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Question
John Petersen is thinking about starting a firm in the specialty chemical industry. In the industry analysis John has been conducting, one thing he has noticed is that the specialty chemical industry is characterized by the following factors: high supplier concentration, high switching costs for buyers when they switch from one supplier to another, and no attractive substitutes for the products that most of the suppliers provide. These factors concern John because they tell him that the profitability of the specialty chemical industry is suppressed by the:
A) threat of substitutes
B) bargaining power of buyers
C) rivalry among existing firms
D) bargaining power of suppliers
E) threat of new entrants
Answer
This answer is hidden. It contains 1 characters.
Related questions
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In a business format franchise, the franchisor provides a formula for doing business to the franchisee along with training, advertising, and other forms of assistance.
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B) the franchise agreement and the buy agreement
C) the buy agreement and the membership agreement
D) the procurement agreement and the statutory agreement
E) the purchase agreement and the franchise agreement
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A) cost of the franchise
B) duration and nature of the commitment
C) restrictions on creativity
D) availability of financing
E) potential for failure
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A) a proven product or service within an established system
B) franchisor ongoing support
C) availability of financing
D) potential for business growth
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According to the textbook, the main disadvantage of buying a franchise is:
A) franchise organizations typically grow slower than non-franchise organizations in the same industry
B) franchisors typically provide poor levels of support
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According to the textbook, which of the following is not a cost that is typically associated with buying a franchise?
A) intellectual capital fees
B) capital requirements
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A master franchisee, in addition to having the right to open and operate a specific number of locations in a particular area, also has the right to:
A) stop making royalty payments if its sales decline
B) sell products made by companies other than the franchisor
C) offer and sell the franchise to other people in its area
D) use its own operating manuals to run its franchise outlets
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A) individual franchise agreement
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C) pinpoint franchise agreement
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B) a one-time franchise fee
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A) Licensing
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C) Contracting
D) Subcontracting
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C) notice-line
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Nike's familiar phrase "Just do it" is an example of a(n):
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B) tagline
C) notice-line
D) catchline
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A) emblem
B) logo
C) symbol
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What is an elevator speech? How did it get its name?
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