It is important that a company conducts a detailed Analysis of the Internal Opportunities and Threats. It helps put stakeholders at ease when there is a better understanding to the risks involved. Next the business should conduct an analysis of its Internals Strengths and Weaknesses. Management must assess strengths and weaknesses in major functional areas inside the business so see if they have the right resources and core competencies to be successful. Usually, organizations conduct the following analysis.
1. Financial 2. Marketing Audit 3. Operations 4. Other Internal Resources such as R&D, MIS, Engineering and Purchasing 5. Human Resource Assessment
After conducting the analysis of internal strengths and weaknesses the company should conduct a SWOT Analysis and Strategy Formulation. A SWOT Analysis is where a company summarizes important facts from their external and internal analysis. This helps to identify primary and secondary strategic issues that the company faces in their mission or vision. After the SWOT Analysis, it is time for the management team to implement the Strategy efficiently and effectively. It is important to stress how crucial a successful implementation needs to be. Defining strategic tasks by expressing in simple terms what the business is attempting to do to created a competitive advantage, assessing the organizations capabilities by determining if it can implement the tasks, developing an implementation agenda by having managers decide its activities and procedures and what skill sets and individuals will be needed in critical roles, as well creating an implementation plan that can be deployed and monitored will help to ensure a smooth roll out. Lastly, maintaining Strategic Control will help managers in evaluating organization progress with its new strategy and how to take corrective action when the plan goes off course. Strategic Control must allow for adaptability to changing conditions where performance indicators, information systems and other mechanisms monitor the progress. Remember the system must be both efficient and flexible. The most successful organizations can adapt to the changing market, and maintain position under budgetary thresholds through strategic management.