From the PRACTICE
- activity, identify an organization that could benefit from the application of the I/O Model of Above-Average Returns (Figure 1.2 page 15 in the textbook). Follow the five steps to justify your answer.
- Do not use Apple or Walmart in this exercise,
- The first step is for the company to study the external environment- the external environment consist of the competitors and the government, this will enable the company to formulate strategies to gain a competitive advantage and comply with the government for effectiveness.
- The construction industry is undoubtedly an industry of high potential, buildings and other structures are being erected daily in the United States. Therefore the industry will have a high potential for above-average returns.
- The organization can implement a strategy that involves investing in and having strong stakeholder relations with various institutions and countries. This will secure them contracts that will earn them average returns.
- The assets and skills needed are resources, fundamentally, funds will enable the construction company to train their workers with unique training skills and instill knowledge of construction that allows them to be better hence gain average returns.
- The final step is the implementation of strengths, this further extends to the organizational culture of the organizations, by so doing the company will set a firm strategy that will earn then above average returns.
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