Strategic Management

Strategic Management

Answer the below questions with no less than 150 words each.

1-According to the I/O model, what should a firm do to earn above-average returns?

2-Why is it important for a firm to study and understand the external environment.

3-Why it is important for a firm to study and understand its internal organization?

4-How do awareness, motivation, and ability affect the firm’s competitive behavior?

5-Why are mergers and acquisition strategies popular in many firms competing in the global economy?



Answer preview

I/O is a field in economics that studies the structures and markets of a firm where they compete against each other. Based on the I/O model, a firm’s performance hinges upon the strategic decisions put in place. Therefore, understanding these concepts is vital for a firm to set the right strategic direction (Strategic Management and Strategic Competitiveness, (n.d.). Firms consider the external and internal environment to earn above-average returns during strategy formulation. For a firm to be highly competitive, it needs to identify the industry that offers the best opportunities. That is because the industry in which a firm operates significantly impacts its success more than the effectiveness of the firm and its core

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