1. Regulations have been imposed on FitzQ plcs industry to improve sustainability among industry participants. FitzQ plcs response to the regulations demonstrates the Porter hypothesis.

How should FitzQ plcs response to regulation be classified ?

A. Innovation

B. Full compliance

C. Mere compliance

D. Non-response

2. Glassen plc is considering entry into a new product market. The companys Marketing Director has requested information on each of the following aspects of the potential new product market

(1) The extent to which competitions are balance

(2) Market growth rates

(3) Fixed costs, exit barriers and operational efficiency

(4) The management structure of competitors

According to Porters Five Forces theory, which of the above aspects are relevance in determining the level of competitive rivalry in the potential new product market ?

A. (1), (2) and (4) only

B. (1), (2) and (3) only

C. (2), (3) and (4) only

D. (1), (3) and (4) only.