Explain the market force of "threat of entry," as detailed by Porter's Five Forces model, with an example
What will be an ideal response?
New entrants into an industry can decrease profitability for incumbent firms due to increased competition. For
example, multiple entrants in the extra-large (over 70 inches) liquid crystal display (LCD) television industry
caused prices (and profits) to drop. Companies can reduce the threat of incoming firms by erecting barriers to entry,
such as by establishing a strong brand or controlling access to distribution channels. For example, Samsung invests
heavily in its brand, so it will be perceived as an industry leader and attract buyers away from competitors.
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Answer the following statements true (T) or false (F)
1. An example of a self-fulfilling prophecy is a server who expects some poorly dressed customers to be stingy tippers, who therefore gives them poor service, and so gets the result he expected—a much lower tip than usual. 2. Investors who are more likely to buy a stock if they see something about it in the news or if it has a high one-day return provide an example of the recency effect. 3. The glass ceiling is a concept that applies to women, but not to minorities. 4. Your supervisor says the company needs you to stay late to meet an important deadline, but your family expects you to be present for your child's birthday party. You are experiencing role overload.
Which of the following terms is least consistent with the allocation of costs using a rational and systematic method?
a. depreciation b. amortization c. depletion d. upward revaluation
If the same sampling procedures are used in each country, the results should be comparable
Indicate whether the statement is true or false
Key words impart _______________
a. the central message b. questions to be asked c. background information d. organizational schemes