ABSTRACT

This chapter discusses an internal analysis along seven dimensions: performance, strategy, strategic priorities, cost, portfolio, financial resources, and strengths/ weaknesses. It compares four basic organizational alternatives: functional, geographic, product management, and market. The chapter illustrates how one company conducted a self-examination through internal analysis to help shape its strategies and redirect activities during an industry turndown. It explores how a small company focuses on its strategic priorities as it survives in an industry driven by high technology and ruled by competitive giants. Portfolio analysis takes place in an organizational unit, such as a division, strategic business unit, or in most small businesses. It helps one assess their competitive position systematically in order to determine investment levels. The three popular portfolio models include the BCG GrowthShare Matrix, the General Electric Business Screen, and the Arthur D. Little Matrix.