GSM Lecture 4

Management > Global Strategic Management > Internal environment

Internal environment

Referring to the firm itself, the internal environment includes:

• Resources, capabilities and core competences (or distinctive capabilities)
• Value chain analysis
• Organisational structure and culture
• Performance analysis

To construct an effective corporate strategy it is essential to gain a full understanding of the firm's strengths and weaknesses. It is important to understand the firm's assets, how effectively they are being utilised, the structure of the firm and the corporate culture.

Resources and capabilities

Distinctive capabilities

Value chain

Value chain illustrated

Value system

System configurations

More configurations

Other considerations

Corporate culture and structure

Performance analysis