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3 January, 13:35

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.

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  1. 3 January, 14:31
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    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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