The more difficult it is to enter the task environment: (a) the more competitors an organization faces.(b) the harder it is to obtain customers.(c) the easier it is to keep prices high.(d) the less expensive it is to enter the industry.(e) the lower is the barrier to entry.

The correct choice of answers to these questions is C) The easier it is to keep the price high

This is because if industrial barriers become higher, it will be difficult for new entrants to enter the industry. So it can be concluded, with this new industry becomes difficult to enter the territory that is already controlled, this becomes an advantage for an organization to keep maintaining high prices.

Further explanation

In managing an organization, leaders, and management often pay less attention to the external conditions of the organization, and focus too much on internal conditions. As a result, the strategies adopted are less appropriate to environmental conditions, and instead fail the organization in achieving its goals. Also, the lack of insight possessed influences in responding to external conditions, which tend to be difficult to control, so that every leader and management must understand external factors that can affect the organization.

Porter's 5 Forces Method, this method serves to analyze the development of business strategies or the competitive environment. In this 5 Forces method, an industry is called unattractive if the combination of five forces has the potential to reduce the profitability of an organization. Conversely, the industry is called attractive if the combination shows promising profitability. Here is a description of the 5 Forces analysis method :

Competitive Rivalry analyzes the factors of competition between an organization and other organizations so that the organizational strategy will succeed if it can provide a competitive advantage compared to other organizations. Supplier Power analyzes the factors related to suppliers, which have different bargaining positions to the organization, such as the adequacy of supply from suppliers, the position and power of suppliers to control the price of goods supplied, etc. New Entrants are various factors that influence the entry of new entrants into an industry. Substitution is a condition where the competition of products produced by companies does not only come from companies that produce the same product. However, the competition for these products also comes from other companies that produce products that have similar functions to the products produced by the company. Consumer Power describes the level of consumer power in buying goods or services offered.

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Porter's Method 5 Forces ,

Details

Class: High School

Subject: Business

Keywords: External factors that determine opportunities and threats.

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