Differences in external and internal analysis
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1. How is an internal analysis different from an external analysis?
2. How do core competencies and distinctive organizational capabilities differ?
3. How is an internal audit different from the value chain analysis?
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Solution Summary
Provide the differences in the following: Internal analysis vs. external analysis, core competencies vs. distinctive organizational capabilities, internal audit vs. value chain analysis.
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Differences in analysis types and core competencies and capabilities
How is an internal analysis different from an external analysis?
An internal analysis derives an organizations strengths and weaknesses. It may include an analysis of the company's manufacturing, marketing, technological, financial and human resources in order to assess opportunities, strengths or weaknesses.
An external analysis focuses on factors outside an organization that may have an impact on the organization, such as the characteristics of an organization's customers, market segments, positioning strategies, competitors, marketing environment and social change.
How do core competencies and distinctive organizational capabilities differ?
Distinctive Organizational Capabilities
• Special and unique capabilities
• Distinguish from competitors
• Sustainable competitive advantage
• Outperform competition
Core Competencies
• Not a source of competitive advantage
• Develop distinctive ...
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