The 3 Levels of Programming Language

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Chapter 4
Internal Scanning Organizational Analysis
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Chapter Objectives

• After finish this chapter student will able
• how to scanning internal environment
• to assess organization capability with Business
  function analysis, Core competency analysis and
  Value chain analysis.
• use SWOT analysis to develop strategy.

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Nature of an Internal Audit

• -Besides watching External Environment (Chapter
  3) the companies should examine the
  competitiveness and performance of the firm
  operations.
• Basis for objectives and strategies
• -Understand Internal strengths and weaknesses
• -Understand External opportunities and threats
• -a Clear statement of mission

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Key Internal Forces- Core competency analysis

• Distinctive Competencies
• -A firms strengths that cannot be easily
  matched or imitated by competitors.
• -Building competitive advantage involves taking
  advantage of distinctive competences.
• -Strategies designed in part to improve on a
  firms weaknesses and turn to strengths.

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Key Internal Forces- Business function analysis

• Functional business areas
• -Vary by organization
• -Divisions have differing strengths and
  weaknesses
• Similar to process of external audit. Gather and
  assimilate information from
• -Management/Marketing
• -Finance/accounting
• -Production/operations
• -Research and development
• -Management information systems.

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• Involvement in performing an internal
  strategic-management audit provides vehicle for
  understanding nature and effect of decisions in
  other functional business areas of the firm.
• key to organizational success
• - Coordination and understanding among
• managers from all functional areas

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Functions of management
Stage When Most Important
Function
Planning
Strategy Formulation
Organizing
Strategy Implementation
Motivating
Strategy Implementation
Staffing
Strategy Implementation
Controlling
Strategy Evaluation
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Functions of Marketing

• Process of defining, anticipating, creating, and
  fulfilling customers needs and wants for
  products and services
• Customer analysis
• Selling products/services
• Product and service planning
• Pricing
• Distribution
• Marketing research
• Opportunity analysis

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Functions of Finance/Accounting

• Determining financial strengths and weaknesses
  key to strategy formulation
• Investment decision (Capital budgeting)
• Financing decision
• Dividend decision

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Functions of Production/Operation

• Process
• Capacity
• Inventory
• Workforce
• Quality

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Functions of Research and Development

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

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Functions of Management Information Systems

• Purpose
• Improve performance of an enterprise by improving
  the quality of managerial decisions.
• Information Systems
• Security
• User-friendly
• E-commerce

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Key Internal Forces- Porters Value Chain

• Value chain analysis is a systematic tool to
  analyze the interaction among all activities a
  firm performs.
• This concept divides a companys activities in to
  2 main activities (5 primary and 4 support
  activities).

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SWOT analysis

• is a tool to classify the environment affecting
  the organization. it identifies internal and
  external factors whether they are favorable and
  unfavorable.
• SWOT come from
• Strength- organizations strong points.
• Weakness- organizations weak points
• Opportunities- events support org.
• Threats are unfavorable situation.

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Advantage Disadvantage
Internal Environment Strength Weakness
External Environment Opportunities Threats
Strategic actions Competitiveness Improvement, Protection
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Group discussion

• Break class into group
• Do SWOT analysis on BBU BM