CIMA Exam CIMAPRA19-E02-1 Topic 1 Question 101 Discussion

Actual exam question for CIMA's CIMAPRA19-E02-1 exam

Question #: 101
Topic #: 1

Which ofthefollowingbest describes the purpose of Michael Porter's Five Forces model?

ATo examine the macro environment to identify any triggers for change.

BTo examine the internal environment to identify the strengths and weaknessness of the business which can be used to gain competitive advantage.

CTo indentify the profit potential from the industry to determine whether to enter or remain in the industry.

DTo analyse the stakeholders of the business and their power and interest in order tomanage them effectively.

Show Suggested Answer

Suggested Answer: A

by Daniela at Sep 17, 2024, 06:16 PM

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Leonard

1 months ago

Hmm, this is a tricky one. I'm gonna go with C, just because I can't imagine Porter coming up with a model that doesn't help you figure out if an industry is worth getting into.

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Grover

7 days ago

User 1: I think C makes sense, you want to know if it's worth being in that industry.

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B) To examine the internal environment to identify the strengths and weaknesses of the business which can be used to gain competitive advantage. Sounds like a good way to get an edge over the competition.

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Dong

2 months ago

D) To analyse the stakeholders of the business and their power and interest in order to manage them effectively. Gotta keep those stakeholders happy, you know!

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Burma

1 months ago

C) To identify the profit potential from the industry to determine whether to enter or remain in the industry.

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Micaela

1 months ago

B) To examine the internal environment to identify the strengths and weaknesses of the business which can be used to gain competitive advantage.

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Sueann

1 months ago

A) To examine the macro environment to identify any triggers for change.

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Valentine

2 months ago

This is a tough one, but I think C is the best answer. Porter's model is all about understanding the industry's profitability, which is crucial for any business decision.

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Judy

17 days ago

I see your point, but I still believe C is the most accurate. Knowing the profit potential can really impact strategic decisions.

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Novella

22 days ago

I think B might also be a good choice. Analyzing internal strengths and weaknesses can definitely help in gaining a competitive advantage.

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Cristina

28 days ago

I agree, C is the correct answer. Understanding the profit potential of the industry is key.

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Lavonda

2 months ago

C) To identify the profit potential from the industry to determine whether to enter or remain in the industry. Seems like the most accurate choice to me.

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Patrick

1 months ago

B) To examine the internal environment to identify the strengths and weaknesses of the business which can be used to gain competitive advantage.

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Alverta

1 months ago

A) To examine the macro environment to identify any triggers for change.

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Dorethea

3 months ago

I believe it's also about analyzing the competitive forces in the industry to gain competitive advantage.

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Cordelia

3 months ago

I agree with Carin. It helps in determining whether to enter or remain in the industry based on the profit potential.

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Carin

3 months ago

I think the purpose of Michael Porter's Five Forces model is to identify the profit potential from the industry.

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CIMA Exam CIMAPRA19-E02-1 Topic 1 Question 101 Discussion

Contribute your Thoughts:

Leonard

Grover

Gretchen

Dong

Burma

Micaela

Sueann

Valentine

Judy

Novella

Cristina

Lavonda

Patrick

Alverta

Dorethea

Cordelia

Carin