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Questions and Answers
Which of the Porter's 5 forces is primarily concerned with the ability of suppliers to influence the industry?
Which stage of the product life cycle is characterized by rapid sales growth and increasing competition?
What is the primary purpose of conducting a PEST analysis?
Which of the following is a characteristic of a 'Star' product in the ADL Matrix?
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According to H. Fayol, which of the following is NOT one of the primary functions of management?
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Which of the Porter's 5 forces is primarily concerned with the ability of buyers to influence the industry?
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What is the primary purpose of analyzing the product life cycle?
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Which of the following is a characteristic of a 'Dog' product in the ADL Matrix?
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Which of the following is a social factor that affects business in a PEST analysis?
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Which of the following is a characteristic of the 'Maturity' stage of the product life cycle?
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Study Notes
Business Competitiveness Management
Porter's 5 Forces
- Analyzing industry structure and competitiveness
- Five forces that determine industry attractiveness:
- Threat of New Entrants: Barriers to entry, economies of scale, and capital requirements
- Bargaining Power of Suppliers: Supplier concentration, switching costs, and supplier substitutes
- Bargaining Power of Buyers: Buyer concentration, buyer switching costs, and buyer information
- Threat of Substitute Products or Services: Substitutes availability, substitutes performance, and substitutes price
- Competitive Rivalry Among Existing Competitors: Industry growth rate, industry concentration, and product differentiation
PEST Analysis
- Analyzing external environment and its impact on business
- Four factors that affect business:
- Political: Government policies, laws, and regulations
- Economic: Economic growth, inflation, and interest rates
- Social: Demographics, lifestyle, and cultural trends
- Technological: Technological advancements, innovations, and disruptions
Product Life Cycle
- Analyzing product development and marketing strategies
- Four stages of product life cycle:
- Introduction: Product launch, high investment, and low sales
- Growth: Rapid sales growth, increasing competition, and profit improvement
- Maturity: Sales growth slows, high competition, and profit maintenance
- Decline: Sales decline, competition decreases, and profit reduction
ADL Matrix
- Analyzing product portfolio and market attractiveness
- Matrix with four quadrants:
- Stars: High market growth, high market share
- Cash Cows: Low market growth, high market share
- Question Marks: High market growth, low market share
- Dogs: Low market growth, low market share
Management Function according to H. Fayol
- Analyzing management functions and responsibilities
- Five primary functions:
- Planning: Setting goals, objectives, and strategies
- Organizing: Allocating resources, assigning tasks, and structuring organization
- Commanding: Directing and motivating employees
- Coordinating: Integrating and synchronizing activities
- Controlling: Monitoring and correcting performance
Business Competitiveness Management
Porter's 5 Forces
- Analyzing industry structure and competitiveness to determine industry attractiveness
- Threat of new entrants depends on barriers to entry, economies of scale, and capital requirements
- Bargaining power of suppliers is determined by supplier concentration, switching costs, and supplier substitutes
- Bargaining power of buyers is influenced by buyer concentration, buyer switching costs, and buyer information
- Threat of substitutes depends on substitutes availability, substitutes performance, and substitutes price
- Competitive rivalry among existing competitors is affected by industry growth rate, industry concentration, and product differentiation
PEST Analysis
- Analyzing external environment to identify opportunities and threats
- Political factors include government policies, laws, and regulations
- Economic factors include economic growth, inflation, and interest rates
- Social factors include demographics, lifestyle, and cultural trends
- Technological factors include technological advancements, innovations, and disruptions
Product Life Cycle
- Analyzing product development and marketing strategies
- Introduction stage is characterized by product launch, high investment, and low sales
- Growth stage is marked by rapid sales growth, increasing competition, and profit improvement
- Maturity stage is characterized by sales growth slowing, high competition, and profit maintenance
- Decline stage is marked by sales decline, competition decreasing, and profit reduction
ADL Matrix
- Analyzing product portfolio and market attractiveness
- Stars have high market growth and high market share
- Cash cows have low market growth and high market share
- Question marks have high market growth and low market share
- Dogs have low market growth and low market share
Management Function according to H. Fayol
- Planning involves setting goals, objectives, and strategies
- Organizing involves allocating resources, assigning tasks, and structuring organization
- Commanding involves directing and motivating employees
- Coordinating involves integrating and synchronizing activities
- Controlling involves monitoring and correcting performance
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Description
Understand the five forces that shape industry attractiveness and competitiveness, including the threat of new entrants, bargaining power of suppliers and buyers, and more.
