WPC480 MIDTERM #1 EXAM QUESTIONS WITH 100% CORRECT ANSWERS.

WPC480 MIDTERM #1 EXAM QUESTIONS WITH 100% CORRECT ANSWERS. You are evaluating a short business memo from a stock analyst about whether to buy, hold, or sell the stock of the Kamino Sunscreen Company. Which of the following characteristics of the memo is the most important for it to seem useful for you and others in making a decision about the stock? - answerThe analyst puts their conclusion in the first sentence. What is the main reason to do an industry analysis? - answerIdentify all firms that can take profits generated by the firm. What is the second, critical step in doing an industry analysis? (Note: you may have to iterate on this step as your analysis leads you to refine this step and you do the analysis again). - answerIdentify relevant competitors that define your industry or industry group. What is the first, critical step in doing an industry analysis? - answerSet a goal or specific question to answer from doing the industry analysis. For each of the dimensions of industry analysis, match the situation that will generally improve the industry structure for firms inside the industry. 1. Rivalry between competitors 2. Supplier and buyer power 3. Threats of entrants 4. Substitutes 5. Complements - answer1. Concentration in the industry is high 2. Industry firms have more options available than suppliers and buyers 3. Time necessary to learn how to use industry's technology 4. Relative performance price/output is lower than industry offerings 5. Many firms offer complements that are very similar When not all competitors within an industry are substantive competitors, an analyst should split the industry into groups of close competitors and then analyze the industry groups separately. - answerTrue In the PESTEL framework, the first "E" stands for "economic" and refers to the macro-economic conditions of nations or across nations. - answerTrue What is the primary reason that a strategic analyst does a PESTEL analysis even though the analyst is only focused on understanding the possible competitive advantage of a single firm? - answerSpecifically identify how very big forces in the world affect a firm's performance. Ackbar, Inc. has had 40% growth in accounting