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Questions and Answers
What is the primary purpose of Porter's 5 Forces analytical framework?
Which of the following is a factor in the PEST analysis?
What is the primary characteristic of the Introduction stage of the Product Life Cycle?
Which quadrant of the ADL Matrix is characterized by high market attractiveness and high business strength?
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According to Porter's 5 Forces, what is a factor that affects the Threat of New Entrants?
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What is the primary purpose of the PEST analysis?
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What is the primary characteristic of the Maturity stage of the Product Life Cycle?
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Which of the following is NOT a factor in the PEST analysis?
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Study Notes
Business Competitiveness Management
Porter's 5 Forces
- Analytical framework to assess the competitiveness of a business
- 5 forces that shape the industry:
- Threat of New Entrants: Barrier to entry, economies of scale, and government policies
- Bargaining Power of Suppliers: Dependence on suppliers, switching costs, and supplier concentration
- Bargaining Power of Buyers: Buyer concentration, buyer switching costs, and buyer information
- Threat of Substitute Products or Services: Substitute availability, switching costs, and buyer willingness
- Competitive Rivalry Among Existing Competitors: Number of competitors, industry growth rate, and fixed costs
PEST Analysis
- Framework to analyze the external environment of a business
- 4 factors that affect the business:
- Political: Government policies, regulations, and political stability
- Economic: Economic growth, inflation, and interest rates
- Social: Demographics, consumer behavior, and cultural trends
- Technological: Technological advancements, innovation, and research and development
Product Life Cycle
- Stages a product goes through from introduction to withdrawal
- 4 stages:
- Introduction: Product launch, high investment, and low sales
- Growth: Increasing sales, market expansion, and competition
- Maturity: Stabilized sales, market saturation, and intense competition
- Decline: Decreasing sales, market contraction, and product withdrawal
ADL Matrix
- Tool to analyze and prioritize products or services based on their market attractiveness and business strength
- 4 quadrants:
- Stars: High market attractiveness, high business strength (invest and grow)
- Cash Cows: Low market attractiveness, high business strength (milk and maintain)
- Question Marks: High market attractiveness, low business strength (invest and analyze)
- Dogs: Low market attractiveness, low business strength (divest or eliminate)
Management Function according to H. Fayol
- 5 primary functions of management:
- Planning: Setting goals, objectives, and strategies
- Organizing: Allocating resources, assigning tasks, and structuring the organization
- Commanding: Directing, motivating, and influencing employees
- Coordinating: Integrating and aligning activities and resources
- Controlling: Monitoring, evaluating, and correcting performance
Business Competitiveness Management
Porter's 5 Forces
- Analyze competitiveness of a business using 5 forces that shape the industry
- Threat of New Entrants: barrier to entry, economies of scale, and government policies affect new entrants
- Bargaining Power of Suppliers: dependence on suppliers, switching costs, and supplier concentration impact supplier power
- Bargaining Power of Buyers: buyer concentration, buyer switching costs, and buyer information influence buyer power
- Threat of Substitute Products or Services: substitute availability, switching costs, and buyer willingness to substitutes affect competitors
- Competitive Rivalry Among Existing Competitors: number of competitors, industry growth rate, and fixed costs impact competition
PEST Analysis
- Analyze external environment of a business using 4 factors
- Political: government policies, regulations, and political stability affect business
- Economic: economic growth, inflation, and interest rates impact business
- Social: demographics, consumer behavior, and cultural trends influence business
- Technological: technological advancements, innovation, and research and development affect business
Product Life Cycle
- Product goes through 4 stages from introduction to withdrawal
- Introduction: product launch, high investment, and low sales
- Growth: increasing sales, market expansion, and competition
- Maturity: stabilized sales, market saturation, and intense competition
- Decline: decreasing sales, market contraction, and product withdrawal
ADL Matrix
- Analyze and prioritize products or services based on market attractiveness and business strength
- Stars: high market attractiveness, high business strength (invest and grow)
- Cash Cows: low market attractiveness, high business strength (milk and maintain)
- Question Marks: high market attractiveness, low business strength (invest and analyze)
- Dogs: low market attractiveness, low business strength (divest or eliminate)
Management Function according to H.Fayol
- 5 primary functions of management
- Planning: setting goals, objectives, and strategies
- Organizing: allocating resources, assigning tasks, and structuring the organization
- Commanding: directing, motivating, and influencing employees
- Coordinating: integrating and aligning activities and resources
- Controlling: monitoring, evaluating, and correcting performance
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Description
Assess the competitiveness of a business with Porter's 5 Forces analytical framework, including threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and competitive rivalry.
