Driving Forces Analysis Helps Managers Identify Whether

question 101

Multiple Choice

Driving forces analysis helps managers identify whether

• A) the combined impacts of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead.
• B) it will become more or less important to aim the company's strategy at being the industry's low-cost producer.
• C) the driving forces will have a bigger impact on company profitability than competitive forces.
• D) the industry is likely to become more or less vertically integrated and why.
• E) competitive advantages are likely to grow or diminish in importance.

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Definitions:

Operations Management

The area of management concerned with designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods or services.

Contribution Margins

The amount by which a product's selling price exceeds its total variable costs, indicating the portion of sales that contributes to covering fixed costs.

Machine Hours

A measure of production time, representing the total hours a machine is operated within a specific period for manufacturing purposes.

Product Units

Individual items or quantities of a product that are produced or available for purchase.