The I/O model argues that:
A)internal resources and capabilities represent the foundation for the development of a value-creating strategy
B)firms should seek to maximise their returns by structuring their organisation in a manner consistent with the most efficient producers in any given industry
C)the conditions and characteristics of the external environment are the primary inputs to and determinants of strategy
D)internationalisation in certain industries will lead to globalisation

Question

Quizplus · Accepted Answer

The I/O (Industrial Organization) model argues that the external environment, such as industry structure, competition, and market trends, plays a critical role in shaping an organization's strategy. This approach suggests that firms should identify and exploit opportunities in their external environment to achieve sustained competitive advantage. In contrast, internal factors such as resources and capabilities are viewed as necessary but not sufficient for developing a successful strategy. Therefore, choice C is the most accurate description of the I/O model.

The I/O Model Argues That