MBA 705 - Module 2 questions with complete solutions 2023

MBA 705 - Module 2 questions with complete solutions 2023industry a group of companies that produce competing products or services critical success factors (csf) elements of the strategy that promote (but do not guarantee) success within a given industry; often shared by rivals primary industry consists of a firm's most direct competitors secondary industry consists of a firm's less direct rivals Outside sources can help define an industry, but top managers must make their own determination. The old __ system and its successor (the __) can be used as a starting point. SIC; NAICS market share the proportion of industry sales attributed to a particular rival; aka the percentage of total market sales attributed to one competitor relative market share the firm's percentage of sales in an "industry" restricted to select competitors; useful when data is not readily available or a firm wishes to focus on only a subset of the industry industry lifecycle stages introduction, growth, shakeout, maturity, decline porter's five forces model centered around existing rivalries; looks at barriers to entry, bargaining power of buyers, threat of substitutes, and bargaining power of suppliers what do porter's five forces determine? collectively, an industry's potential for profitability. but forces do not guarantee that an individual firm will be/ not be profitable based on porter's five forces model, firms should... }seek to compete in industries with a high potential for profitability. It's easier to paddle with the current than against it. intense competition among incumbent firms can result in... price wars, advertising battles, new product introductions or modifications, and increased customer service or warranties intensity of rivalry is measured by __ factors eight concentration of competitors (intensity of rivalries factor #1) Industries with few firms tend to be less competitive, but those with many firms that are roughly equivalent in size and power tend to be more competitive, as each firm fights for dominance. high fixed or storage costs (intensity of rivalry factor #2) Firms with high fixed costs are most likely to cut prices when excess capacity exists because they must operate near capacity to be able to spread their overhead over more units of production.