Question:
Arrange the sentences A, B, C, and D to form a logical sequence between sentences 1 and 6.
1. Intensity of competition in an industry is neither a matter of coincidence nor bad luck.
A. The collective strength of these forces determines the ultimate profit potential in the industry where profit potential is measured in terms of long run returns on invested capital.
B. Rather, competition in an industry is rooted in its underlying economic structure and goes well beyond the behavior of current competitors.
C. Not all industries have the same potential.
D. Beyond the behavior of current competitors, there are five basic competitive forces which determine the intensity of competition in an industry.
6. Different industries can sustain different levels of profitability depending upon these forces.
Arrange the sentences A, B, C, and D to form a logical sequence between sentences 1 and 6.
1. Intensity of competition in an industry is neither a matter of coincidence nor bad luck.
A. The collective strength of these forces determines the ultimate profit potential in the industry where profit potential is measured in terms of long run returns on invested capital.
B. Rather, competition in an industry is rooted in its underlying economic structure and goes well beyond the behavior of current competitors.
C. Not all industries have the same potential.
D. Beyond the behavior of current competitors, there are five basic competitive forces which determine the intensity of competition in an industry.
6. Different industries can sustain different levels of profitability depending upon these forces.
1. Intensity of competition in an industry is neither a matter of coincidence nor bad luck.
A. The collective strength of these forces determines the ultimate profit potential in the industry where profit potential is measured in terms of long run returns on invested capital.
B. Rather, competition in an industry is rooted in its underlying economic structure and goes well beyond the behavior of current competitors.
C. Not all industries have the same potential.
D. Beyond the behavior of current competitors, there are five basic competitive forces which determine the intensity of competition in an industry.
6. Different industries can sustain different levels of profitability depending upon these forces.
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Use keywords like "rather" and "these forces" to identify the logical progression from general statement to specific details in paragraph arrangement.
Updated On: Jul 24, 2025
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Solution and Explanation
Step 1: Sentence 7 introduces the idea that competition in an industry is not random. The next sentence should explain why or how competition arises.
Step 2: Sentence B, starting with "rather," directly refutes the idea of coincidence, stating that competition is rooted in the industry’s economic structure, making it a logical follow-up to sentence 7.
Step 3: Sentence D elaborates on B by specifying that competition depends on five basic competitive forces, providing a detailed explanation of the economic structure.
Step 4: Sentence A explains that these forces (from D) determine the industry’s profit potential, connecting the competitive forces to profitability.
Step 5: Sentence C states that not all industries have the same potential, setting up sentence 6, which concludes that different industries sustain different profitability levels due to these forces.
Step 6: The sequence BDAC flows logically: competition is not random (7), rooted in economic structure (B), defined by five forces (D), which determine profit potential (A), varying by industry (C), leading to different profitability levels (6).
Verification: Options like DABC place D before B, disrupting the explanation of economic structure, and ABCD starts with profit potential prematurely.
Step 2: Sentence B, starting with "rather," directly refutes the idea of coincidence, stating that competition is rooted in the industry’s economic structure, making it a logical follow-up to sentence 7.
Step 3: Sentence D elaborates on B by specifying that competition depends on five basic competitive forces, providing a detailed explanation of the economic structure.
Step 4: Sentence A explains that these forces (from D) determine the industry’s profit potential, connecting the competitive forces to profitability.
Step 5: Sentence C states that not all industries have the same potential, setting up sentence 6, which concludes that different industries sustain different profitability levels due to these forces.
Step 6: The sequence BDAC flows logically: competition is not random (7), rooted in economic structure (B), defined by five forces (D), which determine profit potential (A), varying by industry (C), leading to different profitability levels (6).
Verification: Options like DABC place D before B, disrupting the explanation of economic structure, and ABCD starts with profit potential prematurely.
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