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Why it important for a firm to study and understand its internal organization?

It is crucial for a firm to analyze its internal organization to identify the strengths and weakness. Particularly, the organization assesses its internal resources, competencies and competitive advantages. Understanding how the firm can leverage its unique resources both tangible and intangible is a key outcome when analyzing internal organization of a firm. The strategic value of resources is dependent on how much it imparts the firm’s competencies. Core competencies distinguishes a firm from its competitors as it takes advantage of its resources and capabilities. As a result, the firm adds unique value to its services overtime. In addition to avoiding conflicts within the firm especially when implementing important decisions. Hence, making better decisions than their competitors who will find it hard to imitate.  Internal organization analysis gives the firm knowledge to exploit its opportunities and strengths. Besides, allowing it to devise strategies to counteract potential threats and compensate for identified weaknesses.