The Text Points Out That Modern Ideas of Strategy, Pioneered

question 69

Essay

The text points out that modern ideas of strategy, pioneered by Michael Porter, have turned IO economics "on its head." Although IO economics attempts to prevent any firm from gaining sustained competitive advantage, the very purpose of strategy is to gain a sustainable advantage. Is that good or bad?

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Definitions:

Recall Performance

The ability to remember and retrieve information that has been previously learned or experienced.

Baddeley's Model

A framework explaining human memory wherein it's divided into three main components: the central executive, the phonological loop, and the visuospatial sketchpad, with a later addition of the episodic buffer.

Working Memory

A cognitive system responsible for temporarily holding information available for processing, important for reasoning and the guidance of decision-making and behavior.

Phonological Loop

A component of working memory model that is responsible for the temporary storage and manipulation of verbal and auditory information.