Explain How the Concept of Strategic Group (And Its Two

question 9

Essay

Explain how the concept of strategic group (and its two sub-types) is used in a situational analysis as part of an environmental scanning activity to identify specific opportunities and threats that can either improve or harm the company's ability to sustain its competitive advantage.

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Definitions:

Asset Retirement Obligation

A legal obligation associated with the retirement of a tangible long-lived asset, where the entity is required to remove or dispose of the asset.

Contra-Liability Account

An account that decreases the balance of a related liability account, representing a credit balance in the liability section of the balance sheet.

Continuing Operations

The segments or activities of a business that are expected to continue for the foreseeable future, excluding discontinued operations.