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Macro Environmental Analysis MGMT 5355 Dr. W. Scott Sherman

Four Assumptions of the I/O Model. 1.The external environment is assumed to possess pressures and constraints that determine the strategies that would result in above-average returns2.Most firms competing within a particular or within a certain segment of it are assumed to control similar strateg

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Macro Environmental Analysis MGMT 5355 Dr. W. Scott Sherman

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    1. Macro Environmental Analysis MGMT 5355 Dr. W. Scott Sherman

    2. Four Assumptions of the I/O Model 1. The external environment is assumed to possess pressures and constraints that determine the strategies that would result in above-average returns 2. Most firms competing within a particular or within a certain segment of it are assumed to control similar strategically relevant resources and to pursue similar strategies in light of those resources

    3. Four Assumptions of the I/O Model 3. Resources used to implement strategies are highly mobile across firms 4. Organizational decision makers are assumed to be rational and committed to acting in the firms best interests, as shown by their profit-maximizing behaviors

    4. The External Environment

    5. A continuous process which includes

    6. The Search for Big Deltas

    7. The Macro Environment

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