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This week focuses on internal capabilities and resources

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This week focuses on internal capabilities and resources.

• Discuss how a company's internal environment might affect the development of the corporate strategy.
• Include product life cycle, personnel, and organizational structure in your discussion as these components must receive consideration for success of any strategy.

 Below is an example answer has given to help.

Understanding a companies internal environment is an essential component for management in establishing a successful strategy. An organizational evaluation of the internal and external environments is a "basis for deciding on a long-term direction and developing a strategic vision" (Thompson, 2020, p.49). As part of the processes to determining critical long-term competitive advantages, management can evaluate the internal environment utilizing "resource and capability analysis" (Thompson, 2020, p.96). 

 

An intangible resource of an organization is the personnel. A skill assessment of the employees is critical in understanding the capabilities to execute a strategy. The immediate skill sets, experience, and knowledge may be identified as an area requiring development through training and recruitment if a competitive advantage is to be established. The development and training of employees require a consistent and ongoing program to match organizational development and achieve strategic goals.

The development of employee skills and the potential need for external hires has the potential to correlate with the product life cycle. The capability to adapt to industry change through the product life cycle is a critical strategy component to sustaining a competitive advantage and profitability. As the industry has "new developments and emerging trends" (Thompson, 2020, p.70), management needs to have a strategy for adapting products to adjust to meet these changes or introduce new products.

The organizational structure should be considered as part of the internal environment for the development of a strategy. The organizational structure needs to be matched with the appropriately skilled personnel for a successful strategy to be implemented. As companies grow, there are likely changes to the organizational structure; as an example, a start-up in the take-off life cycle stage will be more likely to have a simple structure with a central executive executing "all major decisions and oversees the operations" (Thompson, 2020, p.309). As a company grows, the complexity and levels of the hierarchy have the potential to increase. The management strategy needs to consider the best fit for the organizational structure to support the strategic goals and sustained operational success.

Reference:

Thompson Jr, Arthur. Crafting and Executing Strategy: Concepts. McGraw-Hill Higher Education. Kindle Edition.