Average Returns - ANSWERReturns equal to those an investor expects to earn from other investments with a similar amount of risk
Above-Average Returns - ANSWERReturns in excess of what an investor expects to earn from other investments with a similar amount of risk
Industry Environment - ANSWE...
Average Returns - ANSWERReturns equal to those an investor expects to earn from other
investments with a similar amount of risk
Above-Average Returns - ANSWERReturns in excess of what an investor expects to earn from other
investments with a similar amount of risk
Industry Environment - ANSWERThe set factors directly influencing a firm and it's competitive actions
and competitive responses
Industry Environment (Porter's 5 Forces) - ANSWER- Threat of New Entrants
- Power of Suppliers
- Power of Buyers
- Threat of Product Substitutes
- Intensity of Rivalry among Competitors
The I/O Model of Above-Average Returns - ANSWER1. External Environment
2. Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns
External Enviornment - ANSWER- General Environment
- 7 segments
, - Focus on the Future
- Industry Environment
- 5 forces
- Factors and conditions influencing a firms profitability within the industry
- Competitor Environment
- Future objectives, current strategy, assumptions, capabilities
- Focuses on predicting the dynamics of competitors actions, responses, and intentions
General Environment - ANSWERDimensions in the broader society that influence an industry and the
firms within it
General Environment (7 Segments) - ANSWER- Demographic
- Economic
- Political/Legal
- Sociocultural
- Technological
- Global
- Physical
Competitor Analysis - ANSWER- Future Objectives
- Current Strategy
- Assumptions
- Capabilities
- Response
- What will our competitors do in the future?
- Where do we hold an advantage over our competitors
- How will this change our relationship with our competitors
The Resource-Based Model of Above-Average Returns - ANSWER- Resources
- Capability
- Core Competence
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