 19th-century policy of the United States government aimed at relocating Native American tribes from their ancestral lands in the eastern U.S. to territories west of the Mississippi River.

State Of Georgia

A U.S. state located in the southeastern region, known for its historical significance, diverse landscapes, and economic contributions.

Department Of War

Historically, a government department charged with the administration of the military forces and the conduct of war, now largely replaced by more specifically named departments such as the Department of Defense in the United States.