Lawrence R. Jauch and William F. Gleuck define Internal analysis and Internal diagnosis in following words:
Internal analysis – Definition
Lawrence R. Jauch and William F. Gleuck define
Internal analysis and Internal diagnosis in following words:
“Internal
analysis is the process by which the strategists examine the firm’s marketing
and distribution, research and development, production and operations,
corporate resources and personnel, finance and accounting factors to determine
where the firm has significant strengths and weaknesses. Internal diagnosis is
the process by which strategists determine how to exploit the opportunities and
meet the threats the environment is presenting by using strength and repairing
weakness in order to build sustainable competitive advantage.”
Internal analysis is the process of reviewing
organizational resources (resource audit), scanning organizational activities
and linking them with creation of value to the organization (value chain
analysis) and identifying the unique strengths and capabilities (core
competences).
As is
obvious from the above words, that the internal analysis involves three steps
as shown in Figure 7-1:
1. Resource
Audit.
2. Value
Chain Analysis
3. Core-competence
Identification.
Tags : Strategic Management - Environmental Analysis and Diagnosis
Last 30 days 3434 views