Driving Forces Analysis

question 67

Multiple Choice

Driving forces analysis

• A)involves identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes a company may need to make to prepare for the impact of the driving forces.
• B)identifies which strategic group is the most powerful.
• C)helps managers identify which industry member is likely to become (or remain)the industry leader and why.
• D)helps managers identify which key success factors are most likely to help their company gain a competitive advantage.
• E)helps managers identify which of the five competitive forces will be the strongest driver of industry change.

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Definitions:

LIFO Method

An inventory valuation method that assumes the last items added to inventory are the first ones to be sold (Last In, First Out).

Periodic Inventory System

An inventory valuation method where the ending inventory and cost of goods sold are determined at the end of the accounting period.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific category, supplementing the general ledger.

Consignment

An arrangement where goods are left with a third party to sell, but ownership remains with the supplier until the goods are sold.