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Case 20 (page C-259): The Rise and Fall of ZO Rooms

Please read Case 20 and answer the following "questions for discussion."
  1. Determine if ZO Room’s business formula corresponds with the theories of the I/O model of above-average returns or the resource-based model of above-average returns. Explain your response, and outline the steps for the model that best reflects ZO Room’s situation.
  2. Define ZO Room’s tangible and intangible resources, and discuss their value to the organization. Identify the capabilities and core competencies that support the company’s competitive advantages. 
  3. Evaluate the firm’s decision-making capabilities. How does ZO Room locate attractive industries and select its strategic approach when pursuing promising market opportunities?
  4. Consider ZO Room’s competitive strategy. Assess the fitness of the firm’s organizational structure and controls to help the company achieve its strategic objectives. Can you identify any problem areas that may develop as the company faces oncoming competitive forces?
Please number each of your answers. This is very important so that I understand which questions you are responding to.
Please answer the questions completely. Remember, it is quality that counts so be brief yet thorough.
I selected the most interesting and applicable cases for the class. Please be sure to back up your answers with facts from the textbook. Good Luck!

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