PPT: Strategic Analysis: Internal Environment | Financial Management & Strategic Management for CA Intermediate PDF Download

 Page 1


Introduction
What is an Internal Analysis?
Internal Analysis
?Identifies and evaluates resources, capabilities, and core 
competencies
?Looks at the organization’s
oCurrent vision
oMission
oStrategic objectives
oStrategies
Why Do an Internal Analysis?
? It is the only way to identify an organization’s strengths and 
weaknesses
? It’s needed for making good strategic decisions
Page 2


Introduction
What is an Internal Analysis?
Internal Analysis
?Identifies and evaluates resources, capabilities, and core 
competencies
?Looks at the organization’s
oCurrent vision
oMission
oStrategic objectives
oStrategies
Why Do an Internal Analysis?
? It is the only way to identify an organization’s strengths and 
weaknesses
? It’s needed for making good strategic decisions
INTERNAL SCANNING: 
ORGANIZATION ANALYSIS
• Critical strength and 
weaknesses to determine if 
firm able to take advantage of 
opportunities and  avoid threats
Internal 
strategic 
factors
• Concerned with identifying and 
developing an organization’s 
resources and competencies
Organizational 
analysis 
Page 3


Introduction
What is an Internal Analysis?
Internal Analysis
?Identifies and evaluates resources, capabilities, and core 
competencies
?Looks at the organization’s
oCurrent vision
oMission
oStrategic objectives
oStrategies
Why Do an Internal Analysis?
? It is the only way to identify an organization’s strengths and 
weaknesses
? It’s needed for making good strategic decisions
INTERNAL SCANNING: 
ORGANIZATION ANALYSIS
• Critical strength and 
weaknesses to determine if 
firm able to take advantage of 
opportunities and  avoid threats
Internal 
strategic 
factors
• Concerned with identifying and 
developing an organization’s 
resources and competencies
Organizational 
analysis 
RESOURCE-BASED VIEW
Resources
•Asset (tangible  and intangible), 
competency, process, skill or 
knowledge controlled by the 
corporation  
Capabilities 
•A corporation ability to exploit its 
resources 
Page 4


Introduction
What is an Internal Analysis?
Internal Analysis
?Identifies and evaluates resources, capabilities, and core 
competencies
?Looks at the organization’s
oCurrent vision
oMission
oStrategic objectives
oStrategies
Why Do an Internal Analysis?
? It is the only way to identify an organization’s strengths and 
weaknesses
? It’s needed for making good strategic decisions
INTERNAL SCANNING: 
ORGANIZATION ANALYSIS
• Critical strength and 
weaknesses to determine if 
firm able to take advantage of 
opportunities and  avoid threats
Internal 
strategic 
factors
• Concerned with identifying and 
developing an organization’s 
resources and competencies
Organizational 
analysis 
RESOURCE-BASED VIEW
Resources
•Asset (tangible  and intangible), 
competency, process, skill or 
knowledge controlled by the 
corporation  
Capabilities 
•A corporation ability to exploit its 
resources 
RESOURCE-BASED VIEW
Competency
Core 
competency
Distinctive 
competency 
Page 5


Introduction
What is an Internal Analysis?
Internal Analysis
?Identifies and evaluates resources, capabilities, and core 
competencies
?Looks at the organization’s
oCurrent vision
oMission
oStrategic objectives
oStrategies
Why Do an Internal Analysis?
? It is the only way to identify an organization’s strengths and 
weaknesses
? It’s needed for making good strategic decisions
INTERNAL SCANNING: 
ORGANIZATION ANALYSIS
• Critical strength and 
weaknesses to determine if 
firm able to take advantage of 
opportunities and  avoid threats
Internal 
strategic 
factors
• Concerned with identifying and 
developing an organization’s 
resources and competencies
Organizational 
analysis 
RESOURCE-BASED VIEW
Resources
•Asset (tangible  and intangible), 
competency, process, skill or 
knowledge controlled by the 
corporation  
Capabilities 
•A corporation ability to exploit its 
resources 
RESOURCE-BASED VIEW
Competency
Core 
competency
Distinctive 
competency 
Barney, VRIO framework
RESOURCE-BASED VIEW
Value
• Does it 
provide 
competitive 
advantage?
Rareness
• Do other 
competitors 
posses it?
Imitability
• Is it costly 
for other to 
imitate?
Organization 
• Is the firm 
organized 
to exploit 
the 
resource?