Key External Forces and the AQCD Test
These external forces focus on resources such as financial and human capital, as well the overall market conditions
Economic Forces
This is a tool that analyzes external factors and guides firms in formulating strategies.
Porter’s Five Forces
Management is the most ________ internal factor when doing an assessment.
Important
This is the single-best measure of a firm’s competitive position and attractiveness to investors.
Financial Condition
This is the first step in the IFE matrix.
Identify factors
These forces shape the way people live, work, produce, and consume.
Social, Cultural, Demographic, and Environmental (SCDE) Forces
These are educated assumptions about future trends and events.
Forecasts
The age group that comprises most of US consumers.
Millennials
Also referred to as Predictive Analytics, Machine Learning, and/or Data Mining
Business Analytics
In the IFE matrix, these are used to indicate how important a factor is to being successful in the industry.
Weights
These are the four attributes for external factors that are tested using AQCD test.
Actionable, Quantifiable, Competitive, and Divisional
This is the most powerful force out of the Five Forces.
Rivalry among Competing Firms
These are called the four basic functions of management.
Planning, Organizing, Motivating, Controlling
According to James Van Horne, finance and accounting activities can be categorized into these 3 decision areas.
Investment, Financing, and Dividend Decisions
This is the average total weighted score that the IFE matrix uses as a baseline for analyzing performance.
2.5
This is an AQCD attribute that discourages an external factor from being consolidated measure to allow for inferences on product or regional basis.
Divisional
This evaluates how well a firm is handling external factors.
The External Factor Evaluation Matrix (EFE)
The 4Ps of Marketing
Product, Price, Promotion, Place
The biggest threat to a company, according to a Wall Street Journal article.
Too many people in too many organizations having access to too much information
When a firm has a total weighted score ____ the average, this means that firm is weak internally and may need to think of new strategies.
Below
It is a systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goals.
Competitive Intelligence
Give a strategy to counter the high bargaining power of suppliers.
Start internally producing raw materials, Build strategic partnerships with suppliers
The examination and evaluation of consumer needs and wants.
Target Market Analysis
The formula for Current Ratio.
Current Assets + Current Liabilities
This is the formula used to get the weighted score for each factor
Weight x Rating = Weighted Score