Internal And Internal Analysis: Opportunities And Threats

Opportunities and Threats The second and third components of the strategic planning process include performing an internal and external analysis in determining organizations strengths and weaknesses, as well as their opportunities and threats; these link to the next section of strategic planning and is commonly referred to as a SWOT analysis. As illustrated by Hill, Jones, & Schilling (2014), to assist organizations in choosing future strategies, they can perform a SWOT analysis to determine its strengths; weaknesses, opportunities and threats (p. 17). Hill, Jones, & Schilling (2014) not that, in order to determine future strategies, it is important an organization perform this analysis to “build on and protect company strengths, and eradicate
“Internal analysis, the third component of the strategic planning process, focuses on reviewing the resources, capabilities, and competencies of a company” (Hill, et al., 2014, p. 17). The internal analysis is a three step process which identifies the organization’s strengths and weaknesses. As remarked by Hill, Jones, & Schilling (2014), managers must first understand the process of value and profit creation, as well as the role of resources, capabilities, and distinct competencies (p. 82). Second they must understand how to create that value and profitability. As Hill, Jones, & Schilling (2014) remarked, “they need to understand the importance of superior efficiency, innovation, quality, and customer responsiveness when creating value and generating high profitability” (p. 82). Lastly, an internal analysis must show the sources of drivers in attaining competitive advantage and profitability and how to improve upon
“Online shopping and purchasing is made easy with a user-friendly interface, product recommendations, customer wish lists, and a one-click purchasing option for repeat customers” (Hill et al., 2014, p. 116). In addition to increasing the efficiency of its online experience, Amazon is now working to use robots in its distribution centers with their purchase of Kiva. “Kiva has announced that for the next 2 to 3 years, it will not take any external orders, and instead focus on automating Amazon’s distribution centers” (Hill et al., 2014, p. 117). Instead of employees walking miles and miles and picking product of the shelves, Kiva will do it for