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CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment

Which analysis of internal environment breaks a firm's operations into primary and support activities to identify where it creates competitive advantage?

Value chain analysis is the tool. It splits a firm's operations into primary and support activities so management can see where value and cost advantage arise. PESTEL, scenario planning and industry life-cycle analysis examine external conditions or future possibilities rather than internal activities.

  1. AValue chain analysisCorrect
  2. BPESTEL analysis
  3. CScenario planning
  4. DIndustry life-cycle analysis

Explanation

Value chain analysis, associated with Porter, divides activities into primary (inbound logistics, operations, outbound logistics, marketing and sales, service) and support activities (procurement, technology, HR, infrastructure). PESTEL and life-cycle analysis are external, and scenario planning explores possible futures.

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