from stratigic management book ninth edtion

Subject: Internal and External Resources. Chapter 4(The Business Environment and Strategy or Industry Organization Model) and Chapter 5 (Resource Led-Strategy or Resource Based View or Model). You will process the question from the perspective of: Professional accountant and strategist Situation: There is causality (cause-and-effect) between the analyses of both firm's environments. All the following should be taken into consideration to analysis cause and effect (strategic competitiveness, competitive advantage, discovering core competencies, capabilities, tangible and intangible resources). Questions: 1.1 Describe and explain the causality between the critical components of firm's internal and external environment. 1.2 In the final part of your answer describe why do causality is the central notion in the discipline Accounting.

Question 4 (10 Marks) Based on our class discussions and readings of Chapter 4 (The Business Environment and Strategy or Industry Organization Model) and Chapter 5 (Resource Led- Strategy or Resource Based View or Model). Basically, the whole notion of strategic management based on these two models. For competitive success every firm follows these two competing models to generate the inputs needed to formulate and implement strategies. Put simply, the Business Environment and Strategy focuses on external environment, which is the foundation of the "Industry Organization Model". On the other hand, Resource-Led-Strategy emphasizes on internal resources and their potential to create competitive advantage for the firm, which falls in line with the "Resource-Based View Model. The orientation that presented in the above paragraph might be captured by the elements of the following Figure that should be emphasized. Being professional accountant and strategist - you are well acquainted, there is causality (cause-and-effect) between the analyses of both firm's environments. Please describe and explain the causality between the critical components of firm's internal and external environment. Also, in the final part of your answer - please describe why do causality is the central notion in the discipline Accounting, Important Note: Your answer must be based on logical reasoning/rational and reflects your critical and analytical thinking