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The fundamental nature of global competitiveness points to scarcity of capital and market volatility. Using the I/O Model and the strategic management process, explain what Ghanaian firms have to do to achieve Above-Average-Returns (AAR) under a regime of global hypercompetition in the 21st Century. In this case you have been hired as a strategist with a mandate to apply the I/O Model in place of the Resource Based Model (RBM) of AAR, justify the application of the I/O Model instead of the RBM. [Hints:
(i) Be sure to state and explain all the assumptions in the I/O model of AAR and apply
(ii) Have a diagrammatic representation of the model and adapt the model within the Ghanaian context.
(iii) Differentiate the I/O Model from the Resource Based Model of AAR and apply within a Ghanaian context.
(iv) Under the Resource Based Model you are required to explain and apply the following: Resources,Capabilities, Core Competencies and in addition state all assumptions under the Resource Based model of above average returns with relevant examples.]
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