Business Studies
Discussion must be in current APA format and must include a reference list. Reference sample make sure to include DOI-Drollinger, T., Comer, L. B., & Warrington, P. T. (2006). Development and validation of the active empathetic listening scale. Psychology & Marketing, 23(2), 161-180. https://doi.org/10.1002/mar.20105 There needs to be 2 scholarly references (2017-2022) and 1 biblical references from the King James bible in the paper Minimum of 275 words in the body Minimum of 2 sources from the literature in addition to course texts Current APA format must be used. Content must include: • Summary of the author’s Thread – no less than 150 words • What you agreed with, did not agree with and why – no less than 125 words • Support your factual assertions with citations.
Discussion to Reply to:
Introduction
When it comes to external and internal environments, there are crucial factors that determine organizations’ competitive factors when dealing with the marketplace. Because of that, there are factors that must be overseen when organizations make company decisions due to it having a chance to affect their success in the short and long term. Organizations need to know and under their strengths, weakness, and how well the company’s strategy is working so that it will give them the opportunity to explore possibilities in the competitive market. Some of the opportunities could be explored through the SWOT analysis and with certain strategic tools it will allow them to manage the growth of the company even with times of uncertainty.
Process: Internal Environment Evaluation
When dealing with organizations, they must gain the knowledge of their capabilities and use their resources so that they can get information on how to capitalize on competitive advantage. Sometimes, it will be basic information that will help them gain the most advantages over their competitors. One of the questions organizations need to know is if the companies’ resources and capabilities are competitive. The resource in the organization determines the capabilities of the organization in that way they can understand the strengths of their resources and it will help them with managing their competitive advantage. With internal strategy, it is based on the resources that are available to the company and it will also have a determination of the company’s growth and success. Internal environment influences the way the organization interacts with the employees and managers of the company because it makes them interact and share ideas, opportunities and that will give people the chance to take charge (Nuwagaba, 2018). Internal environments give employees motivation which in the end could help with the future of the business. Motivation can lead to profit and growth and when they are both attractive, problems are not likely to be effective. Organizations are viewed as a group of resources and abilities that can be used as an approach to strategically formulate a competitive advantage. If the company can gain competitive advantage, companies should let it be known where they have the advantage at so that it will help uncover what their competitors’ weaknesses are that way they can avoid leading with their own (Rumelt, 2017).
Strategic Thinking
With the internal environment, organizations can determine their strengths and weaknesses based on their success in the market. Internal strategies have a major influence on organizations by how they are formulated and applied. Because of these factors that are internal in the organization can be a strength or weakness depending on the impact they have in the market, and it will sometimes start with the impact of the competitive advantage (Tresna, 2017). One of the primary sources of power for any organization is to guarantee the internal strategy is made to fit the organization, that way it will fit in with the culture of the company. One of the biggest motivating factors is the fact that corporate culture is becoming a more popular consideration and development (Alton, 2017). Culture is something that cannot be reproduced by competitors and because of that, when it is used in the correct strategy, it can become a reliable source of power and give an organization the competitive advantage they need (Rumelt, 2011). Internal strategies can affect the way bargaining power and internal strengths are evaluated depending on the organization in the competitive market. The organization’s value will play a key role in the organization’s competitive strategy (Gamble et al., 2019). A company can face a weakness if they use a strategy that does not fit their company’s internal environment. Companies can have everything they need for a competitive advantage, but if it is not utilized in the correct manner, it will hurt the organization instead of building it up. It is important for companies to communicate their plans with the rest of the organization so that everyone can be of one accord.
Decision Model
When it comes to organizations, for them to be successful in the business world, they need to have an understanding and comprehension of the internal environment before they decide for the company on which strategy to use. Internal environment is based off more than success and for organizations to succeed they would need a strategy that would help them figure out the development and operations of the company (Gleim et al., 2018). Without the correct strategy the organization will not be able to capitalize on their competitive advantage. The most known strategy to use in this situation would be the SWOT analysis because it is a key tool that will help the organization to know the opportunities they have based on the strengths and weaknesses of their organization. With that being said, the SWOT analysis would help the organization with their results because it leads to formulating a strategy based on strengths and weaknesses that are discovered while doing the analysis. The VRIN test would be perfect due to it being used for sustainable competitive advantage, it can be used to see if resources or capabilities are valuable, rare, inimitable, and non-substitutable. There are four tests that are ran and with the first two tests, it can figure out whether the resource or capability may contribute to a competitive advantage. The last two tests determine the degree to which the competitive advantage potential can be sustained (Gamble et at., 2019). Now, if the organization were to combine the VRIN and SWOT analysis, it would give adequate results on internal structures for the organization. The model will give the company the direction they need to add value and give them the best chances to have competitive advantages.
Conclusion
While doing this discussion, it is clear to see the importance of competitive advantage when it comes to working in an organization. Competitive advantages are determined by how well a company performs. For a company to perform well they must incorporate a strategy that is well formulated and implemented correctly. That will also give the company the best chances to have a high performance and growth rate for years to come. The internal environment will help a company to decide which strategy would best fit their needs and depending on how well it fits in with the company it will give them the competitive advantage they need. Organizations need to look over the SWOT analysis to gain a better understanding of their position in the market so that it will help the organization to determine what strategy to pursue for the best chances of market growth through competitive strategies.
ANSWER
Discussion Reply 2 770-Anthony
I agree with the post that evaluating the internal environment enables an organization to understand the external forces influencing its operations. Assessing an organization’s external and internal environment requires the management to have a clear strategy to understand their value chain, compare the performance indicators of their rivals, and other significant factors that help them make decisions about a follow-up strategy. While assessing the internal environment, a company assesses its financial performance, strengths, capabilities, resources, and market power.
I concur with the post that evaluating the internal environment requires good scrutiny of the core competencies, capabilities, strategic direction, brand infrastructure, relative costs, and leadership. Ideally, these indicate the value chain that creates a product’s consumer value. Additionally, the internal factors play a major role in supporting the supply chain management activities and support activities of technology, product development, general administrative expenses, and human resource management (Shatilo, 2019). This is done by identifying the strengths and opportunities to capitalize on and weaknesses and threats that need to be addressed to improve organizational performance.
Strategic thinking entails fully examining all circumstances that may lead to the weakness or strength of an organization (Nuntamanop, Kauranen, and Igel, 2013). During strategic thinking, the management considers the operation data and market information to have a holistic approach while evaluating the internal environment.
Think outside the box and choice overload are effective decision models. Thinking outside the box brings about a different approach in decision making since the decision makers consider doing things differently and ensuring the best approach is chosen. Choice overload focuses on eliminating impossible solutions and ideas to screen out for the best strategy. I agree with the post that the consequence model is also worth considering since it promotes bold decision-making. This focuses on eliminating the risk rather than lowering it to an acceptable level. Evaluating the internal environment allows an organization to identify the strengths, weaknesses, opportunities, and threats, thus effectively deciding what approaches can improve their performance.
References
Halmaghi, E. E., Iancu, D., & Băcilă, M. L. (2017, June). The organization’s internal environment and its importance in the organization’s development. In International Conference Knowledge-Based Organization (Vol. 23, No. 1, pp. 378-381). http://dx.doi.org/10.1515/kbo-2017-0062
Nuntamanop, P., Kauranen, I., & Igel, B. (2013). A new model of strategic thinking competency. Journal of Strategy and Management. https://doi.org/10.1108/JSMA-10-2012-0052
Shatilo, O. (2019). The impact of external and internal factors on strategic management of innovation processes at the company level. Ekonomika, 98(2), 85-96. https://doi.org/10.15388/Ekon.2019.2.6
