Which of the Following Factors Should a Company Consider When

question 51

Multiple Choice

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

• A) the industry's growth potential,whether competition appears destined to become stronger or weaker,how the industry's driving forces might affect overall industry profitability,the company's competitive position relative to rivals,and the company's proficiency in performing industry key success factors
• 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 five key success factors and more than five 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:

Logical Assumption

A premise that is considered reasonable and follows logically from given information.

Self-Serving Bias

The common tendency to attribute positive events to one's own character or actions but attribute negative events to external factors.

Defensive Attribution

A cognitive bias that involves attributing causes to behaviors or events in a way that defends oneself from feelings of vulnerability and mortality.

Stereotypes

Oversimplified generalizations about a group of people, often ignoring individual differences and based on assumptions rather than facts.