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Reply to two prompts in 100 words each. No sites needed, these are just thoughts on the prompts.
(Original prompt for you consideration,
- Discuss the differences between an internal analysis and an external analysis with respect to strategic planning.
- What do organizations typically analyze as part of an internal analysis? Why?
- What do organizations typically analyze as part of an external analysis? Why?
- How do the results of each of these analyses inform an organization’s strategic plan? )
Prompt 1: With regards to strategic planning, there are a few main differences between an internal and an external analysis. For example, internal analysis evaluates and identifies what goes on within the business from a broader spectrum. External analysis focuses more from the outside perspective of the business and what is hurting or helping the business in their success. For the internal analysis, organizations usually analyze the competency level of employees, competition within the market, and costs for things within the company such as cost for payment of employees amongst other things. For the external analysis, organizations will typically analyze resources, products, contractors, suppliers, and the consumer/customer base. These things can help the company see what strengths and opportunities they have while have a well-rounded understanding of what goes on in the business. The results can also help with making sure the strategic plan is stronger and that if there are any issues or hiccups that arise they are able to be taken care of in a faster, more constructive way. It will also make sure all deliverables and bases are covered in their strategic plan
Prompt 2: Even though a business is open and operating does not mean they can sit back and let the business glide through. Owners and managers must continuously analyze their internal structures, policies and daily tasks. To be successful, combing through how daily operations are carried out can save money and employee turnover in the long run. This also gives the company the opportunity to expand or grow their business to stay competitive. For example, in the produce business every year there are new varieties that are introduced. Many of the new varieties have better disease resistance and the yields per plant are much higher. A common practice in the industry is to test new varieties every year and wean out the varieties that will not be best for the business. A business must also do an external business analysis. There are many external factors that can make or break a company. Changes in the market or supplies can affect the success of the company. Technology is also a big factor to many business not only in the production but also the efficiency of the business.
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