Complete a VRIO or Value Chain analysis, a PESTLE analysis, and a Five Forces model for an organization. Prepare a 3-6-page executive report that analyzes the internal and external environments of the organization and recommends a course of action based on the analysis.
You are a strategic analyst for the company you have selected to use in this course. The company has recently started the strategic planning process and needs to analyze the current internal and external environments.
To complete this assessment, be sure you understand the AFI framework as presented in your text. Conduct your own research to find recent articles on the value of strategic planning and the role of leadership in the strategic planning process. (Note that the Strategic Management Process Map on pages 30 and 31 of the course text will be very helpful in completing this assessment.)
For this assessment, you will need to complete a VRIO or Value Chain analysis, a PESTLE analysis based on research of the organization (not conjecture or opinion), and a Five Forces model (pay attention to the relationships of elements from both PESTLE and Five Forces). These must be included as appendices in the document you submit. You should also research the industry your company is in, as well as the company’s website for information and supporting evidence. Once you have this research completed, prepare an executive briefing report that will be distributed to senior executive leadership. In your report, address the following:
Analyze the key components of the AFI strategic planning framework. Assess the value of using a strategic planning framework for long-term success and sustained competitive advantage.
Analyze the internal environment of the organization.
What are the key findings from your VRIO or Value Chain analysis?
How well does the organization leverage its strengths to execute the business strategy?
How effective is the organizational structure and management system design?
Analyze the external environment of the organization.
What are the key findings from your PESTLE analysis?
What are the key findings from your Five Forces analysis?
How can the organization respond to these forces to better position itself?
Explain the role of leadership in the strategic planning process. Be sure to address the ethical responsibilities of leaders in the strategic planning process.
Recommend a course of action for leadership based on your analysis.
The following resources provide a thorough examination of PESTLE and Five Forces:
tutor2u. (2016). PESTLE analysis [Video]. | Transcript https://www.youtube.com/watch?v=sP2sDw5waEU
Harvard Business Review. (2008). The five competitive forces that shape strategy [Video]. | Transcript https://www.youtube.com/watch?v=mYF2_FBCvXw&list=PLoGhzQgdhGJws7SPKJqIY8FnzGm-QCcLj&index=1
Rothaermel, F. (2021). Strategic management (5th ed.). McGraw-Hill. Available in the courseroom via the VitalSource Bookshelf link.
Chapter 3, “External Analysis.”
The following resources explain VRIO and Value Chain models:
Barney, J., & The Middle Ground. (2009). Resource based view of the firm by Jay Barney [Video]. | Transcript https://www.youtube.com/watch?v=-KN81_oYl1s
Business-to-You. (2016). VRIO: From firm resources to competitive advantage. https://www.business-to-you.com/vrio-from-firm-resources-to-competitive-advantage/
Van Vliet, V. (n.d.). Porter’s value chain analysis. https://www.toolshero.com/management/value-chain-analysis-porter/
The following resources are somewhat old, but the information is still relevant and the authors are considered to be leading authorities on the topic.
Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91.
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179-191.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99.
This article is considered to be the seminal work on VRIO.
Rothaermel, F. (2021). Strategic management (5th ed.). McGraw-Hill. Available in the courseroom via the VitalSource Bookshelf link.
Chapter 4, “Internal Analysis.”
The VRIO Framework, page 128.
