Chapter 3: Strategic Analysis :

Internal Environment Internal environment

Includes
Introduction Understanding Role of Combining Competitive Michael Porter’s
Assessing the
to Internal Key Resources External and Advantage : Generic Strategies
current Using
Environment Stakeholders performance and Internal
Capabilities : Analysis Michael
of the
Building Core (SWOT Porter’s Cost
Who are business- people, stakeholders, defining an specific to each
Mendelow’s Strategic Competency Analysis) Generic leadership
Stakeholders Matrix Strategies processes, organization's identity. organisation.
Drivers
and how do infrastructure,
we identify Differentiatio administrative
them? Developing a n Strategy structure, and
Industry and
Grid of Customers Product/Services Channels organizational culture,
Markets
Stakeholders
Focus
Marketing
Stakeholders Analysing
strategies To
can move Industry and reach out to
between Markets customers. Best-Cost
quadrants Provider
Strategy

Understanding Key
Stakeholders Mendelow’s Matrix

Who are Stakeholders and how do Analyse

we identify them? Different power
Known as stakeholder For example,
groups and Interest

Stake and employees, Power to Clash of some

Influence level Interest Level also known as the
Success shareholders, influence objectives Mendelow a big competitor
Stakeholder stakeholders will a big shareholder
investors, suggests that one hold more Power would have high
suppliers, Analysis matrix should analyse
and the Power- than others power to impact
individuals and customers, power to Exerts a a clash of stakeholder strategy, but
entities that regulators and have differing Interest matrix
influence the different level of objectives may groups based on potentially less
have a stake in so on. influence levels of interest have some is likely to have
strategy or in the Interest in success
success of an performance of unfavourable stakeholders will high power and of rival
org organisation. have more high interest in
that consequences is a simple Power organisation.
organisation. for the Interest Interest than the organisation,
framework to
organisation. help manage key others
and can impact
stakeholders.
it as well.
(the ability to
influence (how interested
organisation they are in the
strategy or organisation
resources) and succeeding).

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 Categorisation of
stakeholders into four
groups by Mendelow

KEEP SATISFIED KEY PLAYERS LOW PRIORITY KEEP INFORMED

Stakeholders: Stakeholders Stakeholders Stakeholders

High power, less High power, highly Low power, less Low power, highly
interested people interested people interested people interested people

Put in enough work fully engage this group only monitor them adequately inform this
with these people to of stakeholders, with no actions to group of people and
keep them satisfied making the greatest satisfy their communicate with
with their intended efforts to satisfy them, expectations. them to ensure that no
information on a major issues arise.
regular basis.
take their advice, build minimal efforts, keep
actions and keep them an eye to check if their
levels of interest or This audiences can also
For example, banks, informed with all
information on a power change. help with real time
government, feedbacks and areas of
customers, etc. regular basis. improvement for an
organisation.
Assessing the current For example, business
performance of the For example, magazines, media
Stakeholders can move between quadrants business- Strategic Shareholders, CEO, houses, etc. For example,
Drivers Board of Directors, etc. employees, vendors,
suppliers, legal
experts, etc.
environment is highly dynamic and can cause important
stakeholders to suddenly move between The key strategic
aspect of
quadrants. internal drivers of an
analysis organisation
include:
For example, Regulatory breaches, like GST
non-compliance, shift stakeholder positions
For this we need to industry and
consider the strategic markets
Changes in the environment necessitate re- drivers that
analyzing Mendelow's grid to adapt stakeholder differentiates an
management and communication strategies organisation from its
competitors. customers

products/services

channels

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