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 text). Follow the five steps to justify your answer. Do not use Apple or Walmart in this exercise, nor should the organization you select be the same as another post.
From the first e-Activity, determine which of the two primary drivers of the competitive landscape is more influential. Explain your rationale. 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 text). Follow the five steps to justify your answer. Do not use Apple or Walmart in this exercise, nor should the organization you select be the same as another post.
1. Study the external environment, especially the industry environment.
The External Environment • The general environment • The industry environment • The competitor environment
2. Locate an industry with high potential for above average returns.
An Attractive Industry • An industry whose structural characteristics suggest above average returns
3. Identify the strategy called for by the attractive industry to earn above average returns.
Strategy Formulation • Selection of a strategy linked with above-average returns in a particular industry
4. Develop or acquire assets and skills needed to implement the strategy.
Assets and Skills • Assets and skills required to implement a chosen strategy
5. Use the firm's strengths (its developed or acquired assets and skills) to implement the strategy.
Strategy Implementation • Selection of strategic actions linked with effective implementation of the chosen strategy
Superior Returns • Earning of above-average return