Driving-forces analysis

a. has no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments.

b. practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead.

c. speculative value because it compels the firm to drive strategic intent and collective choice into operating practices.

d. perceived value and is associated with identifying the close and distant rivals within an operating industry.

e theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality.

The correct answer is letter "B": practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead.

Explanation:

The driving forces represent internal and external factors that determine the course of business. They can be spotted conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Identifying both internal and external factors allows companies to know what sources they have that can be exploited to increase efficiency and spots risks that the firm should mitigate to minimize future damages.

b. practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead.

Explanation:

Driving-forces analysis is one of the organisation analytical techniques that is used to carry out strategic analysis of an industry. In strategic analysis, driving forces push an industry in the direction of a change. These forces drive the industry from the present towards the future.

When carrying driving-force analysis, consideration is given to both macro and micro factors that influence an industry towards a change.

In the macro settings, there are numbers of forces like political, economic, technological and social that change the trajectory of an industry. Micro setting contains forces within the industry that directly impact the companies in that particular industry. Examples of such forces include customers, competitors, etc. After all of these forces have analysed, the industry will be able to know where it stands, where the whole industry is heading and how it can take opportunity to create this future.

So, driving-forces analysis offers practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead.