18 Questions
What is the main focus of a PESTEL analysis in analyzing a company's macro-environment?
Sociocultural forces
In the Five Forces Framework, which force deals with the competition that can arise from producers of substitute products?
Competition from producers of substitute products
Which step is involved in using the Five-forces Model of Competition?
Evaluating competitive pressures for each force
What does the Five Forces Model aim to determine in terms of industry profitability?
Overall industry attractiveness
Which component is NOT a part of the Five Forces Framework?
Economic conditions
What concept involves identifying key elements that determine success in a particular industry?
Key success factors
What is the main focus of driving forces analysis?
Analyzing the forces that make industries more or less attractive
Which factor is NOT typically considered a driving force of industry change?
Increasing customer satisfaction
How does technological change influence industry dynamics?
It leads to reductions in uncertainty and business risk
What is a key consideration when assessing the impact of driving forces on an industry?
Whether competition is becoming more intense
Why is the diffusion of technical know-how across firms and countries important in industry change?
It enhances cost efficiencies in the industry
'Emerging new Internet capabilities and applications' is an example of a driving force that may lead to:
Increased globalization
What is a key consideration when selecting variables for creating group maps?
Pick variables that highlight significant differences among rival approaches
In creating group maps, what does sizing group circles based on total sales help represent?
Relative sizes of each strategic group
What is a key benefit of generating maps using different pairs of variables?
It illustrates diverse competitive positions within the industry's structure
Why is it important to avoid selecting variables that are highly correlated for group map creation?
Correlated variables can distort the differentiation among rival approaches
When selecting variables for group maps, what type of differences should they reflect?
Significant differences among rival approaches
What do group circles proportional to combined sales in a group map help illustrate?
Relative sizes of each strategic group
This quiz covers evaluating a company's external environment from analyzing the macro-environment using PESTEL analysis to assessing the industry and competitive environment. It focuses on political, economic, sociocultural, technological, environmental, and legal factors influencing a company's strategic decisions.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
