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WEEK 3 ASSIGNMENT: INTERNAL ENVIRONMENTAL ANALYSIS

Assess the organization’s internal environment. Chapt.. .3
- Examine the firm’s entire portfolio of resources and capabilities.
  - The four primary categories of tangible resources are financial, organizational, physical, and technological (see Table 3.1). The three primary categories of intangible resources are human, innovation, and reputational (see Table 3.2).
  - As illustrated in Table 3.3, capabilities are often developed in specific functional areas (such as manufacturing, R&D, and marketing) or in a part of a functional area (e.g., advertising). Table 3.3 shows a grouping of organizational functions and the capabilities that some companies are thought to possess in terms of all or parts of those functions.
  - Capabilities that are valuable, rare, costly to imitate, and nonsubstitutable are core competencies (see Table 3.4). In turn, core competencies can lead to competitive advantages for the firm over its rivals. –
Identify the most important strengths and weaknesses of your organization including an assessment of the organization’s resources.
- Link the strengths and weaknesses from last week’s SWOTT to the analysis of the resources – resources, capabilities and competencies

Identify the most important internal environmental factors in the general, industry, and external analysis in relation to the internal analysis.
- Relate the PESTL analysis and the five force analysis from last week’s paper to the internal analysis – resources, capabilities and competencies
- How do the competencies overcome negative environmental factors or enhance advantageous environmental factors – This is done by doing a Value chain analysis
Perform competitor analysis.
- Identify top -5-10 competitors
  - Market commonality
  - Resource similarity
  - When performing a competitor analysis, a firm analyzes each of its competitors with respect to market commonality and resource similarity. The results of these analyses can be mapped for visual comparisons. In Figure 5.3, we show different hypothetical intersections between the firm and individual competitors in terms of market commonality and resource similarity.
Assess the structure of the organization and the influence this has on its performance.(Chapt., 11
- Organizational structure specifies the firm’s formal reporting relationships, procedures, controls, and authority and decision-making processes.
- Effective structures provide the stability a firm needs to successfully implement its strategies and maintain its current competitive advantages while simultaneously providing the flexibility to develop advantages it will need in the future
- Three types: simple, functional, multidivisional
  - The simple structure is matched with focus strategies and business-level strategies, as firms implementing these strategies commonly compete by offering a single product line in a single geographic market
  - The functional structure supports implementing business-level strategies and some corporate-level strategies (e.g., single or dominant business) with low levels of diversification.
  - The multidivisional (M-form) structure support implementation of related and unrelated diversification strategies, the M-form helps firms successfully manage diversification’s many demands.61 Chandler viewed the M-form as an innovative response to coordination and control problems
Determine the organization’s competitive position and the possibilities this provides.
- Competitive positioning: define how the firm will/should “differentiate” its offering and create value for its market. –
  - Which of the four generic strategies should your firm use and why
- “How do you differ, and how can you position yourself for the best competitive advantage?
  - Are your prices and costs competitive?
  - Do you compete effectively in terms of product or service quality?
  - Are you seen as the vendor of choice? — Why do people seek you out?
- “Are you growing, losing ground or just holding onto your market share?”
  - Misner, I. (2018). What is your company’s competitive position? Retrieved from http://ivanmisner.com/what-is-your-companys-compet…
- https://www.coursera.org/learn/uva-darden-foundati…