Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal...
-
Upload
emery-obrien -
Category
Documents
-
view
214 -
download
1
Transcript of Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal...
![Page 1: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/1.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -1
Chapter 4 The Internal Assessment
Strategic Management: Concepts & Cases
13th Edition
Fred David
![Page 2: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/2.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -2
![Page 3: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/3.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -3
“Great spirits have always encountered violent opposition from mediocre minds.” – Albert Einstein
Internal Assessment
“Weak leadership can wreck the soundest strategy.” – Sun Tzu
![Page 4: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/4.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -4
Internal Audit
Identify strengths and weaknesses in Management Marketing Finance and accounting Production and operations Research and development Management information systems
![Page 5: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/5.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -5
Internal strengths/weaknesses External opportunities/threats Clear statement of mission
Nature of an Internal Audit
Basis for Objectives & Strategies
![Page 6: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/6.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -6
Key Internal Forces
Distinctive Competencies:
Firm’s strengths that cannot be easily matched or imitated by competitors
![Page 7: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/7.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -7
Key Internal Forces
Distinctive Competencies:
Building competitive advantage involves taking advantage of distinctive competencies
![Page 8: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/8.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -8
Internal Audit Process
Information gathered from:Management
Marketing
Finance/accounting
Production/operations
Research & development
Management information systems
Parallels process of external audit
![Page 9: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/9.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -9
Internal Audit
Involvement in performing an internal strategic-management audit provides a vehicle for understanding the nature and effect of decisions in other functional business areas of the firm
![Page 10: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/10.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -10
![Page 11: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/11.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -11
Internal Audit
Managers and employees from all areas provide information
A team of managers then selects 10 to 15 key organizational strengths and weaknesses to focus on
![Page 12: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/12.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -12
Internal Audit
Exemplifies complexity of relationships among functional areas of the business
Financial Ratio Analysis
![Page 13: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/13.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -13
Resource Based View (RBV)
Approach to Competitive Advantage
Internal resources are more important than external factors
![Page 14: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/14.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -14
Resource Based View (RBV)
Three All-Encompassing Categories
1. Physical resources
2. Human resources
3. Organizational resources
![Page 15: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/15.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -15
Resource Based View (RBV)
Empirical Indicators
Rare
Hard to imitate
Not easily substitutable
![Page 16: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/16.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -16
Integrating Strategy & Culture
Pattern of behavior developed by an organization as it learns to cope with its problem of external adaptation and internal integration . . . is considered valid and taught to new members as the correct way to perceive, think, and feel
Organizational Culture
![Page 17: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/17.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -17
Integrating Strategy & Culture
Organizational Culture
Resistant to change
May represent:
Strength
Weakness
![Page 18: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/18.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -18
CulturalProducts
Values
Legends Beliefs
Heroes Rites
Symbols RitualsMyths
Integrating Strategy & Culture
![Page 19: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/19.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -19
Integrating Strategy & Culture
Organizational Culture Can Inhibit Strategic Management
Miss external changes due to strongly held beliefs
Natural tendency to “hold the course” even during times of strategic change
![Page 20: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/20.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -20
Management
Functions of Management
1. Planning
2. Organizing
3. Motivating
4. Staffing
5. Controlling
![Page 21: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/21.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -21
Management
Planning
Stage When Most ImportantFunction
Strategy Formulation
Organizing Strategy Implementation
Motivating Strategy Implementation
Staffing
Controlling
Strategy Implementation
Strategy Evaluation
![Page 22: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/22.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -22
Management
Planning
Beginning of management process
Bridge between present & future
Improves likelihood of attaining desired results
![Page 23: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/23.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -23
Planning
Developing a mission
Forecasting future events and trends
Establishing objectives
Choosing strategies to pursue
Management
![Page 24: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/24.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -24
Planning
Synergy Can develop through planning Exists when everyone pulls
together as a team that knows what it wants to achieve
![Page 25: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/25.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -25
Management
Organizing
Achieves coordinated effort
Defines task & authority relationships
Determines who does what
Determines who reports to whom
![Page 26: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/26.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -26
Management
Organizing Breaking down tasks into jobs Combining jobs to form
departments Delegating authority
![Page 27: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/27.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -27
Management
Motivating
Influencing to accomplish specific objectives
Four components include:
Leadership
Group dynamics
Communication
Organizational change
![Page 28: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/28.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -28
Management
Staffing
Personnel management
Human resource management
![Page 29: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/29.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -29
ManagementStaffing Recruiting Interviewing Testing Selecting Orienting Training Developing Caring for
Evaluating Rewarding Disciplining Promoting Transferring Demoting Dismissing
![Page 30: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/30.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -30
Management
Controlling
Establishing performance standards
Ensure actual operations conform to planned operations
Taking corrective actions
![Page 31: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/31.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -31
Management
Controlling
1. Establish performance standards
2. Measure individual and organizational performance
3. Compare actual performance to planned performance standards
4. Take corrective action
![Page 32: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/32.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -32
Management Audit Checklist
Does the firm use strategic management concepts?
Are objectives/goals measurable? Well communicated?
Do managers at all levels plan effectively?
![Page 33: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/33.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -33
Management Audit Checklist
Do managers delegate well? Is the organization’s structure
appropriate? Are job descriptions clear? Are job specifications clear? Is employee morale high?
![Page 34: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/34.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -34
Management Audit Checklist
Is employee absenteeism low? Is employee turnover low? Are the reward mechanisms effective? Are the organization’s control
mechanisms effective?
![Page 35: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/35.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -35
Marketing
Customer Needs or Wants for Products and Services
1. Defining
2. Anticipating
3. Creating
4. Fulfilling
![Page 36: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/36.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -36
Marketing
Marketing Functions
1. Customer analysis
2. Selling products/services
3. Product & service planning
4. Pricing
5. Distribution
6. Marketing research
7. Opportunity analysis
![Page 37: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/37.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -37
Customer Analysis
Customer surveys
Consumer information
Market positioning strategies
Customer profiles
Market segmentation strategies
Marketing
![Page 38: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/38.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -38
AdvertisingSales Promotion
PublicityPersonal Selling
Sales force managementCustomer relations
Dealer relations
Marketing
Selling Products/Services
![Page 39: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/39.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -39
![Page 40: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/40.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -40
Test marketingBrand positioning
Devising warrantiesPackaging
Product features/optionsProduct style
QualityDeleting old products
Providing for customer service
Marketing
Product/Service Planning
![Page 41: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/41.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -41
ConsumersGovernments
SuppliersDistributorsCompetitors
Marketing
Pricing
Major Stakeholders
![Page 42: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/42.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -42
WarehousingDistribution channelsRetail site locations
Sales territoriesInventory levelsTransportationWholesaling
Retailing
Marketing
Distribution
![Page 43: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/43.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -43
Gather data
Record data
Analyze data
Marketing
Marketing Research
![Page 44: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/44.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -44
Assessing costs
Assessing benefits
Assessing risks
Marketing
Cost/Benefit Analysis
![Page 45: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/45.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -45
Marketing Audit
1. Are markets segmented effectively?
2. Is the organization positioned well among competitors?
3. Has the firm’s market share been increasing?
4. Are the distribution channels reliable & cost effective?
5. Is the sales force effective?
![Page 46: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/46.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -46
Marketing Audit
6. Does the firm conduct market research?
7. Are product quality & customer service good?
8. Are the firm’s products and services priced appropriately?
9. Does the firm have effective promotion, advertising, and publicity strategies?
![Page 47: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/47.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -47
Marketing Audit
10.Are the marketing, planning, and budgeting effective?
11.Do the firm’s marketing managers have adequate experience and training?
12. Is the firm’s Internet presence excellent as compared to rivals?
![Page 48: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/48.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -48
Finance/Accounting
1. Investment decision (Capital budgeting)
2. Financing decision
3. Dividend decision
![Page 49: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/49.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -49
Firm’s ability to meet its short-term obligations
Ratios
Current ratioQuick (or acid test) ratio
Basic Financial Ratios
Liquidity Ratios
![Page 50: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/50.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -50
Extent of debt financing
Ratios
Debt-to-total assetsDebt-to-equity
Long-term debt-to-equityTimes-interest-earned
Basic Financial Ratios
Leverage Ratios
![Page 51: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/51.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -51
Effective use of firm’s resources
Ratios
Inventory turnoverFixed assets turnoverTotal assets turnover
Accounts receivable turnoverAverage collection period
Basic Financial Ratios
Activity Ratios
![Page 52: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/52.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -52
Effectiveness shown by returns on sales and
investment
Ratios
Gross profit marginOperating profit margin
Net profit marginReturn on total assets (ROA)
Basic Financial Ratios
Profitability Ratios
![Page 53: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/53.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -53
Effectiveness shown by returns on sales &
investment
Ratios
Return on stockholders’ equity (ROE)
Earnings per sharePrice-earnings ratio
Basic Financial Ratios
Profitability Ratios(cont’d)
![Page 54: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/54.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -54
Firm’s ability to maintain economic
position
Ratios
SalesNet Income
Earnings per shareDividends per share
Basic Financial Ratios
Growth Ratios
![Page 55: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/55.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -55
Ratio
Sales
Net Income
Earnings per share
Dividends per share
Annual percentage growth in
Total sales
Profits
EPS
Dividends per share
Growth Ratios
![Page 56: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/56.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -56
![Page 57: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/57.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -57
![Page 58: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/58.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -58
![Page 59: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/59.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -59
![Page 60: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/60.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -60
Finance/Accounting Audit
1. Where is the firm financially strong/weak as indicated by financial ratio analysis?
2. Can the firm raise needed short-term capital?
3. Can the firm raise needed long-term capital through debt and/or equity?
4. Does the firm have sufficient working capital?
5. Are capital budgeting procedures effective?
![Page 61: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/61.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -61
Finance/Accounting Audit
6. Are dividend payout policies reasonable?
7. Does the firm have good relations with its investors and stockholders?
8. Are the firm’s financial managers experienced and well trained?
9. Is the firm’s debt situation excellent?
![Page 62: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/62.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -62
Production/Operations
Production/Operations Functions
Process
Capacity
Inventory
Workforce
Quality
![Page 63: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/63.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -63
![Page 64: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/64.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -64
Production/Operations Audit
•Are suppliers of materials, parts, etc. reliable and reasonable?•Are facilities, equipment, machinery, and offices in good condition?•Are inventory-control policies and procedures effective?
•Are suppliers of materials, parts, etc. reliable and reasonable?•Are facilities, equipment, machinery, and offices in good condition?•Are inventory-control policies and procedures effective?
![Page 65: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/65.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -65
Production/Operations Audit
•Are quality-control policies & procedures effective?•Are facilities, resources, and markets strategically located?•Does the firm have technological competencies?
•Are quality-control policies & procedures effective?•Are facilities, resources, and markets strategically located?•Does the firm have technological competencies?
![Page 66: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/66.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -66
Research & Development
Research & Development Functions
Development of new products before competitors
Improving product quality
Improving manufacturing processes to reduce costs
These functions can be done internally or externally
![Page 67: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/67.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -67
Financing as many projects as possible
Use percent-of-sales method
Budgeting relative to competitors
How many successful new products are
needed
Research & Development
R&D Budgets
![Page 68: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/68.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -68
Research & Development Audit
•Are the R&D facilities adequate?•If R&D is outsourced, is it cost-effective?•Are the R&D personnel well qualified?•Are R&D resources allocated effectively?
•Are the R&D facilities adequate?•If R&D is outsourced, is it cost-effective?•Are the R&D personnel well qualified?•Are R&D resources allocated effectively?
![Page 69: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/69.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -69
Research & Development Audit
•Are MIS and computer systems adequate?•Is communication between R&D and other organizational units effective?•Are present products technologically competitive?
•Are MIS and computer systems adequate?•Is communication between R&D and other organizational units effective?•Are present products technologically competitive?
![Page 70: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/70.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -70
Management Information Systems
Purpose
Improve performance of an enterprise by improving the quality of managerial decisions
![Page 71: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/71.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -71
Management Information Systems Audit Do all managers use the information system
to make decisions? Is there a CIO or Director of Information
Systems position in the firm? Are data updated regularly? Do managers from all functional areas
contribute input to the information system? Are there effective passwords for entry into
the firm’s information system?
![Page 72: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/72.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -72
Management Information Systems Audit Are strategists of the firm familiar with the
information systems of rival firms? Is the information system user-friendly? Do all users understand the competitive
advantages that information can provide? Are computer training workshops provided for
users? Is the firm’s system being improved?
![Page 73: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/73.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -73
Value Chain Analysis
The process whereby a firm determines the costs associated with: Purchasing raw materials Manufacturing products Marketing products
And compares them to the value chain of rival firms
![Page 74: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/74.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -74
Value Chain Analysis
Core competencies
Distinctive competencies
Benchmarking
![Page 75: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/75.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -75
Transforming Value Chain Activities into Sustained Competitive Advantage
Value Chain
Activities Are
Identified and
Assessed
Value Chain
Activities Are
Identified and
Assessed
Core Competencies Arise in Some
Activities
Core Competencies Arise in Some
Activities
Some Core Competencies
Evolve into Distinctive
Competencies
Some Core Competencies
Evolve into Distinctive
Competencies
Some Distinctive
Competencies Yield
Sustained Competitive Advantages
Some Distinctive
Competencies Yield
Sustained Competitive Advantages
![Page 76: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/76.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -76
Internal Factor Evaluation (IFE) Matrix
1. List key internal factors
2. Assign a weight ranging from 0.0 to 1.0
3. Assign a 1 to 4 rating to each factor
4. Multiply the weight times the rating
5. Sum the weighted scores
![Page 77: Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 4 -1 Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 13.](https://reader038.fdocuments.in/reader038/viewer/2022110206/56649f445503460f94c64e31/html5/thumbnails/77.jpg)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Ch 4 -77
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.