Scribd
Upload
4 views4 pages

Extreme Topper Notes

The document outlines the internal environment of a business, detailing its components such as human resources, physical resources, financial resources, and organizational culture. It discusses the importance of stakeholders, strategic drivers, and various analytical tools like SWOT and the Mendelow Matrix for strategic decision-making. Additionally, it covers competitive strategies including cost leadership, differentiation, and focus strategies to achieve competitive advantage.

Uploaded by

Pranavi Rajamahendran
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
4 views4 pages

Extreme Topper Notes

The document outlines the internal environment of a business, detailing its components such as human resources, physical resources, financial resources, and organizational culture. It discusses the importance of stakeholders, strategic drivers, and various analytical tools like SWOT and the Mendelow Matrix for strategic decision-making. Additionally, it covers competitive strategies including cost leadership, differentiation, and focus strategies to achieve competitive advantage.

Uploaded by

Pranavi Rajamahendran
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Strategic Analysis: Internal Environment

(EXTREME TOPPER NOTES)


1. Internal Environment (Concept + Depth)
Internal environment refers to all internal factors affecting business.

Includes: people, structure, culture, processes, resources.

It is controllable and unique for every organization.

2. Components of Internal Environment


• Human Resources → employees, skills, leadership

• Physical Resources → machinery, buildings

• Financial Resources → capital, funds

• Organizational Culture → values, ethics

3. Stakeholders (Deep Understanding)


Stakeholders = anyone who affects or is affected by business.

Types: Internal (employees, managers) & External (customers, govt)

Their expectations shape strategy decisions.

4. Mendelow Matrix (Exam Favourite)


Based on POWER and INTEREST

Key Players → High Power + High Interest (manage closely)

Keep Satisfied → High Power + Low Interest

Keep Informed → Low Power + High Interest

Low Priority → Low Power + Low Interest

5. Strategic Drivers (Very Important)


Drivers = factors that influence performance
• Industry & Markets

• Customers

• Products/Services

• Channels

6. Industry & Market Analysis


Industry = similar businesses group

Market = buyers + sellers

Strategic Group Mapping → compare competitors visually

7. Customer Analysis
Customer = buyer | Consumer = user

Segmentation helps target right audience

Customer satisfaction leads to profit

8. Product Strategy
Product = goods + services offered

Strategies: branding, innovation, pricing

Differentiation can be real or psychological

9. Channels (Distribution Power)


Channels = path from producer to consumer

Types: sales, product, service

Strong channels = entry barrier for competitors

10. Core Competency (MOST IMPORTANT)


Core competency = unique strength of firm

Conditions (VRIN): Valuable, Rare, Inimitable, Non-substitutable


11. SWOT Analysis
Strengths & Weaknesses → Internal

Opportunities & Threats → External

Used for strategy building

12. Competitive Advantage


Occurs when firm performs better than rivals

Leads to higher profits and market position

13. Porter’s Generic Strategies


Cost Leadership → lowest cost

Differentiation → unique product

Focus → niche market

14. Cost Leadership (Deep)


Aim: reduce cost at all levels

Advantages: survive competition

Risks: imitation, tech changes

15. Differentiation (Deep)


Unique features → premium pricing

Advantages: loyalty

Risks: costly, copied

16. Focus Strategy


Target specific segment

Types: focused cost & focused differentiation

17. Best Cost Strategy


Balance of cost + quality
Gives best value to customers

You might also like