In the business environment, it is important for organizations to look at their competitors and aim to be better than them. An Inside Out strategy looks at what their strengths and weaknesses are, once identified the organization will then manufacture the products and attempt to market them well (CMA, 2012). While the Outside In strategy considers customer value as the starting and ending point, placing emphasis on the external environment when thinking strategically (Brandmatters, 2010). Strategy looks at issues that may concern the future of organizations, as well as preparing for or resolving these issues, as a number of strategies can be used to identify them. This essay will define the Inside Out and the Outside In of organizations. In particular, the different strategic theories and concepts will be examined using organizational examples to explain how Inside Out and Outside In will explain organizational success. An organization's external factors could be brought to the forefront when thinking strategically, looking at the bigger picture, including their competitors and customers. The PESTEL analysis framework can be used to identify the external macro environment of an organization. Issues related to political, economic, social, technological, environmental and legal environments can be the main factors affecting organizations (Johnson G et al, 2011). Managers of an organization should carefully analyze their environment as this could help an organization anticipate any future threats, take action and minimize threats before they can affect the business. An example is the brewing companies of Western Europe, where legal laws such as drink driving have affected large supermarket chains like...... middle of paper ...... are not only the purchase of a product or service but also benefits (European Business Review, 2008). By using an Inside Out strategy, products and services meet the requirements needed to compete with competitors and sell to customers. However, they do not examine how external environmental factors may affect consumers or how their needs change, which affects the products or services they need. For a company to be successful, it should consider making major contributions within the strategy-making process rather than within it (Harvard Business Review, 1996). As the Outside In strategy shows, organizations must have a broad view of their external macro-environment and be able to adapt to changing environments. This will save them from any future problems, although some managers may be more concerned about their current success and what is happening today..