Internal Envrionment

In: Business and Management

Submitted By panny14
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Internal Environment Ch6 -Mini Lecture
Last session I exposed you to two tools that you will use in the analysis phase of the strategic management process. More specifically, tools which helped you analyze the external environment. Now I want to introduce you to three (really two and a half) tools that help you analyze the internal environment.
SWOT Analysis
Chapter 6 of your text describes how to conduct a SWOT analysis. In short the S’s and O’s are good, the W’s and T’s are not. The S’s and W’s are internal and the O’s and T’s are external. Last module we gave you two tools to use when you look at the T’s (PESTEL and P5F). Remember, T’s are about the environment so we know that real well. I am not going to spend any time on the O’s, that will be for a later discussion on entrepreneurship but let’s now turn our attention to the internal stuff – the S’s and W’s. What we most want to focus on today is the S’s - the strengths.
So how do we know what our strengths really are, where do we look for them within our organization and what criteria do we use to determine whether or not it truly is strength.
Value Chain Analysis
Michael Porter didn’t only focus on the external environment but he also gives us a tool for the internal environment – The value chain. He proposes that there are nine core activities in which organizations engage which have the potential of providing the organization with a sustainable competitive advantage over its rivals. Looking at exhibit 6.4 in your text (pg. 146) you see there are primary activities (those that make the money) and support activities (those that help facilitate the primary activities). Suppose we looked at Research in Motion for a moment and asked which of these activities do they do so well that they have created an advantage for themselves over their competitors? I am sure there are many and in your due…...

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