Question

The assumptions of the I/O model and the resource-based model are contradictory. Therefore, organizational strategists must choose one or the other as the basis for developing a strategic plan.

a) True
b) False

Answer 1

The I/O model and the resource-based model are complementary approaches to strategic planning, not contradictory.

Step-by-step explanation:

The statement is false.

The I/O (Industrial-Organizational) model and the resource-based model are not contradictory, but rather complementary approaches to strategic planning.

The I/O model, also known as the external perspective, focuses on the external environment and industry factors, such as market conditions and competition. It suggests that organizations should identify attractive industries and position themselves to take advantage of external opportunities. The resource-based model, on the other hand, emphasizes the internal resources and capabilities of an organization, such as unique skills, knowledge, and assets. It suggests that organizations should build and leverage their unique resources to gain a competitive advantage.

An effective strategic plan may incorporate elements from both models, depending on the specific situation and industry. By considering both the external environment and internal resources, organizations can develop a well-rounded strategy that aligns with their goals and maximizes their chances for success.