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48. Resource-based analysis is ineffective because it fails to define a business's competitive advantages and differentiate these from their competitors.
Multiple Choice49. The first part of an external analysis is toa.research potential substitutes. b.develop a competitive edge. c.identify potential customers. d.determine in which industry the new business will compete.50. The information from the North American Industry Classification System (NAICS) can be found from51. A(n) _____ is defined as those companies within a specified geographic radius that will be in direct competition for the same customers and sales as that of the new business.52. Identify a true statement about the North American Industry Classification System (NAICS).53. Gerald is planning on setting up a burger joint in his hometown. He finds out the NAICS (North American Industry Classification System) code for his business. From this information, he is able to understand that his immediate area contains virtually no competitors and has the potential to do very well. In the context of the critical steps involved in conducting an external analysis, Gerald is _____.a.starting to develop an understanding of his competitive advantageb.drawing a set of competitive mapsc.defining the industry in which he is competingd.examining and developing insights about substitutes54. Once a business is broadly defined, the next step is to
55. When defining potential customers, an owner must56. What are the two things that a new business owner should keep in mind when defining a customer base?57. According to the book, a clear understanding of the business's customers is important because ita.aids in keeping a strategic distance between itself and its competitors. b.helps in focusing on the core customers. c.provides a way to control expenses. d.all of these.