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The industrial organization (I/O) model of above-average returns:
a. puts emphasis on the external environment, which plays a role in determining a company's ability to achieve above-average returns.
b. concentrates on the unique resources and capabilities of a firm to direct its strategic management process.
c. is a new approach to strategic management that emphasizes technological advancement.
d. is critical to competing in the global economy and the information age because of its emphasis on organizational development.

Respuesta :

jepessoa

Answer:

The answer is A) Puts emphasis on the external environment, which plays a role in determining a company´s ability to achieve above-average returns.

Explanation:

The I/O Model of Above-Average Returns basically assumes that the industry in which a company decides to compete in has a much larger influence on performance (earnings and profit) than the choices the managers of this company make.

The basic assumptions of this organization model are:

  • The external environment imposes pressures and constraints that determine the strategies of the company and will result in above average returns.
  • It assumes competing companies control similar strategically relevant resources and pursue similar strategies.
  • Resources are highly mobile across companies, so that any differences that might develop between companies will be short-lived.
  • Decision-makers within the company are assumed to be rational and committed to acting in the company´s profit-maximizing behaviors.

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