1. Internal Analysis- assess CVS's strengths and weaknesses through a value chain. Doing a value chain analysis is very important to the Strategic Management Analysis.

Finding and understanding Resources, Capabilities, and Core Competencies is part 2 of the internal analysis.

For the purpose of preparing a written presentation- it is important to note that strengths are internal resources and capabilities that have the potential to be core competencies.

Weakness is the internal resources and capabilities that have the potential to place a firm at a competitive disadvantage with its rivals.

When evaluating the internal characteristics of the firm, your analysis of the functional activities emphasized is critical; for example, if the firm's strategy is primarily technology-driven, then you have to evaluate the firm's research and development. If the strategy is market-driven, you must look at the marketing activities.

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