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The CEO of Twin Spires, Inc., is emotionally and intellectually committed to using the resources of the firm to serve the needs of the natural gardening community by providing rare and native plants to individuals and nurseries around the United States. This commitment has carried the CEO through long periods of below average returns on investment. The perspective of the CEO of Twin Spires is consistent with the assumptions of the industrial organizational (I/O) model. True/False

User Omer Mor
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Final answer:

The CEO's commitment to serving the natural gardening community by providing rare and native plants is inconsistent with the I/O model, as it aligns more closely with the resource-based view which emphasizes internal resources and capabilities.

Step-by-step explanation:

The statement that the CEO of Twin Spires, Inc., is consistent with the assumptions of the industrial organizational (I/O) model is false. The I/O model of above-average returns is primarily focused on the external environment of the firm, including industrial properties and competitive forces. In contrast, the CEO's commitment described here resonates more with the resource-based view (RBV) which stresses the significance of the firm's distinctive resources and capabilities in achieving competitive advantage and above-average returns.

The CEO's dedication to serving the natural gardening community and the provision of rare and native plants is a strategic choice reflecting such unique resources and capabilities, rather than being driven by external industrial factors.

User Agus Puryanto
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