According to the Five Competitive Forces Model, the number of competitors in an industry affects a firm's ability to charge a price above average cost and earn an economic profit, but this is not the only determinant. Match each situation with the competitive force it exemplifies. а. Threat of new entrants d. Threat of substitutes b. Bargaining power of suppliers Bargaining power of customers е. Rivalry between existing competitors с. 1. WalMart, the largest retailer in the world, has been able to "strongly influence" the wholesale prices, sizes, and packaging with the producers many of the items it sells. 2. The three major providers of cell phone service in this country are continually upping their advertising efforts to convince potential buyers of the superiority of their product. 3. There are only five companies in the world that produce rare earth minerals, used in electronic devices. At least one of these companies decides to start making these electronic devices also.

According to the Five Competitive Forces Model, the number of competitors in an industry affects a firm's ability to charge a price above average cost and earn an economic profit, but this is not the only determinant. Match each situation with the competitive force it exemplifies. а. Threat of new entrants d. Threat of substitutes b. Bargaining power of suppliers Bargaining power of customers е. Rivalry between existing competitors с. 1. WalMart, the largest retailer in the world, has been able to "strongly influence" the wholesale prices, sizes, and packaging with the producers many of the items it sells. 2. The three major providers of cell phone service in this country are continually upping their advertising efforts to convince potential buyers of the superiority of their product. 3. There are only five companies in the world that produce rare earth minerals, used in electronic devices. At least one of these companies decides to start making these electronic devices also.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Raymond is in Cape Town and his friend Zach is in Port Elizabeth. Raymond knows that Zach’s business is struggling after lockdown and has some money to invest. He also wants to help his friend. Raymond phones Zach on the 12th June 2020, offering to purchase an interest in Zach’s business. Zach is grateful and accepts Raymond’s telephonic offer from Cape Town. Q.1.6.1 Identify the theory of offer and acceptance that applies in this scenarioQ.1.6.2 Briefly explain how the above theory operates Q.1.6.3 Indicate the city in which the contract will have been deemed to have been concluded.
Indicate the trading strategy for Compulectrics, American Rubber and Gold Mines Expected Return Beta T-Bills 8% 0 Index Funds 15% 1 Compulectrics 17.4% 1.29 American Rubber 13.8% 0.68 Gold Mines 1.7% 0.86
The Gray Ferrari I t all got started when Robert L. Johnson had dinner at Mr. K’s Chinese restaurant with Michael Jordan of the Washington Wizards and David Falk, the leading sports agent. When the discussion turned to cars, Johnson mentioned his interest in getting a Ferrari. Both Falk and Jordan recommended their respective dealers but Johnson found the going tough. Only a select number of Ferraris are made annually, and the automaker limits how many are sold through U.S. dealers to about 1,000 units. In practice, anyone placing an order would have to wait over two years for delivery for a car that would cost $200,000 to $300,000 depending on the model. A New Jersey dealer had a Ferrari available, but, at $300,000, Johnson felt the price was too high. Michael Jordan’s dealer had a 360 Modena available for $160,000. Although he bought it, it was not exactly what he had wanted because the Modena is not a convertible. Franco Nuschese, the owner of Georgetown’s…
Ay 1 - mcq Company X and Company Y Ahrens Vitamins. Inc., have high market commonality, both geographically and in the market segments in which they compete. Company X, the number two firm in the industry, has undertaken a major strategic attack upon Company Y, the market leader. Which of the following statements is MOST likely to be true? A. Company Y will respond after a long delay as the nutrition supplement industry is a slow-cycle industry. B. As the market leader, Company Y has little to fear from an attack by Company X and will not expend organizational slack ana major response. C. Company Y will respond aggressively because of the high multimarket contact between both companies. D. Company Y will not respond aggressively since this is a strategic move and not a tactical action.
Q3(c). On the assumption that Mr. Francois is thinking about starting a branch in some foreign country, he will need advice on the types of strategies that could be adopted. How would you advise Mr. Francois and his family about the best approaches to entering a foreign market considering the type of business that he is engaged in? Provide justification for your advice. In addition, could you indicate to Mr. Francois and family about the types of experiences that they may encounter which may not be always positive.
When R promises B that R will deliver to B P100,000.00 in exchange of B’s 10,000 worth of paintings. What transaction was completed? A. Assignment B. Barter C. Sale D. Donation
You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo 2. What would you expect to happen to the price of “Atlanta United” athletic wear? Explain why.
1.Nestle Pakistan Limited is Knownexample of. A)Merchandise B)Whole seller C)Manufacturing D)Service 2. is used to differentiate between tangible assets and inventories. A)The nature of the company's activity B)The moment in the accounting period when the asset is acquired C)The acquisition cost of the asset D)The physical substance of the asset Explain with correct option
A leading manufacturer of video games is about to introduce four new games. The accompanying tablesummarizes price and cost data, Combined fixed costs equal $600,000. A marketing research study predicts thatfor each unit sold of Diablo, 2 units of Call of Duty: Modern Warfare, 3 units of Sekiro and 4 units of Starcraft IIwill be sold.GamesDiablo Call of Duty Sekiro Starcraft IISelling Price (in dollars) 55 48 33 22Variable cost/unit (in dollars) 22 17 12 11a) How many product mix units must be sold to break even?b) How does it translate into sales of individual games?
13. A high number of potential new entrants indicates ? a. an attractive market to enter b.A weakness c.less attractive market to enter d. a strength
Doggie Treats is a company in Gauteng that sells nutritious dog food and treats to dog pet owners. The owner, Mr. Smith, is deciding to conduct business on the online platform where customers could order dog food and treats for their pets online. Mr. Smith has requested your services as the online business consultant to advise further on this new way of conducting business. Question 1Selling physical products through an online e-commerce store can be lucrative, although it is also competitive.1.1 Explain to Mr. Smith how a brick and mortar business find customers compared to how ecommerce stores find customers. 1.2 Elaborate on any FIVE advantages of e-commerce retail Question 2 Explain in detail an appropriate online business revenue model suited for Doggie Treats. Include in your answer any FIVE business benefits this model provides to a business.
What is a supply chain? What is the purpose of supply chain management systems?2. What is the purpose of cost accounting ISs?3. What is the relationship between CAD and CAM systems?4. What are the concerns in cash management, and how do cash management ISs help finan- cial managers?5. What is time to market? How have ISs affected time to market?6. In brief, what is the purpose of customer rela- tionship management systems?7. WhatarethetypicalcomponentsofERPsystems?8. Although technologically the full linking of the SCM systems of suppliers and buyers is feasible, many buyers are reluctant to do so. Why?9. Why do the ERP installation and testing of systems require that experts be involved? Whydoes the implementation of so many ERP sys-tems face severe challenges or totally fail?10. What is EOQ? Which two problems do ISs thatcalculate EOQ help minimize?11. What is JIT? How do MRP and MRP II systems help achieve JIT?12. For the human resource managers of some orga- nizations the entire…