The Task of Driving-Forces Analysis Is to

question 43

Multiple Choice

The task of driving-forces analysis is to

• A) develop a comprehensive list of all the potential causes of changing industry conditions.
• B) predict which new driving forces will emerge next.
• C) determine which of the five competitive forces is the biggest driver of industry change.
• D) identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces.
• E) learn what the industry key success factors are and how they might change in the future.

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Definitions:

Interest Rate Parity

A theory stating that the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.

Forward Exchange Rate

An agreed exchange rate for a currency transaction that will occur at a future date.

Spot Exchange Rate

The current price for exchanging one currency for another, available for immediate delivery.

Interest Rate Parity

An economic theory that suggests the difference in interest rates between two countries will be equal to the difference in exchange rates between their currencies.