Which of the Following Is Particularly Pertinent in Evaluating Whether

question 124

Multiple Choice

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

• A) The industry's growth potential, whether competition appears destined to become stronger or weaker, and whether the industry's overall profit prospects are above average, average, or below average
• B) An assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor
• C) Whether there are more than 5 key success factors and more than 5 barriers to entry
• D) Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group
• E) Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive shortcut used in decision making, where an individual relies on the similarity between the item in question and a category prototype.

Divergent Thinking

Expanding the number of possible problem solutions; creative thinking that diverges in different directions.

Fixation

(1) in thinking, the inability to see a problem from a new perspective; an obstacle to problemsolving. (2) in personality theory, according to Freud, a lingering focus of pleasure-seeking the developing human organism from about 2 weeks after fertilization through the secondmonth