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Internal Analysis

Internal Analysis. Strategic Management Chapter 4 Section 092; Team 5 Matthew Tawfiq, Jacqueline Henderson, Paul Briseno , Richard Alven. Internal Analysis Defined. Process of evaluating organizations resources and capabilities Why?

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Internal Analysis

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  1. Internal Analysis Strategic Management Chapter 4 Section 092; Team 5 Matthew Tawfiq, Jacqueline Henderson, Paul Briseno, Richard Alven

  2. Internal Analysis Defined • Process of evaluating organizations resources and capabilities • Why? • “In order to formulate appropriate and effective strategies you have to know what an organization can and cannot do well, and what assets it has or does not have”

  3. Resources to Organizational Capabilities • Resources are useless on their own • Organizational Capabilities – various routines and process that transforms resources into outputs • Organizational Routines and Processes – Regular, predictable, and sequential work activities done by organizational members

  4. Create a Competitive Advantage • Capabilities involve interactions between people, people, and resources. • Must get right combination and routines down • Can’t just gather resources! Have to use them properly!

  5. Southwest vs. Delta • Dynamic Capabilities • An organizations ability to build, integrate and reconfigure capabilities to address rapidly changing environments

  6. Core Competencies • Any major value-creating capabilities organizations have that are essential to their business are as core competencies • Enhance organizations capabilities

  7. Distinctive Capabilities • Special and unique capabilities that distinguish an organization from its competitors • Disney Distinct Capabilities • Theme parks that offer rides, entertainment, food, onsite lodging and packages. • These are things traditional theme parks do not offer.

  8. Distinct Capabilities • Contributes to superior customer service • Can be used in a variety of ways • Is difficult for competitors to imitate

  9. Competitive Advantage • Competitive advantage sets organization apart from others • Affects performance results positively

  10. Internal Analysis • Strengths: Resources and capabilities developed into sustainable competitive advantage • Weaknesses: Resources and capabilities that are lacking or deficient and prevent the organization from developing sustainable competition

  11. Types of Internal Analysis Value Chain Internal Audit • Capabilities Profile

  12. Value Chain • Systematic way of examining all the organizations functional activities and how well they create customer value

  13. Internal Audit • A thorough assessment of an organizations internal areas • Assess resources and capabilities from all perspectives • Determine what company is capable of and what it is not capable of.

  14. Internal Audit • Organizational Functions • Production-Operations • Marketing • Financial-Assets • Management • Info Systems • Organizational Elements • Strategic Management • Organizational Structure • Organizational Culture

  15. Capabilities Assessment Profile

  16. Determining Strategical Weaknesses • Internal Analysis reflects strengths and weaknesses

  17. How are your competitors doing? • Compare capabilities to see how you stack up. • Public information • Forbes, Fortune • Marketing reports • Grey Zone • Borderline Criminal • Trash, spying

  18. Why is an Internal Analysis Important • Only way to identify strengths and weaknesses • Needed for making good strategic decisions

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