The Internal Organization, Essay Example

Internal organizational analysis should start with assessing the company’s resources needed for its operation. The resources can help the company create competencies that can help developing competitive advantage.

A global mind-set is essential to approaching internal analysis of the company. New markets and entrants of the market competition can come from outside the local or national region. Capabilities to enter and win the competition need to be measured in a global market.

The process of discovering core competencies has two major aspects: value chain analysis and sustainable advantages, having the characteristics of: valuable, rare, costly to imitate and “nonsubstitutible”. Strategic competitiveness leads to competitive advantage, and the discovery of the company’s core competencies. The main steps towards internal organizational change to create competitive advantages involve creating value (for customers), resulting in above-the average results.

Challenges arise when operations management decisions have to be made. Managerial decisions can be affected by uncertainty, complexity of the market or plan and intraorganizational conflicts. There are several internal and external conditions that shape the firm; its competitive environment and market position. Market research and external analysis can support decisions made based on the organization’s internal assessment.

Resources can be tangible or intangible and create capabilities within the firm. These capabilities can help completing organizational tasks to create value for customers and achieve above-average return. Competencies created can help developing the core competencies within the company (the most valuable and profitable ones) that give the organization a strategic focus. Value chain activities need to be reviewed in order to ensure that the highest possible level of customer value is created by the organization.