Strategy

Strategy researchers recognize two different approaches to setting strategy.

I/O Model
Focuses on the industry and selecting an industry where a company can earn above average profits.
External foucs


Resource Based Model
Focuses on the resources and capabilities within a company.
Internal focus


Situation analysis provides method for looking at both internal and external issues.

SWOT analysis
Internal - Core capabilities and distinctive competence VRIN

• Strengths
• Weaknesses

External - Environmental issues

• Opportunities
• Threats

Step 1
Make lists for each of these categories
Step 2
Make a list of alternative actions

Activity