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GMAT Sentence Correction (SC) | The normative model of strategic decision-making suggests

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The normative model of strategic decision-making suggests that executives examine a firm’s external environment and internal conditions, and in using the set of objective
criteria they derive from these analyses, can decide on a strategy.

Lets break the sentence into its clauses and phrases:
Clause-1 : The normative model of strategic decision-making suggests - Normative Model is the subject and suggests is the verb
Clause-2 : that executives examine a firm’s external environment and internal conditions

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