When a company is in its planning stage, it must analyze the existing market to plan its path to success. According to Porter, there are five forces that shape the industry a business operates within. Which of the following is least likely to be considered one of these five forces?
A) Mission and Vision
B) New entrants
C) Power of customers
D) Threat of substitutes

Question

Quizplus · Accepted Answer

This question requires understanding of the Porter's Five Forces. Choice A is the correct choice since it is the only choice listed that is not one of the Five Forces. In fact, it is a component of the strategic planning process. The other three choices are representative of Porter's Five Forces.

When a Company Is in Its Planning Stage, It Must