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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Lavonda

13 days 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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Dorethea

21 days ago

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

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Cordelia

24 days 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

25 days 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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