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

The internal organization comprises decision-makers and communication members whose goals do not align with the objectives of the firm. To analyze the strengths and weaknesses of an organization, a firm focuses on the internal factors that help it meet the needs of its target market. Strengths refer to a firm’s core competencies that give it an advantage in meeting the target market needs (Zaynullina, 2020). Any strategy of analyzing the company’s strengths should be customer-focused because it can only be meaningful if it assists the firm in meeting customers’ needs. On the contrary, weaknesses are things that limit a company from developing or implementing its strategies to meet the market needs. Therefore, understanding the internal organization leads to a more efficient and effective restructuring of the company’s organizational structure when there are changes in the business environment. It also leads to fewer conflicts and politics within the organization during decision-making and implementation.

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Strategic Management