To determine: Why firm effects are important than industry effects.
Introduction:
Strategic management refers to formulating and implementing the way to achieve the goals by considering available resource and the internal and external environment. It will be framed by the top management on behalf of an organization.
Explanation of Solution
Determine why firm effects are important than industry effects:
Firm effects are important than industry effects signifies that the way the firm run is more important than the failure or success of the industry. If the oil company that made an enormous profit will go bankrupt if it poorly runs. The construction company that is affected by the recession will turn a profit if it runs well.
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