Ch 4 -1 Copyright 2007 Prentice Hall Chapter 4 The Internal Assessment Strategic Management: Concepts & Cases 11 th Edition Fred David

Ch 4 -2 Copyright 2007 Prentice Hall Internal strengths/weaknesses External opportunities/threats Clear statement of mission Nature of an Internal Audit Basis for Objectives & Strategies

Ch 4 -3 Copyright 2007 Prentice Hall Internal Audit Information from: Management Marketing Finance/accounting Production/operations Research & Development Management Information Systems Parallels process of external audit

Ch 4 -4 Copyright 2007 Prentice Hall Resource Based View (RBV) Approach to Competitive Advantage Internal resources are more important than external factors

Ch 4 -5 Copyright 2007 Prentice Hall Resource Based View (RBV) Three All Encompassing Categories 1. Physical resources 2. Human resources 3. Organizational resources

Ch 4 -6 Copyright 2007 Prentice Hall Resource Based View (RBV) Empirical Indicators  Rare  Hard to imitate  Not easily substitutable

Ch 4 -7 Copyright 2007 Prentice Hall 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 Organizational Culture

Ch 4 -8 Copyright 2007 Prentice Hall Cultural Products Values Legends Beliefs HeroesRites SymbolsRituals Myths Integrating Strategy & Culture

Ch 4 -9 Copyright 2007 Prentice Hall Management Planning Stage When Most Important Function Strategy Formulation Organizing Strategy Implementation Motivating Strategy Implementation Staffing Controlling Strategy Implementation Strategy Evaluation

Ch Copyright 2007 Prentice Hall Marketing Customer Needs/Wants for Products/Services 1. Defining 2. Anticipating 3. Creating 4. Fulfilling

Ch Copyright 2007 Prentice Hall Marketing Marketing Functions 1. Customer analysis 2. Selling products/services 3. Product & service planning 4. Pricing 5. Distribution 6. Marketing research 7. Opportunity analysis

Ch Copyright 2007 Prentice Hall Finance/Accounting Finance/Accounting Functions 1. Investment decision (Capital budgeting) 2. Financing decision 3. Dividend decision 4. Financial analysis – Key financial ratios

Ch Copyright 2007 Prentice Hall Production/Operations Production/Operations Functions  Process  Capacity  Inventory  Workforce  Quality

Ch Copyright 2007 Prentice Hall Research & Development Research & Development Functions  Development of new products before competitors  Improving product quality  Improving manufacturing processes to reduce costs

Ch Copyright 2007 Prentice Hall Management Information Systems Information Systems CIO/CTO Security User-friendly E-commerce

Ch Copyright 2007 Prentice Hall

Ch Copyright 2007 Prentice Hall