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MGT 488 Week 1-DQ2

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Why is the internal organizational analysis important to strategic management
planning?
When developing a strategic business plan, a company must analyze internal and external
environments to be effective. A company can reduce the time needed to complete a strategic plan
by conducting a SWOTT analysis. However, a strategic plan can be developed without a
SWOTT but the analysis certainly helps outline the plan. In lieu of a SWOTT analysis, a
company can employ other methods like the resource-based view or a value chain analysis.
An internal analysis helps resolve potential issues and answer current questions that will affect
the company’s current efficiency and define strengths and weaknesses within the firm. Although
other internal methods exist, the SWOTT is used more widely because of its simplicity.
What are various sources of internal organization dynamics that influence
strategic business planning?
When developing a strategic business plan, an internal analysis is very useful in defining the
goals and objectives needed to achieve those goals. The analysis helps to ask questions and
answer those questions. “Managers often start their internal analysis with questions like, how
well is the current strategy working? What is our current situation? Or what are our strengths and
weaknesses?” (Pearce & Robinson, 2009, p. 157). The most popular internal analysis used by
managers is the SWOTT analysis. As mentioned, this analysis is simple to use and defines the
strengths, weaknesses, opportunities, threats, and trends for a firm.
How might nonsubstitutable capabilities affect strategic management planning?
Nonsubstitutable capabilities can affect strategic management planning because these capabilities
are ambiguous and difficult for competitors to imitate. “Nonsubstitutable capabilities are
capabilities that do not have strategic equivalents” (Hitt, Ireland, & Hoskisson, 2009, p. 83).
Information or knowledge that a company specifically possesses can aid a company in its market
presence and build competitive advantage. Embracing this opportunity can prove successful for a
company and including this in the strategic plan is beneficial. However, these capabilities can be
difficult to identify and may hinder progress because methods to improve the process may be
uknown.
Reference
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic Management: Concepts &
Cases Competitiveness and Globalization (8th ed.). Mason, OH: South Western Cengage
Learning.
Pearce, J. A. II, & Robinson, R. B. (2009). Strategic management: Formulation, implementation,
and control (11th ed.). New York: McGraw-Hill.

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