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Scenario A

Question 138

Multiple Choice

Scenario A. Connie's Collectibles is a small antique jewelry store that specializes in antique jewelry. In analyzing the environment, Connie has uncovered several interesting findings:
1. Connie has recently purchased more inventory than in the past. The customers from whom she buys are selling off more jewelry because their children are not interested in this type of jewelry and these customers would prefer to liquidate their jewelry to help them with their daily expenses since they no longer wear most of it.
2. Connie has recently discovered that her business is in a historical preservation district so as she considers remodeling the shop, she has found she must pay attention to the guidelines set forth in the governing laws.
3. Connie's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern jewelry so the customer base to which she sells is shrinking.
4. Connie has been told that she should investigate selling her inventory via the Internet but she does not own (or understand how to use) a computer.
5. In reading a survey of regional business, Connie discovered that there are no other antique jewelry stores within a 200 mile radius of hers.

-Findings 1 and 3 are both associated with the


A) competitive environment as described by Porter.
B) macroenvironmental economic trends.
C) macroenvironmental political trends.
D) amount of rivalry in Connie's competitive environment.
E) barriers to entry in Connie's competitive environment.

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