Analyzing Company's External Environment and Choosing a Strategy Quiz
18 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main focus of a PESTEL analysis in analyzing a company's macro-environment?

  • Legal and regulatory conditions
  • Sociocultural forces (correct)
  • Environmental factors
  • Technological factors
  • In the Five Forces Framework, which force deals with the competition that can arise from producers of substitute products?

  • Competition from potential new entrants
  • Competition from rival sellers
  • Supplier bargaining power
  • Competition from producers of substitute products (correct)
  • Which step is involved in using the Five-forces Model of Competition?

  • Evaluating competitive pressures for each force (correct)
  • Assessing key success factors
  • Determining strategic groups
  • Identifying driving forces
  • What does the Five Forces Model aim to determine in terms of industry profitability?

    <p>Overall industry attractiveness</p> Signup and view all the answers

    Which component is NOT a part of the Five Forces Framework?

    <p>Economic conditions</p> Signup and view all the answers

    What concept involves identifying key elements that determine success in a particular industry?

    <p>Key success factors</p> Signup and view all the answers

    What is the main focus of driving forces analysis?

    <p>Analyzing the forces that make industries more or less attractive</p> Signup and view all the answers

    Which factor is NOT typically considered a driving force of industry change?

    <p>Increasing customer satisfaction</p> Signup and view all the answers

    How does technological change influence industry dynamics?

    <p>It leads to reductions in uncertainty and business risk</p> Signup and view all the answers

    What is a key consideration when assessing the impact of driving forces on an industry?

    <p>Whether competition is becoming more intense</p> Signup and view all the answers

    Why is the diffusion of technical know-how across firms and countries important in industry change?

    <p>It enhances cost efficiencies in the industry</p> Signup and view all the answers

    'Emerging new Internet capabilities and applications' is an example of a driving force that may lead to:

    <p>Increased globalization</p> Signup and view all the answers

    What is a key consideration when selecting variables for creating group maps?

    <p>Pick variables that highlight significant differences among rival approaches</p> Signup and view all the answers

    In creating group maps, what does sizing group circles based on total sales help represent?

    <p>Relative sizes of each strategic group</p> Signup and view all the answers

    What is a key benefit of generating maps using different pairs of variables?

    <p>It illustrates diverse competitive positions within the industry's structure</p> Signup and view all the answers

    Why is it important to avoid selecting variables that are highly correlated for group map creation?

    <p>Correlated variables can distort the differentiation among rival approaches</p> Signup and view all the answers

    When selecting variables for group maps, what type of differences should they reflect?

    <p>Significant differences among rival approaches</p> Signup and view all the answers

    What do group circles proportional to combined sales in a group map help illustrate?

    <p>Relative sizes of each strategic group</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser