1. What important external environmental and industry competitive factors would you analyze to help develop a competitive strategy for your business? Avoid presenting a lengthy "laundry list" of ideas. Identify and discuss what would be most important for your particular business.
2. What is the difference between a product line and the product mix?
3. Which of the following is a disadvantage of PLAMs?
a. Lenders face high levels of interest rate risk under PLAMs.
b. If an unanticipated rise in inflation occurs after the PLAM loan has been made, lenders can lose substantial value.
c. A PLAM is the mortgage payment increases closely following borrower salary increases.
d. The price level used to index PLAMs is measured on an ex post basis and historic prices may not be an accurate reflection of future price.