STM Quiz 2 Sp25

Trade restrictions and tariffs are a political factor that can influence a company's macro-environment.

Interest rates directly affect the purchasing power of consumers.

Changing values and beliefs are an example of a sociocultural force in the macro-environment.

Artificial intelligence is a technological factor closely associated with digital transformation.

Resource depletion is an example of an environmental factor affecting companies.

Intellectual property rights are a legal condition that affects a company's intellectual property protection.

In the Five Forces Framework, the threat of companies entering the industry is called competition from potential new entrants.

Rivalry among competing sellers in an industry is likely to be higher when switching costs are low.

Existing companies might defend against new entrants by increasing advertising and discounts.

Strong brand loyalty is a barrier to entry that discourages new companies from entering an industry.