MGT0006 Week 16

Which of the following is NOT one of Porter’s Five Forces?

• Threat of New Entrants

• Bargaining Power of Suppliers

• Technological Advancements

• Industry Rivalry

How does a high threat of substitutes impact an industry?

• Increases profitability

• Decreases customer loyalty

• Reduces competition among existing firms

• Increases barriers to entry

What strategy can businesses use to reduce the bargaining power of suppliers?

• Build strong customer relationships

• Increase switching costs for suppliers

• Develop alternative sources of supply

• Merge with competitors

Which of the following factors increases the threat of new entrants?

• High economies of scale

• Strong brand loyalty among customers

• Low capital investment requirements

• High government regulations

Which of the following is an internal stakeholder?

• Government regulators

• Customers

• Employees

• Suppliers

Stakeholder analysis helps organizations to:

• Ignore the concerns of non-profitable stakeholders

• Increase short-term profits only

• Understand and manage relationships with key stakeholders

• Eliminate the influence of external stakeholders

Who are considered stakeholders in a business?

• Only the company’s employees

• Anyone affected by the company’s actions

• Only customers and suppliers

• Only shareholders

Which of the following increases competition in an industry?

• Few competitors with strong brand loyalty

• High costs of switching for customers

• Many competitors offering similar products

• Strict government regulations

Which factor in PESTLE analysis deals with changes in laws and regulations?

• Economic

• Social

• Technological

• Political

Which of the following is an example of a technological factor in PESTLE analysis?

• Changes in tax policies

• New environmental laws

• Advances in artificial intelligence

• Changes in population demographics