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TOPIC 4 - Internal Environmental Analysis
TOPIC 4 - Internal Environmental Analysis
Introduction
➢ Strategic analysis of any Business
enterprise involves two stages: Internal
and External analysis.
Internal analysis
Resources
➢ Resources are assets employed in the activities and
processes of the organization.
➢ They can be tangible or intangible.
➢ They can be obtained externally (organization-
addressable) or internally generated (organization-
specific).
➢ They can be specific and non-specific:
➢ Specific resources can only be used for highly
specialized purposes and are very important to the
organization in adding value to goods and services.
➢ Assets that are less specific are less important in adding
value, but are more flexible.
➢ Resources fall within several categories:
➢ Human
➢ Financial
➢ Physical
➢ Technological
➢ Informational
Inputs to Integration of
the firm’s resources into
processes value-adding
activities
Not all capabilities are core Denotes feedback
competences – only those loop
that add greater value than denotes core competence
those of competitors development
Materials Management
Human Resources
Information Systems
Company Infrastructure
Primary Activities
➢ Certain activities or combinations of activities are
likely to relate closely to the organization’s core
competences, termed core activities. They are:
➢ Add the greatest value
➢ Add more value than the same activities in
competitors’ value chains
➢ Relate to and reinforce core competences
Distribution
Supplier Organization Customers
channel
Distribution
Supplier Competitor channel
Customers
Core
activities
Value
chain
Configuration Co-ordination
Internal External
Concentration Dispersion
co-ordination co-ordination
Internal External
Internal linkages linkages
activities
Value-adding Suppliers Channels
External activities Customers
activities
Value system