Which of the Following Factors Should a Company Consider When

question 36

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:

Direct Labor Cost

The total expense incurred by a company for the wages of individuals directly involved in the production of goods or services.

Activity Level

A measure of the volume or quantity of production or operations within a specific period.

Direct Proportion

A relationship between two quantities where they increase or decrease at the same rate.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behaviors hold true.