External Analysis

What stage of industry evolution is characterized by slow growth and barriers to entry based on technological know-how?

• Decline stage

• Maturity stage

• Growth stage

• Embryonic stage

Mature Stage is the stage in which the market is saturated, demand is limited to replacement demand, and growth is slow.

• TRUE

• FALSE

In which stage of industry evolution does rivalry tend to be relatively low and demand approaches saturation levels?

• Embryonic stage

• Growth stage

• Maturity stage

• Decline stage

What stage of industry evolution leads to most industries becoming oligopolies?

• Embryonic stage

• Growth stage

• Maturity stage

• Decline stage

Strengths in a SWOT analysis refer to external factors that give a business an advantage over competitors.

• TRUE

• FALSE

A useful tool for analyzing the effects of industry evolution on competitive forces

• 1. Industry Life Cycle Model

• Industry Life Cycle Analysis Model

• 1. Industry Cycle Model

• Industry Cycle Analysis Model

Weaknesses in a SWOT analysis are internal factors within the organization’s control that may place a business at a disadvantage compared to others.

• TRUE

• FALSE

What are the financial weaknesses of a business typically related to?

• Employee turnover

• Lack of expertise

• Regulatory changes

• Technology limitations

Growth Industry is an industry where demand is expanding as first-time consumers enter the market.

• TRUE

• FALSE

Microenvironment refers to the set of conditions that exist in the economy as a whole, rather than in a particular sector or region.

• TRUE

• FALSE