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CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment

Meera Auto Ltd. wants to compare its present performance with its own past results and with the industry leader, to find its strengths and weaknesses. Which approach to analysing internal capabilities is this?

This is benchmarking combined with historical analysis. Comparing current results with the firm's own past and with the industry leader reveals internal strengths and weaknesses. PESTEL and Porter's five forces examine the external environment, while scenario planning explores possible futures.

  1. ABenchmarking and historical analysisCorrect
  2. BScenario planning
  3. CPESTEL analysis
  4. DPorter's five forces analysis

Explanation

Comparing against own past performance is historical analysis, and comparing with the best in the industry is benchmarking; both are methods of internal appraisal. PESTEL and five forces analyse the external environment, and scenario planning builds future-oriented pictures.

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