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General environment and the industry environment

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Reference no: EM132909833

1 - According to the I/O model, what should a firm do to earn above-average returns?

2 - What does the resource-based model suggest a firm should do to earn above-average returns?

3 - Why is it important for a firm to study and understand the external environment?

4 - What are the differences between the general environment and the industry environment? Why are these differences important?

5 - How do the five forces of competition in an industry affect its profitability potential? Explain.

Reference no: EM132909833

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