"Compare and evaluate the relative merits of the environment and the strategic capability approaches to analysing a firm's strategic position".

In the current arena, every business has the desire to perform better than the competitors
so as to maintain its positive in the market. For example, universities and colleges compete for

the best students, new ventures compete for the human and financial capital, existing ones strive
for the growth, employees compete for promotions, politicians compete for vote, charities targets
the contributions, etc. Thus, in every situation the winner is one who adopts the better strategy
than that of the other. Thus, the term “Strategy” can be defined as the planned set of actions, so
as to achieve the goals.
The strategic position of any organization is concerned with the impact of internal
resources, external environment, competences, expectation of stakeholders, etc. Thus, it can be
said that various internal and external forces provides the basis for analyzing the strategic
position of the organization. Moreover, the strategies need to be such that it can easily adapt
changes in accordance with the changing environment. In order to evaluate the strategic position
of the organization, three aspects needs to be focused, namely, external environment,
organization’s strategic capability which includes its competences and resources, and cultural
and ethical values. Evaluation of strategic position involves the study of the linkages of these
three above listed aspects, whereby, how do these changes with the span of time and how it helps
in creating the value for the organization. Thus, it depends on the ability of the company as to
how effectively it is using the knowledge to develop the strategy which helps in making its
position in the competitive environment and implementing it in the most effective form.
Prior to 1990s, the external environment was held responsible in evaluating the strategic
position, and later the internal environment or the...