Performing an external and internal analysis

A response to the statement below please, no more than 170 words and a internet reference if needed. The importance of performing an external and internal analysis in crafting corporate strategy. In today’s fast, turbulence, and rapid technological advancement, the predictability of the business environment become challenging. These changes which are uncontrollable by the business imposes significant influence on the strategic formulation. PESTLE analysis enables executives or business leaders to identify and understand these external factors, appreciate the business impact and develop strategies to handle those changes. A review of the SWOT analysis of Under Armour, Inc, the case study exercise for this session gave me a professional insight into the company’s area of strength to capitalized and area of weakness which needs to be improved. Another takeaway from this session is the critical role core competencies and value chain analysis play in strategic formulation. From my point of view, core competencies can easily enable a firm to pursue a differentiation strategy as opposed to valve chain analysis that might lead to the pursuit of cost leadership strategy.

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