When calculating the weighted industry attractiveness scores, we find the more intensely competitive an industry is
A)the lower the attractiveness weighting for that industry.
B)the higher the attractiveness weighting for that industry.
C)suggests the resources are beyond the parent company's reach.
D)suggests the industry attractiveness measures have been incorrectly weighted.
E)the more likely the company's profit and revenues will be intensive.

Question

Quizplus · Accepted Answer

The more intensely competitive an industry is, the lower the attractiveness weighting for that industry. This is because a highly competitive industry can make it difficult for a company to earn high profits and revenues, which makes it less attractive as an investment opportunity.

When Calculating the Weighted Industry Attractiveness Scores, We Find the More