1)

What Is Internal Analysis?

Let’s start with internal analysis. As the name suggests, internal analysis focuses on evaluating
all aspects of the organization itself. Although internal analysis can sometimes take into account
the actions of external organizations or market-wide shifts, it is largely related to the inherent
traits of the organization at hand.

For example, internal analysis can allow you to identify both strong and weak aspects of your
organization, without taking into account the performance of external organizations.

benefit of external analysis

As you might expect, external analysis is also very important in the context of strategic
management. When evaluating your organization’s goals and resources, you absolutely need to
look at the surrounding business environment. In a perfect world, it would be enough just to look
inside your organization; in the real world, you need to be conscious of external forces that might
affect your business’ operations and throw you off course

A PESTLE analysis helps you to identify the main external opportunities and threats in your
market:

 Political changes such as trade agreements between countries 

 Economic factors such as interest rates, exchange rates and consumer confidence
 Social factors such as changing attitudes and lifestyles, and the ageing population
 Technological factors such as new materials and growing use of the internet
 Environmental factors such as environmental law and impact on the environment
 Legal factors such as new and existing legislation 

benefit of internal analysis

In the context of strategic management, internal analysis is crucial for a few reasons.
Your organization might be spending too much in some areas due to internal
inefficiencies, or, alternatively, your organization could be leaving money on the table.
The only way to reveal these things — and get a true understanding of how resources are
being used in your organization — is by means of internal analysis.

we use A SWOT analysis combines external and internal analysis to summaries your Strengths,
Weaknesses, Opportunities and Threats. For example, a new business may note the following:

 Strength: enthusiastic employees or a unique product

 Weakness: no existing customer base and limited finances
 Opportunity: potential customers with problem the product solves, interested investors
  Threat: competition from established businesses with a bigger budget.

2)
Mission
The mission statement of a company is a declaration of what they do every day. It defines the
day-to-day activities of their work and every person who works for the organization contributes
to that mission. Think of it like the person who sets daily or weekly goals for themselves to
accomplish. It describes to employees and customers what is being done right now. It is present-
focused and can change very quickly depending on the circumstances of the business's market.

Vision
A vision statement is a clear, definitive statement of what you want to accomplish, and what the
world will look like once you've accomplished your mission. Think of it as the perfect scenario
that you're working toward accomplishing. Also, knowing what is important in the community
you are working in is oftentimes extremely important in crafting a vision statement. Unlike the
mission statement, a vision statement is future-oriented. It provides a sense of what the company
values to those both inside the company and out. At times, some companies will use their vision
statement for public relations purposes.

the purpose for having mission and mission in accompany

Internally

 Guide management’s thinking on strategic issues, especially during times of significant

change
 Help define performance standards
 Inspire employees to work more productively by providing focus and common goals
 Guide employee decision making
 Help establish a framework for ethical behavior

Externally

 Enlist external support

 Create closer linkages and better communication with customers, suppliers and alliance
partners
 Serve as a public relations tool.
3) discuss the critical issue to be considered during the external environmental analysis
Political
How stable is the political environment?
What are local taxation policies, and how do these
affect your business?
Is the government involved in trading agreements What are local employment levels per capita
such as EU, NAFTA, ASEAN, or others?
What are the foreign trade regulations?
What are the social welfare policies?
Social or Socio-cultural
What are local lifestyle trends?
What are the current demographics, and how are What is the government and industry’s level
they changing?
What is the level and distribution of education and
income?
What are the dominant local religions and what
influence do they have on consumer attitudes and
opinions?
What is the level of consumerism and popular
attitudes toward it?
What pending legislation is there that affects
corporate social policies (e.g., domestic partner
benefits, maternity/paternity leave)?
What are the attitudes toward work and leisure?
Environmental
What are local environmental issues?
Are there any ecological or environmental issues relevant Does intellectual property have legal
to your industry that are pending?
How do the activities of international pressure groups
affect your business (e.g., Greenpeace, Earth First,
PETA)?
Economic
What are current and forecast interest rates?
What is the level of inflation, what is it
forecast to be, and how does this affect the
growth of your market?
and how are they changing?
What are the long-term prospects for the
economy gross domestic product (GDP) per
capita, and so on?
What are exchange rates between critical
markets and how will they affect production
and distribution of your goods?
Technical or Technological
What is the level of research funding in
government and the industry, and are those
levels changing?
of interest and focus on technology?
How mature is the technology?
What is the status of intellectual property
issues in the local environment?
Are potentially disruptive technologies in
adjacent industries creeping in at the edges
of the focal industry?
How fast is technology changing?
What role does technology play in
competitive advantage?
Legal
What are the regulations regarding
monopolies and private property?
protections?
Are there relevant consumer laws?
 Environmental Legal
Are there environmental protection laws? What are the What is the status of employment,
regulations regarding waste disposal and energy heath and safety, and product safety
consumption? laws?

4) discuss the concept of portfolio planning and strategy

portfolio planning can be a useful tool. Portfolio planning is a process that helps

executives assess their firms’ prospects for success within each of its industries, offers
suggestions about what to do within each industry, and provides ideas for how to allocate
resources across industries. Portfolio planning first gained widespread attention in the
1970s, and it remains a popular tool among executives today.

Strategic Portfolio Planning is the business process by which organizations determine

the set of innovation and new product development (NPD) investments they will fund—
and those they won’t—to achieve their business objectives.

5) The Boston Consulting Group (BCG) matrix is the best-known approach to portfolio
planning Using the matrix requires that each businesses unit owned by a firm be categorized
along two dimensions: its share of the market and the growth rate of its industry. High market
share units within slow-growing industries are called . Because their industries have bleak
growth prospects, profits from cash cows should not be invested back into cash cows but rather
diverted to more promising growth businesses. This is not to suggest that cash cows are not to be
carefully managed to ensure that the maximum total profits are not “harvested,” just that
investments decisions must be grounded in a different set of values for cash cows.

The BCG matrix is just one portfolio planning technique. A different technique, developed with
the help of a leading consulting firm for GE, is the attractiveness-strength matrix, which also
examines diverse activities. This planning approach involves rating each of a firm’s businesses in
terms of the attractiveness of the industry and the firm’s strength within the industry. Each
dimension is divided into three categories, resulting in nine boxes. Each of these boxes has a set
of recommendations associated with it.

The BCG matrix fits products into one of four categories. The placement is based on market
growth and market share. Each product falls into a different quadrant, which helps your business
decide how to deal with different products.

Dogs are products with low growth and low market share. These products are typically viewed
as a waste. Money gets tied up into these products, but they do not produce enough of a profit to
justify the investment.

Question Marks, also known as “Problem Child,” are products in a high growth market with
low market shares. These products are called question marks because it is unclear which way
they will swing. Will they rise into the Stars quadrant, or will they drop down to Dogs?
stars Products that are Stars have a high market share in high-growth markets. These products
have the potential to become market leaders. They can eventually become Cash Cows, a
quadrant that we’ll discuss next).

Cash Cows are products that have a high market share in low-growth market. These are products
that drive revenue for your business. These are the four quadrants of the BCG matrix. This
matrix can help you see where your products fall and help you decide how to proceed next.

6) 7S model is a management model for making an internal analysis. 7S Model is an

organizational tool that assesses the wellbeing of seven internal factors of an organization as a
means of determining whether a company has the structural support to be successful.

The 7S Model specifies seven factors that are classified as "hard" and "soft" elements. Hard
elements are easily identified and influenced by management, while soft elements are fuzzier,
more intangible and influenced by corporate future . The hard elements are as follows:

 strategy is a plan developed by a firm to achieve sustained competitive advantage and

successfully compete in the market. In general, a sound strategy is the one that’s clearly
articulated, is long-term, helps to achieve competitive advantage and is reinforced by
strong vision, mission and values.
 structure represents the way business divisions and units are organized and includes the
information of who is accountable to whom. In other words, structure is the
organizational chart of the firm. It is also one of the most visible and easy to change
elements of the framework.
 systems are the processes and procedures of the company, which reveal business’ daily activities
and how decisions are made. Systems are the area of the firm that determines how business is
done and it should be the main focus for managers during organizational change.

The soft elements are as follows:

 Shared values are at the core of McKinsey 7s model. They are the norms and standards
that guide employee behavior and company actions and thus, are the foundation of every
organization.
 Skills are the abilities that firm’s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises of
what skills the company will really need to reinforce its new strategy or new structure.
 Style resents the way the company is managed by top-level managers, how they interact, what
actions do they take and their symbolic value. In other words, it is the management style of
company’s leaders.
 Staff element is concerned with what type and how many employees an organization will
need and how they will be recruited, trained, motivated and rewarded.

the importance of 7 s model in strategic management are

 To facilitate organizational change.

 To help implement new strategy.
  To identify how each area may change in a future.
 To facilitate the merger of organizations.

7) strategic evaluation and control could be defines as the process of determining the
effectiveness of a given strategy in achieving the organizational objectives and taking corrective
action wherever required. and it is also the assessment process that provides executives and
managers performance information about program, projects, activities designed to meet business
goals and objectives.

Evaluation and control mechanisms are set in place to inform every stage of the

strategic management process. They are a means of collecting whatever information

we may need to compare plans against actual events, to ensure that things are

working well, and to anticipate, or correct, any faults or weaknesses in the system.

the benefits of strategy evaluation and control is that

 They provide direction. They enable management to make sure that the
organization is heading in the right direction and that corrective action is taken
where needed.
 They provide guidance to everybody. Everyone within the organisation, both
managers and workers alike, learn what is happening, how their performance
compares with what is expected, and what needs to be done to keep up the good
work or improve performance.
 They inspire confidence. Information about good performance inspires
confidence in everybody. Those within the organization are likely to be more
motivated to maintain and achieve better performance in order to keep up their
track record. Those outside – customers, government authorities, shareholders are likely
to be impressed with the good performance.

8)

Strategy evaluation is that phase of the strategic management process in which top management
try to assure that the strategy formulated is being properly implemented and is meeting its
objectives of the enterprise.  A follow through on strategy and at implementation requires a
control system and effective information system, which provides managers with accurate and
complete feedback in real-time so that they can act on the data.

TYPES OF STRATEGY EVALUATION AND CONTROL WITH EXAMPLE??

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