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Questions and Answers
What is the purpose of Porter's Five Forces Framework?
What is the purpose of Porter's Five Forces Framework?
- To identify the core competencies of a business
- To assess the macroenvironment of a business
- To determine the profitability of a business
- To analyze the operating environment of a business (correct)
Which term is used to describe an industry in which available profits for all firms are driven to normal profit levels?
Which term is used to describe an industry in which available profits for all firms are driven to normal profit levels?
- Pure competition (correct)
- Monopolistic competition
- Oligopoly
- Monopoly
What does the term 'microenvironment' refer to in the context of Porter's Five Forces Framework?
What does the term 'microenvironment' refer to in the context of Porter's Five Forces Framework?
- Forces that determine the competitive intensity of an industry
- General forces affecting the external business environment
- Forces that influence the overall industry attractiveness
- Forces close to a company that affect its ability to serve its customers (correct)
What is the significance of a change in any of the five forces in Porter's framework?
What is the significance of a change in any of the five forces in Porter's framework?
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In what way can firms achieve profitability above the industry average according to Porter's framework?
In what way can firms achieve profitability above the industry average according to Porter's framework?
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industry visits questions.
industry visits questions.
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