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Module 3 Internal Environment - Coggle Diagram
Module 3
Internal Environment
3.2 Assessing current performance
To understand current performance in order to drive future strategic options
Measured against the organisation’s goals, comparable organisations and industry averages
Data analytics:
to get value out of their data, and to be able to exploit big data, an organisation needs:
access to good data
the ability to analyse the data
the ability to turn analytic insight into commercial insight
A framework for performance assessment
1. Strategic driver
2. Operational drivers
3. People and organisational drivers
3.4 Operational drivers
Shareholder view (value-based management)
Stakeholder view
Competitive business environment benchmarks
The balanced scorecard
3.3 Strategic drivers
Strategic drivers differentiate an organisation from its competitors and thus are central to an organisation’s performance.
Key strategic drivers
Industry and markets
Customers
Products and services
Channels
Competitive advantage and generic strategy
3.1 Understanding key stakeholders
Step 1: identify stakeholders
Step 2: assess alignment of stakeholder needs
assess whether the needs of different groups are aligned with each other and with the organisation and its current strategy
Step 4: techniques for interacting with stakeholder groups
Step 3: assess the relative power of stakeholder groups
using a stakeholder power–interest grid
3.6 The role of resources and capabilities in strategy
Resources, capabilities and competitive advantage
Resources
are the productive assets owned by the firm
Capabilities
are what the firm can do.
Strategy
is concerned with matching an organisation’s resources and capabilities to the opportunities and threats that arise in the external environment
Analysing resources and capabilities
Appraising resources and capabilities
:
YES
to 4 questions
valuable?
rare?
costly to imitate or replicate?
non-substitutable?
3.8 Further leadership and management implications for internal analysis
Implications for leaders and managers
The factors within the internal environment are under the organisation’s control -> can be managed by its leaders.
Leaders and managers create an environment that values data as a resource and has the capabilities to use it to strategic advantage.
Leaders and management to understand the different stakeholder groups and their needs -> to set and steer the overall direction of the organisation and how managers direct the organisation’s use of its resources and capabilities.
3.7 Combining external and internal analysis
SWOT analysis
Strength, Weakness
sourced from internal analysis
Opportunities, Threats:
sourced from external analysis
GAP analysis
External environment and the current strategy => whether there is
external consistency
Internal environment and business strategy =>
internal inconsistencies
3.5 People and organisational drivers
Values, innovation and learning
Values:
are often not included in definition of strategy yet core to it;
result directly from the organisation’s vision and mission;
need to be identified and communicated to attract the right people and manage the culture of the organisation.
Innovation and learning
: for innovation to occur, learning must take place at both the individual and the organisational level.
Knowledge management