Discussion Thread: Internal Environment, Power / Weakness, and DecisionModelsStrategic planning has been defined as an organized and regular effort to make proper decisions andventure into fundamental actions. It is designed by an organization's senior executives and is consideredone of the ways to help the organization and societies to deal effectively with the changing situation inthe world (Nosraty et al., 2016).Good company situation analysis, like good industry and competitiveanalysis, is a valuable precondition for good strategy making (Gamble et al., 2021). The purpose of thispaper is to examine the purpose and process of examining a company’s internal environment.Process: Evaluating the Internal EnvironmentThe process of evaluating a company’s internal environment includes evaluating the strategy from aqualitative standpoint (completeness, internal consistency, rationale, and suitability to a situation), andfrom a quantitative standpoint (strategic and financial results the strategy is producing (Gamble et al.,2021).Cost comparisons are critical in industries where price competition is the ruling force.Two analysis toolsuseful in determining whether a company’s value proposition and costs are competitive are value chainanalysis and benchmarking (Gamble et al., 2021).Jaligot et al. (2016) shared a value chain as the full range of activities which are required to bring aproduct or service from conception, through the different phases of production (involving a combinationof physical transformation and the input of various producer services), delivery to final consumers, andfinal disposal after use. Each step or link in the value chain involves a source input, a process of valueaddition and selling the material to the next link in the chain. Each step adds value to the product andoften generates more revenue than the previous step.Benchmarking is potent tool for learning which companies are best at performing activities and thenusing their best practices to improve the cost and effectiveness of a company’s own internal activities(Gamble et al., 2021).
