Michael Porter's Five Forces Analysis Is an Important Tool

question 46

Multiple Choice

Michael Porter's five forces analysis is an important tool:

• A) that considers a firm's strengths and weaknesses along with the opportunities and threats that exist in the firm's environment.
• B) for executives to analyze strategic groups in order to understand gaps in the industry that represent untapped opportunities.
• C) for analyzing how much profit potential exists in an industry.
• D) for evaluating profit potential of an organization's various business units or product lines.
• E) for organizing factors within the general environment and identifying how these factors influence industries and the firms within them.

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Definitions:

Triarchic Theory

A theory of intelligence proposing that human intelligence comprises analytical, creative, and practical components.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that individuals have different kinds of intelligences, such as linguistic, mathematical, musical, and spatial.

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, and overcome challenges.

Thurstone

Refers to L.L. Thurstone, a pioneering psychologist known for his contributions to psychometrics and the theory of intelligence.