Question

Arrange the sentences A, B, C and D to form a logical sequence between sentences 1 and 6.1.
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 behaviour of current competitors.
C. Not all industries have the same potential.
D. The state of competition in an industry depends on five basic competitive forces.
6. They differ fundamentally in their ultimate profit potential as the collective strength of the forces differ.

• A. CDBA
• B. DCAB
• C. BDAC
• D. ABDC

Hint:

Follow definitions or introductions (like “depends on”) with explanations or consequences, then examples or broader analysis.

Answer 1

The Correct Option is B

Step 1: Sentence 1 states competition is not luck. The logical follow-up is D, introducing the five forces model.
Step 2: C then notes that industries differ in potential.
Step 3: A elaborates on how the collective strength of the forces determines profitability.
Step 4: Finally, B gives a broader view that competition is structural, leading to sentence 6 which rephrases C.
Sequence: DCAB.