Just a few sentences answering these questions please. With a reference or two.
1. Compare and contrast the resource-based, the functional, and value-chain approach to internal analysis - pros and cons of each?
2. How does internal analysis fit within a SWOT approach?
3. How does a firm's industry life cycle impact strategy formulation? What competencies and skills are needed at which evolutionary stage?
4. Pros and cons to benchmarking - who should Harvard benchmark themselves against? Why?
5. Find McDonalds' most recent annual report on the net. Develop liquidity, leverage, activity and profitability ratios for the firm (at least for the last reported year). Would you buy, sell, or hold this firm's stock given your analysis? Explain.
Resource based internal analysis involves the identification of a company's strategic resources thus establishing areas where it has competitive advantage. Each organization has different resources and also has different organizational capabilities to exploit assets as its disposal thus this tool analyzes what resources makes an organization different from others (Arend & Lévesque, 2010). The advantage of using resource based view to conduct an internal analysis is that it enables the company to identify resources it can maximize on in order to improve competitive advantage. The downside of using this method is that it only focuses on organizational resources and ignores other variables in a company.
Value chain approach to internal organizational analysis views an organization as a chain of processes that transforms inputs into outputs valued by customers. It categorizes an organization into different set of activities that create customer value. An advantage of using value chain approach to conduct analysis is that it facilitates better ...
Strategic management for resource-based, internal analysis, life cycle and benchmarking are examined.