Driving forces analysis:
A) has speculative value because it compels the firm to drive strategic intent and collective choice into operating practices.
B) has theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality.
C) has practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead.
D) has no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments.
E) All of these.

Question

Quizplus · Accepted Answer

Driving forces analysis has practical value as it helps firms to think strategically about the future changes in the industry and how to prepare for them. It allows firms to identify the key factors that affect their industry's profitability and competitiveness, and make informed strategic decisions accordingly. Speculative value (A) and theoretical value (B) are only part of the picture, while D is incorrect as it suggests that the analysis is useless after the fact. Therefore, C is the best answer.

Driving Forces Analysis