Chapter 4 The Internal Assessment

1
Chapter 4 The Internal Assessment
The person who figures out how to harness the
collective genius of his or her organization is
going to blow the competition away. (Walter
Wriston)
2
Nature of an Internal Audit
Basis for Objectives Strategies

• Internal strengths/weaknesses
• External opportunities/threats
• Clear statement of mission

3
Internal Audit
Parallels process of external audit

• Information from
• Management
• Marketing
• Finance/accounting
• Production/operations
• Research Development
• Management Information Systems

4
Resource Based View (RBV)
Approach to Competitive Advantage
Internal resources are more important than
external factors
5
Resource Based View (RBV)
Three All Encompassing Categories

• Physical resources
• Human resources
• Organizational resources

6
Integrating Strategy Culture
Organizational Culture
Pattern of behavior developed by an organization
as it learns to cope with its problem of external
adaptation and internal integrationis considered
valid and taught to new members
7
Integrating Strategy Culture
Values
Beliefs
Legends
Heroes
Rites
Cultural Products
Symbols
Rituals
Myths
8
Management
Stage When Most Important
Function
Planning
Strategy Formulation
Organizing
Strategy Implementation
Motivating
Strategy Implementation
Staffing
Strategy Implementation
Controlling
Strategy Evaluation
9
Marketing
Customer Needs/Wants for Products/Services

• Defining
• Anticipating
• Creating
• Fulfilling

10
Marketing
Marketing Functions

• Customer analysis
• Selling products/services
• Product service planning
• Pricing
• Distribution
• Marketing research
• Opportunity analysis

11
Finance/Accounting
Finance/Accounting Functions

• Investment decision (Capital budgeting)
• Financing decision
• Dividend decision
• Financial analysis Key financial ratios

12
Production/Operations
Production/Operations Functions

• Process
• Capacity
• Inventory
• Workforce
• Quality

13
Research Development
Research Development Functions

• Development of new products before competitors
• Improving product quality
• Improving manufacturing processes to reduce costs

14
Management Information Systems

• Information Systems
• CIO/CTO
• Security
• User-friendly
• E-commerce