Chapter 3 The external assessment and internal assessment

Today this class is so happy...We were move to next chapter about internal and external assessments..Erm i think is so interesting for us to learn more about that..If you have an established business where the mission is established then, most often, the mission guides the vision statement and the rest of the strategic plan. Either way, you need to know your fundamental purpose: the mission, your current situation in terms of internal resources and capabilities (strengths and/or weaknesses) and external conditions (opportunities and/or threats), and where you want to go - the vision for the future.

What is INTERNAL ASSESSMENT????

 

All organizations have strengths and weaknesses in the functional areas of business.  No enterprise is equally strong or weak in all areas.  Internal strengths/weaknesses, coupled with external opportunities/threats and a clear statement of mission, provide the basis for establishing objectives and strategies.  Objectives and strategies are established with the intention of capitalizing upon internal strengths and overcoming weaknesses. 

 

And now for EXTERNAL ASSESSMENT....

There are several factors to assess in the external situation analysis:

• Markets (customers)
• Competition
• Technology
• Supplier markets
• Labor markets
• The economy
• The regulatory environment

This is external audit

#Gather competitive intelligence

#Assimilate information

#Evaluate

#Resulting in a list of the most

#Important key external factors

 

Porter developed his Five Forces analysis in reaction to the then-popular swot analysis. Porter's five forces is based on the Structure-Conduct-Performance paradigm in industrial organizational economics. It has been applied to a diverse range of problems, from helping businesses become more profitable to helping governments stabilize industries.

The nature and degree of competition in an industry hinge on five forces:
1) the threat of new entrants
2) the bargaining power of customers
3) the bargaining power of suppliers
4) the threat of substitute products pr services
5) the jockeying among current contestants.