Question

Which of the following is not an important factor for company managers to consider in drawing conclusions about whether the industry presents an attractive opportunity?

a) Whether powerful competitive forces are squeezing industry profitability to subpar levels and whether competition appears destined to grow stronger or weaker

b) The industry's growth potential

c) Whether industry profitability will be affected favorably or unfavorably by the prevailing driving forces

d) How many of the industry's key success factors do companies in the industry typically incorporate into their strategies

Answer 1

The number of key success factors that companies incorporate into their strategies is not a determining factor in the industry's potential.

Step-by-step explanation:

The important factor that is not necessary for company managers to consider in drawing conclusions about whether the industry presents an attractive opportunity is d) How many of the industry's key success factors do companies in the industry typically incorporate into their strategies.

While all the other factors listed in options a), b), and c) are crucial in assessing the attractiveness of an industry, the number of key success factors that companies incorporate into their strategies is not a determining factor in the industry's potential. Instead, factors such as competitive forces, growth potential, and prevailing driving forces play a more significant role in evaluating whether the industry presents an attractive opportunity.