Question

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?

Answer 1

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?

Strategic planning is a critical component to enabling businesses to establish a road map to move them from their current position, and become more successful based on already identified goals and objectives. Looking at the differences between internal and external analysis, the internal analysis helps understand a business’ strengths and weaknesses in terms of its technologies, skills, capabilities, resources, and related assets that an organization has, whereas the external analysis in strategic management explores the opportunities and threats confronting an organization. To conduct the internal analysis, businesses particularly examine their strategic capabilities in marketing, finance, and organization. On the other hand, the threats and opportunities factors are external and out of control of a business. Examining the external factors would see a business explore among other issues the laws, economy, politics, community and competition as the key external elements affecting their operations. Identifying and dealing with these external factors within businesses on time will help ensure that these businesses remain on course to achieving their set strategic goals and objectives. Results of the internal analysis informs businesses on the strengths they need to exploit, and weakness to address. On the other hand, the results of the external analysis informs businesses on the opportunities to exploit and develop a competitive advantage over rivals, while confronting threats they face.

Clinton, great post on external and internal analysis in strategic planning.Conducting the SWOT analysis that helps understand the specific strengths, weaknesses, opportunities, and threats confronting a business, is important to helping understand what a business could be doing right and concentrate on that, while at the same time assessing where there is need to make changes to ensure that abusiness is on course to achieving its specific goals. Among other benefits, SWOT analysis can help businesses know how to strategically position themselves against competitors , ways to efficiently use available resources, address potential risks, and how best to deal with weaknesses and improve business operations.

Nichole, great post particularly on the internal and external aspects that businesses should consider during strategic planning.SWOT analysis during strategic planning provides an all-round view of a company’s current and future situation. The strengths and weaknesses factors specifically help evaluate the current position of a business, whereas the opportunities and threats aspects help a business understand its potential challenges and possibilities as the business moves into the future. The SWOT analysis matrix is very helpful in that it helps to horizontally and vertically the strengths, weaknesses, opportunities, and threats relating to a specific business, giving a simple way for businesses to know if their specific goals and objectives are strategically fit. The best strategic fit is said to have been achieved when a business’ internal environment is in alignment to its external environment.