WPC 480 Comprehensive Final Test || With 100% Correct Solutions (Rated A+)

WPC 480 Comprehensive Final Test || With 100% Correct Solutions (Rated A+) WPC 480 Comprehensive Final Test || With 100% Correct Solutions (Rated A+) What is the primary value to a strategic analyst of doing a PESTEL analysis? - ANSWER - Identifies external conditions that can have an effect on competitiveness. What is the most important information a strategic analyst can obtain by doing an industry structure analysis? - ANSWER - Who gets the profits produced by industry members. The patent on a new technology has just expired. If all members of an industry adopt the newly available technology, it will allow them to reduce production costs by 50% by using more common input materials and fewer workers to run the production line. Which of the following forces is LEAST likely to be affected if all the industry member's adopt the new production technology? - ANSWER - Rivalry among competitors High exit barriers are likely to lower the profitability of an industry on average. - ANSWER - True Network effects (also known as network externalities) are when a product becomes more valuable when more people purchase and/or use that product. For example, the more people that use a particular social media platform, the more valuable the platform becomes as more people's friends, advertisers, and celebrities want to be on it because it connects them to more people. If an industry makes a product with network effects, is it most likely to DECREASE buyer power? - ANSWER - True If there is high rivalry/competition among the members of an industry it generally does not improve industry profitability, EXCEPT it can have a positive effect on profitability by reducing which of the following? - ANSWER - Threat of entrants Which of the following requirement makes it hardest to enter an industry? - ANSWER - A new international brand is required. Buyer power and supplier power are mostly set by the options available to the suppliers, buyers, and industry members when contracting with each other. - ANSWER - True A firm in an industry with poor industry structure should always be trying to move to an industry with a better industry structure. - ANSWER - True Resources - ANSWER - Anything a firm can use for strategically creating value. Core Competencies - ANSWER - Processes that can allow a company to create more value than competitors Capabilities