Describe the internal capabilities of the firm and carry out a VRIO analysis.

Must be structured with the following section headings:

1 External Environment: Analyse the external environment of the firm. Describe how changes in the macro environment of the firm (use PESTEL analysis) affect the five forces(supplier power, buyer power, competitive rivalry, threat of substitution, threat of new entry) analysis. How does this shape the firm s opportunities and threats?

2 Internal Analysis: Describe the internal capabilities of the firm and carry out a VRIO analysis. Explain where the firm s is able to create a sustainable competitive advantage and for which resources and capabilities this advantage is missing.

3 Business Strategy: What is the firm s business level strategy and how well does this fit with the firm s internal capabilities and environmental opportunities/threats?

4 Corporate Strategy: What is the firm s corporate level strategy and how well does this fit with the firm s internal capabilities and environmental opportunities/threats?

5 Recommendations: What are your recommendations to the firm? Explain your answer drawing conclusions from your above analysis.