User:Elizabeth Ullauri/ I O Model

ORGANIZATION MODELS An organization model is an structure that defines the business throught its own framework, including authorities, structure and communication. The model is conducted by mission and goals of a particular business.

Companies use Organisation structures or models in order to have Above Average returns or higher profit.

An above Average return is the result of the innovative strategies that companies use to have higher profits.

Example Nike´s biggest competitors world wide are United Armour Inc. (UA), VFC Corporation (VF), Lululemon Athletica Inc. (LULU), and Adidas AG (ADDYY). By the way Nike´s measuring returns is the return on invested capital which includes, retail store rollout, digital and e-commerce, and innovation process that their competitors dont have ( Phalguni,2014).

I/O MODEL Above Average returns .

An I/O Model is an Industrial Organisation Model which creates an external perspective. In other words, an IO MODEL is an outside force that shows dominate decissions on a firm strategic action. For example a firm can have a Joint Venture strategy to increase profitability in the industry. An IO Model has four important assumptions. 1. External Enviroments: External enviroments refers to pressure and contrains that determine the strategies that would be part on above- average returns.

2.Particular segment: Most firms compete in a particular segment, or use a similar strategy to compet. For example fast food chains as Mc donalds and Burguer King strategies

3. Resourcess used to implement strategies: In this assumption, an strategy that differenciates from other companies. for example E- commerce implementation

4. Decission Makers: CEO´s or assosiates are the ones who must take good decissions for the firm.

REFERENCES:

Lawrence B. Mohr, Explaining Organizational Behavior. The Limits and Possibilities of Theory and Research., Jossey-Bass Publishers, 1982

tarr 1999. Strategic Management. Retrieved from: http://www.albany.edu/faculty/es8949/bmgt481/index.html

Hitt et all. Strategic Management and Strategic competitiveness. Chapter 1.pg 14

Soni. Phalguni. 2014. Traditionally innovative: A must-know investor’s guide to NIKE http://marketrealist.com/2014/12/nike-brand-consistently-delivers-average-returns/