Internal Analysis Mtv

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CBL Case 2
Michiel Kemper
MSM3B
Tutor: R. Dikkeboom

Core issue:
Internal Analysis

Problem statement:
How can MTV optimise their value chain in order to stay competitive?

Learning goals:
1.What is an internal analysis?
2.What internal analysis models are there?
3.Apply on MTV
4.What is a business model?
5.What is MTV’s current business model?
6.What is a value chain?
7.What is MTV’s value chain?
8.What is the target group of MTV?

1.What is an internal analysis?
The goal of an internal analysis is to identify the strength and weaknesses of an organization. An internal analysis also focuses on reviewing the resources, capabilities, and competencies of a company. It gives managers a very specific look on what is going on within the company. For developing a strategy a company also have to do an external analysis to get to know more about their opportunities and threats (Hill & Jones, 2008).

By doing an internal analysis an organization receives information about certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the organization an advantage in meeting the needs of its target market. Any analysis of the strengths should be market customer focused because the strengths are only useful when they assist the organization in meeting the needs of the customer. Weaknesses refer to any limitation an organization faces in developing or eventually implementing a strategy. Weaknesses should also be based on the customer because they often perceive weaknesses that an organization is not able to find by themselves (Internal Analysis, N.D.).

As mentioned in the book of Hill & Jones there are three steps in the process of building up an internal analysis: 1. Managers must understand the process by which companies create value for customers and profit for themselves, and they also need the understand the importance of resources, capabilities and distinctive competencies in this process. 2. The managers need to understand the importance of superior efficiency, innovation, quality, and customer responsiveness. They also need to know how they are creating value and generating a high profitability for the company. 3. The managers must be able to analyse the sources of their organizational competitive advantages. This is important because they need to identify what is driving the profitability of their enterprise and which things they can improve (Hill & Jones, 2008).

The company Time Inc. revealed that while the company had strong well-known brands such as Fortune, Money, Sports Illustrated and People (strength), and strong reporting capabilities (strength), it suffered from a lack of editorial commitment to online publishing (a weakness).

2.What internal analysis models are there?
SWOT Analysis:
The SWOT Analysis is used to analyse the internal and external environment of an organization. You have to formulate the strengths of the organization. Which specific aspects differ the organization from other competitors? The strengths help to reach a goal of the organization and can be used to get a competitive advantage. The weaknesses are internal things that are blocking the way to success of the organization (SWOT analyse uitleg, N.D.).

McKinsey 7S Framework:
There are seven internal aspects of an organization that need to be aligned if it the organization wants to be successful. The 7S model can be used to improve the performance of the company, to examine the likely effects of future changes within a company, to align departments and processes during a merger or acquisition or to determine how they can implement a proposed strategy in the best way for example (The McKinsey 7S Framework, N.D.).

There are 7 interdependent factors which are categorized as hard and soft elements: Hard elements are easier to define and can be directly influenced by the management. Hard elements are: strategy, structure and...
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