Answer No (1)

INTRODUCTION
INTERNAL ANALYSIS:- An Internal Analysis is the evaluation of the key
internal features of an organization, it recognises and assesses resources, capabilities,
and core competencies. Internal analysis has four elements such as the organisation's
Vision, Mission, Strategic objectives and Strategies.

Internal Analysis is performed because it is the only way to identify an organization's

strengths and weaknesses it's needed for making good strategic decisions. In order to
start the strategic management process, managers are required to conduct an internal
analysis.
There are four major areas which need to be considered for internal analysis:
1. The organization's resources, capabilities.

2. The way in which the organization configures and co-ordinates its key value-adding
activities.

3. The structure of the organization and the features of its culture.

4. The performance of the organization as measured by the strength of its products.

CONCEPTS & APPLICATION

For doing Internal Analysis of Derma Boss following techniques
will be undertaken:-

TECHNIQUES OF INTERNAL ANALYSIS:-

a) VRIO FRAME WORK:- VRIO Analysis is an analytical and a brilliant
technique to evaluate the company’s resources and capabilities that result in
the competitive advantage.
The VRIO framework is an internal analysis tool, used by organizations to categorize
their resources based on whether they hold certain traits outlined in the framework. This
categorization then allows organizations to identify the company resources that are
competitive advantages.

There are four dimensions that make up the framework, which create the acronym
VRIO:

 Valuable :-When a resource is valuable, it's providing the organization with

some sort of benefit. However, a resource that is valuable and doesn't fit into any
of the other dimensions of the framework, is not a competitive advantage. An
organization can only achieve competitive parity with a resource that is valuable
and neither rare nor hard to imitate.

 Rare :- A resource that is uncommon and not possessed by most organizations

is rare. When a resource is both valuable and rare, you have a resource that
gives you a competitive advantage. The competitive advantage achieved from a
resource that is both valuable and rare is usually short lived though. Competitors
will quickly realize and can imitate the resource without too much trouble.
Therefore it's only a temporary competitive advantage.

 Inimitable:-Resources are hard to imitate if they are extremely expensive for

another organization to acquire them. A resource may also be hard for an
organization to imitate if it is protected by legal means, such as patents or
trademarks. Resources are considered a competitive advantage if they are
 valuable, rare, and hard to imitate. However, organizations that are not organized
to fully take advantage of the resource, may mean the resource is an unused
competitive advantage.

 Organized:- An organization's resource is organized to capture value only if it

is supported by the processes, structure and culture of the company. A resource
that is valuable, rare, hard to imitate and organized to capture value is a long
term competitive advantage. A resource cannot confer any advantage for a
company if it is not organized to capture the value. Only a firm that is capable to
exploit the valuable, rare and imitable resources can achieve sustained
competitive advantage.

b) VALUE CHAIN ANALYSIS

The value chain approach was developed by Michael Porter , Value chain analysis is a
process of dividing various activities of the business in primary and support activities
and analyzing them, keeping in mind, their contribution towards value creation to the
final product. And to do so, inputs consumed by the activity and outputs generated are
studied, so as to decrease costs and increase differentiation.

Value chain analysis is used as a tool for identifying activities, within and around the
firm and relating these activities to an assessment of competitive strength.
.

The different value chain activities can be briefly described as follows:

i. Primary Activities:
a. Inbound Logistics:-Inbound logistics cover all the activities performed to have
goods and services available for the operational processes as and when they will be
required. This may include buying, transport, inspection, storage, etc.

b. Operations:- These are the operations the organisation performs to convert its
raw materials or products into a state for resale.
c. Outbound Logistics:- These are the activities performed to move
merchandise between the seller and the purchaser. They may include selection,
scheduling, transport, etc.
d. Marketing:- This includes all the activities performed to create demand for the
organization’s products and services and includes advertising, sales, market research,
etc.
e. Services :- It pertains to the services rendered to the customer. These include
financing services such as financing the outstanding balance, or after-sales service to
products, or services to handle customer queries and complaints, etc.

 ii. Support Activities:

a. Infrastructure:-This consists of the management structure which services the
whole organization as well as structures such as reception, general postal services,
messengers, financial accounting and other general activities.

b. Human Resources Management:-This is the basic activity of overseeing

the acquisition, maintenance and severance of staff and principally services the primary
activities.

c. Technology Development:-Technology development helps a business

innovate and it can be used in various steps of the value chain to gain an advantage
over competitors by increasing efficiency or decreasing production costs.

d. Procurement:-The procurement activity services the organization as a whole by

acquiring all necessary goods and services which the organization may require.

CONCLUSION
The prime objective of any business organization is to increase the profit by utilizing of
limited resources. Therefore, the decision-makers in business entities are under
tremendous pressure to formulate proper business strategies in order to achieve
organizational goals and objectives.
Therefore, as discussed, managers utilize techniques such as VRIO Framework and
Value Chain Analysis to analyze the internal environment of DermaBoss. Therefore,
once managers identified those internal factors which could influence the success of a
business company in future, assumptions can be made with regard to the future
development of those factors and subsequently a viable strategy could be formed
accordingly.

It can be assumed that the proper utilization of internal analysis tools such as Value
Chain Analysis or VRIO Framework, will surely enable the managers or the decision-
makers of the Pharma Care Enterprises to identify internal factors properly and to
assess their impacts and to develop an appropriate strategy to mitigate and/or to take
advantage of them to make the business sustainable and profitable .

Answer No (2)

INTRODUCTION
All businesses and organisations operate in a changing world and are subject to forces
which are more powerful than they are, and which are beyond their control. Just as a
ship at sea is subject to powerful natural forces of which it needs to be aware and deal
with, organisations are influenced by forces in their external business environment.
Any business strategy needs to take account of all these forces so that opportunities
and threats can be identified and the organisation can navigate its way to success by
matching its internal strengths to external opportunities.

As business becomes more competitive, and there are rapid changes in the external
environment, information from external environment adds crucial elements to the
effectiveness of long-term plans. As environment is dynamic, it becomes essential to
identify competitors’ moves and actions by performing external analysis. Organizations
have also to update the core competencies and internal environment as per external
environment. Environmental factors are infinite, hence, organization should be agile and
vigile to accept and adjust to the environmental changes.

CONCEPTS & APPLICATION

EXTERNAL ANALYSIS:-
 a) Meaning:- External environmental analysis or evaluation is a process
through which strategic planner (entrepreneur) evaluates economic, social,
political, legal, technological and market conditions to determine the opportunities
and threats for their enterprise and according to which he adjusts his strategy
and objectives. The primary purpose of external analysis is to determine the
opportunities and threats in an industry or any segment that will drive profitability,
growth, and volatility.

b) Features of External Environmental Analysis

1. Continuous Process
External environment analysis is a continuing process because till an entrepreneur will
not keep the continuous watch on the changes happening in the environment, he will
not be able to have knowledge about the threats and challenges.

2. Determination of Opportunities and Challenges

External environmental analysis is the opportunity and threat analysis, ‘meaning thereby
that the external environmental analysis provides the opportunity to the entrepreneur
that presently the circumstances are favorable and hence decision may be taken quickly
and may be implemented also, so that profit may be earned.
On the contrary, the external environmental analysis may also pose the threat that the
circumstances are not favorable and hence caution and care be exercised, otherwise,
losses may occur.

3. Inner Knowledge Process

External environmental analysis is a process through which environmental conditions
are known on the one side, knowledge is also gained about future possibilities and
hidden opportunities.

As a result, the decision making and making adjustments of strategies and objectives,
by the entrepreneur become easy.

4.Goal Orientations
Through external environmental analysis, the entrepreneur makes efforts to know the
future possibilities and their real effects or makes efforts to achieve his goal by
searching business opportunity with the help of external environmental analysis.

c) Need for External Analysis

1. Success of Entrepreneurship
For the success of an enterprise, advance evaluation of the far-reaching favorable
effects and ill effects of the external environment and its factors is necessary.

If such advance evaluation provides some specific knowledge, the entrepreneur gets
alert about them and tries to adjust his decisions, accordingly.

2 To Create Measures for Competitive Environment

The competitive environment is also an essential part of the total environment, which
cannot be left unseen.

Hence, it is essential for the entrepreneur that he should study and analyze the external
environmental factors, so as to work out measures against the strategies of their
competitors and to adopt counter Strategies.

Thus, external environmental analysis is necessary for working out strong measures
against the competitors.
3 Leadership of Market
External environmental analysis is also required because through it the entrepreneur
get knowledge about new products and new services available in the market, fashion,
likings of the consumers, new techniques of production and methods, etc.

With the use of such knowledge, the entrepreneur may increase his sales by efficiently
leading the market, which will surely result in good profits to him.

d) Approaches to External Analysis

1. Systematic approach
In this approach, we first collect the information in systematic way. This information is
collected from market, customers and government organisations.

2. Ad- hoc approach

In ad hoc approach, organisation can survey of special environment issues. These
survey will be done, if any new project will be made or has to analyze the current
policies.

3. Processed Form Approach

 
If any organisation uses the secondary sources of information, then that approaches will
be processed form approach to environment scanning.

SCENARIO PLANNING:- Scenario planning or scenario thinking is a

strategic planning tool used to make flexible long-term plans. It is a method for learning
about the future by understanding the nature and impact of the most uncertain and
important driving forces affecting our world.

The method is based on creating a series of ‘different futures’ generated from a

combination of known factors, such as demographics, with plausible alternative political,
economic, social, technical, legal and environmental (PESTLE) trends which are key
driving forces. The goal is to craft diverging worlds by extrapolating these heavily-
influencing driving forces. The technique can also include anticipatory thinking elements
that are difficult to formalise, such as subjective interpretations of facts, shifts in values,
new regulations or inventions.

It is a group process which encourages knowledge exchange and development of

mutual deeper understanding of central issues important to the future of your
organisation. Although the method is most widely used as a strategic management tool,
it can also be used for enabling other types of group discussion about a common future.

The thought processes involved in getting to the scenarios have the dual purpose of
increasing knowledge of the environment in which you operate and widening the
participant’s perception of possible future events encouraging them to ‘think the
unthinkable’

CONCLUSION
The external environment plays a critical role in shaping the future of entire industries
and those of individual businesses. To keep the business ahead of the competition,
managers must continually adjust their strategies to reflect the environment in which
their businesses operate.

It is a useful exercise to do an external analysis at the start of the strategy review

process. Gather your team together to do a PEST analysis. After the analysis, you will
get an overview of the environment that your business is in, the factors that may affect
it, and the issues that require attention in the strategy. The PEST analysis is merely a
checklist to ensure that you have analysed the salient factors. It is a great help to guide
the group through the initial analysis. When the team gets an accurate picture at the
beginning of the strategic process, it will lead them to adopt a successful strategy .

Answer No (3)

INTRODUCTION
(a) ORGANISATION:-A set-up where individuals from diverse backgrounds,
different educational qualifications and varied interests come together to work
towards a common goal is called an organisation. It is a social system wherein its
members try to achieve their private goals while achieving the organizational goals.
An organisation for business purposes is commonly known as a corporate body or
a corporation or a company or formally established business unit. It is dynamic and
ever changing as per the needs of society, its members, corporate objectives and
environmental changes. Men form and develop organisations because they are
unable to achieve the desired goals individually. They evolve different forms of
 organisations according to their needs. An organisation is a composition of people
having different authorities and responsibilities to utilize existing resources for
achieving the organisational objectives.

CONCEPTS & APPLICATION

FEATURES OF AN ORGANISATION:-
Division of Work:-Organisation includes breaking up the entire work into
different segments. Different segments of work are then assigned to different persons
for their efficient accomplishment. This brings in division of labour. It is not that one
person cannot carry out many functions but specialization in different activities is
necessary to improve one’s efficiency.

Common Objectives:-All organisational structure is a means towards the

achievement of enterprise goals. The goals of various segments lead to the
achievement of major business goals. The organisational structure should build around
common and clear cut objectives. This will help in their proper accomplishment.

Team Work:-Group behaviour has given birth to team work which has been
accepted as the most effective form of organisation. Team spirit, team performance,
team rewards and team motivation have achieved new dimensions in big organisations.
They can achieve something more together than what they can achieve individually.

Continuity:-As the organisation involves people, and the people generate different
needs, they can leave the organisation or some may die too. This does not affect the
organization to stop or decrease in size. Hence, it is said that every organization has its
own continuity. A good manager can leave but other better man can take over the
charge of the organisation.

Well-Defined Authority-Responsibility Relationships:-An

organisation consists of various positions arranged in a hierarchy with well defined
authority and responsibility. There is always a central authority from which a chain of
authority relationship stretches throughout the organisation. The hierarchy of positions
defines the lines of communication and pattern of relationships.
CONCLUSION
Organisation is a tool of efficient management. It is the mechanism through which the
manager directs co-ordinates and controls the business affairs. It is, indeed, the
foundation of business and, as such, it provides a means by which human efforts are
properly directed to more and more productive, effective and fruitful results.

Organisation is a means by which the problems of the enterprise connected with

policies, operations, and administration can efficiently be solved. Sound organisation
can contribute greatly to the success and continuity of the enterprise.

Sound organisation is quite essential for every enterprise. Organised thoughts have
always been the basis of organised actions. Without sound organisation, no
management can manage the various operations of the enterprise. Obviously, the better
the organisation, the fuller would be the achievement of the common objectives and
similarly, loose organisation of an enterprise implies a dangerous state of affairs.

INTRODUCTION
(b) 7 S FRAMEWORK:- The McKinsey 7S Model is a framework for
organizational effectiveness that postulates that there are seven internal factors of an
organization that need to be aligned and reinforced in order for it to be successful. In the
7S Framework the so-called hard and soft elements are incorporated, in which hard
elements aim at matters an organization can influence directly. The soft elements are
present in an organization in a more abstract way and can be found in the
organizational culture. The hard elements in the 7S Framework are Strategy, Structure
and Systems; the soft elements are Style, Shared Values, Skills and Staff. Each of
these elements it vital to your success, yet each needs its own time and attention to
function properly. Only when these separate parts of your organization are able to come
together can you be confident that you are on the right path.

CONCEPTS & APPLICATION

 Elements of 7-S Framework are explained as fallows:-

The Hard Elements

1) System:- System means the operations of a company. Here, it is thought

out which processes and tasks are needed to be able to deliver the products
or services.
2) Strategy:- Strategy actually means the company's future plans. With
strategy it is important that clear choices are made (focus). The ultimate goal
of strategy must be that you gain a competitive advantage over your
competitors.
3) Structure:- Structure is often visualized in the form of an organisational
chart or other document that outlines who reports to whom. This structure
could deal in terms of the whole organisation, or simply a department within
the company, such as the accounting department.
The Soft Elements
1)Shared Values:- Shared values are about the corporate culture that prevails
within the company. The shared values of an organisation should stretch to all
employees, to create a feeling of cohesiveness. 

2)Style:- It represents the way the company is managed by top-level managers, how
they interact, what actions do they take and their symbolic value. In other words, it is the
management style of company’s leaders.

3) Staff:- This element is concerned with what type and how many employees an
organisation will need and how they will be recruited, trained, motivated and rewarded.

4) Skills :- Skills are the abilities that firm’s employees perform very well. They also
include capabilities and competences.

CONCLUSION
Working through the McKinsey 7-S Framework is a great way to gain an overall
understanding of your business and what it is capable of achieving. By having
clear organizational goals in place, and then using this framework to understand
where you are headed, it should be possible to make adjustments as necessary
to steer the business in the right direction. Success doesn’t happen by accident
in the real world it happens through hard work, careful planning, and a
commitment to reaching the ultimate objective of the organization.