Approaches to Internal and External Environmental Analysis

TASK 2
Strategic marketing

2.1 Approaches to Internal
Environmental Analysis
The internal environment of an organization is
constituted from the various conditions, events and
factors within the entity and has a major impact on the
behavior of the stakeholders working within it
The mission statement, leadership and management
style, working culture etc. are considered a part of the
internal environment. This analysis determines the
resources of the company which generate the strengths
and weaknesses of the enterprise

Contd.
The following are some of the techniques evolved to
analyze the internal environment:
Mc - Kinsey 7-S Framework: It is a Value based
Management Model to organize a company holistically
and effectively. Shared value, Strategy, Structure,
System, Staff, Style and Skill are the 7-S which are
analyzed
Resource-based Analysis: It aims at gaining
competitive advantage by exploiting external
opportunities with the use of available resources in an
innovative manner rather than developing new skills
for individual opportunities.

Contd.
Portfolio Analysis: It analyzes various elements of
product mix to ascertain the optimum allocation of its
resource by plotting it on a matrix. IKEA has adopted
this technique by rating the available products and
services as per the demand in the market. This has
enabled the company to ascertain which area requires
more time and money and which requires less.