INTERNAL ANALYSIS
Internal analysis identifies the strengths and weaknesses of the organization for formulating strategies. Policies, plans, resources, competencies and objectives are considered as the factors for internal analysis. There are so many tools to conduct internal analysis, they are: GAP analysis, Strategy Evaluation, and OCAT.
GAP ANALYSIS
This tool is mainly used to identify or to evaluate the performance. It also finds the present situation of the organization and also the future of the organization, and identifies the gap between the both situations and builds actions which will bridge to avoid the gaps.
Pro’s
- It helps to give a complete overview of the company for the purpose of decision
- It analyzes every department of the organization like accounts, sales, purchase etc..
- It also helps the top level management to review whether the resources of departments meets the missions, goals and objectives of the
Con’s
- Gap analysis took more time and cost for the analysis.
- This analysis is done with help of a consultant, so the charge of the consultant is very big and also the consultant also needs the employees for his help, it reduces the amount of manpower.
- There is a chance to get wrong information due the consultant is an outsider
STRATEGY EVALUATION
Strategy evaluation identifies the outcomes or performance of the organization according to the implemented strategy and it helps management to evaluate the strategy or to take a new strategy if it fails.
Pro’s
It helps to evaluate the strategy. Also regains the forbidden challenges that the organization affected in the market. It also helps to derive the strategy in an extreme way.
Con’s
In this tool it evaluates the strategy on the bases of quantitative and qualitative elements because of that there is a chance to get failed on the point of fractions.
OCAT
The Organizational Capacity Assessment Tool (OCAT) is also a tool used to do internal analysis but this tool is mainly used by non-profit organizations. OCAT is assessed by using 10 internal dimensions:
- Strategy.
- Funding.
- Aspiration.
- Advocacy.
- Business Processes.
- Leadership, Board & Staff.
- Infrastructure & Organizational Structure.
- Innovation & Adaptation.
- Culture & Shared.
- Marketing & Communications.
Pro’s
Can make involvement of every employee in the assessment. Also gets opinions from the internet due to this assessment is completely done with the help of the internet.
Con’s
This process cannot specify the problems on the system. The analysis is completely done with help of the internet and the internet should be faster and all the employees have to give authority to access the administration.
McKinsey 7S Framework
McKinsey 7S framework is a highly popular tested tool for assessing the organization. It is used to improve the alignment between the processes and departments. It is also used to understand the current state of organization and also the future of organization to understand the gap between them. McKinsey7S analysis 7 internal factors of organization which should be well aligned. The 7’s factors are:
- Staff
- Skills
- Structure
- Shared Values
- Styles
- Systems
- Strategy
ADVANTAGES
- It helps to merge various processes and departments with each
- It helps to facilitate systematic application of strategies, policies and regulations which are framed by the top level management.
- This model is derived through practical testing and application.
- This model helps the management to analyze the effects of change in strategies, technology, change in corporate culture, policies and structure.
- It helps to align components of organization to achieve the organizational objectives.
DISADVANTAGES
- It cannot be used for a short term assessment due to that it cannot be analyzed
- This model does not consider external factors.
- Degree of suitability of this model to the organization cannot be evaluated.
- There will not be a proper conclusion.
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