Differences: internal analysis and external analysis

Part 1. Respond to the following in a minimum of 175 words: Discuss the differences between an internal analysis and an external analysis with respect to strategic planning. What do organizations t

Part 1. Respond to the following in a minimum of 175 words:

Discuss the differences between an internal analysis and an external analysis with respect to strategic planning. What do organizations typically analyze as part of an internal analysis, and why? What do organizations typically analyze as part of an external analysis, and why? How do the results of each of these analyses inform an organization’s strategic plan?

Part 2. Reply to the following classmate in a minimum of 100 words:

“Strategic planning isn’t easy and take a lot of planning and analysis. I will be explaining two type of analysis, internal and external. I will begin with discussing internal analysis. This is a self and honest evaluation of many factors that can affect a business. Being honest regardless of your position within your organization is expected during this analysis. This will provide the results you are looking for and also prepares you for the external analysis. When a external analysis occurs, you have someone from outside your agency or business come in and overlook the same factors but can always provide a different feedback as to your internal analysis. This type of analysis can get peoples feelings hurt or can also show how successful your operations are being conducted.

The factors many organizations consider during these analysis are those that can bring them down and require immediate attention. As a functional organization, there must be regulations, policies and procedures and assigned personnel in place. This allows accountability and room for recognition depending on the analysis results. Internal analysis allow for issues to be repaired to ensure external teams don’t come in and make your organization look dysfunctional.

Digging deeper as to what external analysis can also be considered is ensuring all elements being purchsed contracted or distributed within your organization are quality. Analyzing these elements allow you to take pride in who you work with because opportunities can arise for them with other companies. Making them feel as part of your success can become part of their success thus meaning everyone is a winner on both sides of the spectrum.

With all these analysis and factors, it allows a organization to see their good, bad and ugly and take action on them. Sometimes organizations tend to forget to conduct these types of analysis but if you place these items within your planning phases to success, on your calendars, it will allow for no inspections to be disregarded. It makes you a better organization knowing there are always going to be issues within but taking actions to repair or focus on the success lines is key. Never be afraid to be told there are flaws within your organization, it only makes it better.” Eduardo H.

Part 3. Respond to the following classmate in a minimum of 100 words:

“External analysis consists of mitigating threats and leveraging advantage. It is important to analyze anything that affects competitive advantage in the market. External factors include many areas such as legal, technological, political, economical, and sociocultural. (Rothaermel, 2019) Firm’s analyze these areas to see where they stack up against the competition and how to improve in areas where they are being beat.

Internal analysis involves analyzing core competencies, capabilities, and resources. Core competencies are the unique advantage that a firm has. Capabilities refer to an firm’s ability to create, upgrade, and re-configure. Resources describe the tangible and intangible attributes that a firm has. Tangible assets include buildings, equipment, and money. Intangible assets include IP, brand equity, and reputation. (Rothaermel, 2019) Internal factors are able to be controlled by the firm, while external factors are based off of factors out of the firm’s control. An internal level is where firm’s create value and increase competitive advantage, so analysis is key.

These two analysis allow the firm to have a complete view of where they stand in the market amongst competitors. A PESTLE analysis will help reveal external threats and opportunities, while a SWOT analysis will help reveal strengths and weaknesses internally. This lays out a strategic plan to advance in areas of opportunity, work on weaknesses, and identify and increase competitiveness with threats.” – Jerry F.

Rothaermel, F. (2019). Strategic Management (4th ed). New York, NY: McGraw-Hill Education.

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