BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -The three parts of the external environment that affect a firm’s strategic actions are: general, industry, and competitor.
Detailed explanation-2: -Companies do not control the external factors that affect business operations and outcomes. These forces are known as the PEST factors, an acronym for political, economic, social, and technological factors. Political external factors affect the relationship between business and the government.
Detailed explanation-3: -A strategic group is a set of firms emphasizing similar strategic dimensions to use a similar strategy. The strategic groups can be useful for analyzing an industry’s competitive, and diagnosing competition, positioning, and the profitability of firms within an industry.
Detailed explanation-4: -the set of factors that directly influences a firm and its competitive actions and competitive responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competitors.