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Prompt: Tools for External Strategic Analysis
Most organizations understand the importance of an internal and external analysis of their organization. An external analysis is used to determine the opportunities and threats within the industry which will drive the profitability, growth, and volatility of the organization (Porter's Five Forces, Force Field Analysis, PESTLE Analysis). An internal analysis highlights the organization's strengths and weaknesses in relation to its competencies, resources, and competitive advantages (SWOT, Value Chain, Growth-Share Matrix, McKinsey Matrix). Once the internal and external analysis is complete, the organization should have a clear idea of where it is thriving, where it is surviving, and where there is a deficient so as to identify gaps and opportunities for improvement. Based on this, assess the importance of utilizing external strategic management tools like Porter's Five Forces, Force Field Analysis, and PEST (as well as any others you find in your research) for the strategic leader.
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