Internal Organizational Analysis

In formulating a strategy, the strategic decision makers must also analyze conditions internal to the organization. An internal analysis leads to a realistic company profile, which is the determination of a firm's strategic competencies and weaknesses.

The development of a company profile in four-step process:

* In step 1, managers audit and examine key aspects of the business's operation, seeking to target key areas for further assessment.

* Step 2 has managers evaluating the firm's status on these factors by comparing their current condition with past abilities of the firm.

* In step 3, managers seek some comparative basis - linked to key industry or product/market conditions - against which to more accurately determine whether the company's condition on a particular factor represents a potential strength or weakness.

* The final step in internal analysis is to provide the results, or company profile, as input into the strategic management process.

This explains internal analysis as a process, but in practice, efforts to distinguish each step are seldom emphasized because the process is very interactive.


Previous page Next page
Business And Its Environment
The information on this page may not be reproduced, republished or mirrored on another webpage or website.
Copyright 1998-2014 24xls.com