1. WEEK 4 THE INTERNAL ASSESSMENT

2. Comprehensive Strategic Management Model (Internal Assessment/Audit)
External
Audit
Vision
&
Mission
Long-Term
Objectives
Generate,
Evaluate,
Select
Strategies
Implement
Strategies:
Mgmt Issues
Implement
Strategies:
Marketing,
Fin/Acct,
R&D, CIS
Measure &
Evaluate
Performance
Internal
Audit

3. Nature of Internal Audit
Key internal forces:
Management
Marketing
Finance/accounting
Production/operations
Research & Development
Management Information Systems

4. Nature of Internal Audit
The process of performing an internal audit
Closely parallels the process of performing an external audit
Involve representatives of managers and employees throughout a firm to identify strength and weaknesses
Require key factors as describe earlier
Provide more opportunities for participant to understand their jobs, department, divisions and organization
Excellence vehicle for communication process
Critical success factors – both strengths and weaknesses
Highly interactive process that require coordination from various activities
Fialure to understand the relationships among functional areas of business can be detrimental to strategic management

5. Resource Based View (RBV)
Approach to Competitive Advantage
Internal resources are more important than external factors in achieving competitive advantage

6. Resource Based View (RBV)
Three Categories important resources
Physical resources – plant & equipment
Human resources – all employees, experience, expertise, etc.
Organizational resources – firm structure, information system, patents, trademarks, etc.

7. Resource Based View (RBV)
Empirical Indicators
Rare
Hard to imitate
Not easily substitutable

8. 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 integration…is considered valid and taught to new members

9. Integrating Strategy & Culture
Values
Beliefs
Legends
Heroes
Rites
Cultural
Products
Symbols
Rituals
Myths

10. 15 examples aspects of an organizational culture
Strong work ethics
High ethical belief, clear code of business ethics
Formal dress – for formal activities
Informal dress – for casual activities
Socialize together outside work
Do not question supervisor’ decision
Encourage whistle-blowing
Be health conscious – have a wellness program
Allow substantial working from home
Encourage creativity/innovative
Support women and minorities
Be high socialize responsible
Have numerous meetings
Have a participative management
Preserve the natural environment

11. Strategic management – integration of various firm activities
Strength and weakness of an organization may be resulted from management activities
Management
Marketing
Finance/account
Production/operation
Research & Development
Management information system

12. 1. Management Basic functions of management
Description
Planning
Consists of all managerial activities related to preparing for future – forecasting, establishing objective, devising strategies, etc
Organizing
Include all managerial activities that results in a structure of task and authority relationship – organizational design, job specialization, job specification, etc
Motivating
Involves efforts directed toward shaping human behavior – leadership, communication, delegation of authority, employee morale
Staffing
Activities centered on personal or HR management – wage, salary administrative, employee benefit, etc
Controlling
Managerial activities directed toward ensuring that actual results are consistent with planned results – quality control, analysis of variances, rewards, sanctions

13. Stage When Most Important
Management
Stage When Most Important
Function
Planning
Strategy Formulation
Organizing
Strategy Implementation
Motivating
Strategy Implementation
Staffing
Strategy Implementation
Controlling
Strategy Evaluation

14. Some examples of strength and weakness of management function
Competent staff
Good leaders
High standard of work (ISO standard, TQM)
No clear work description
attractive compensation program
etc
Weaknesses
Un-skills staff
No enough staff
Poor leader
Low salary
No quality standard

15. 2. Marketing
Fulfilling customer Needs/Wants for Products/Services. Seven basic functions of marketing
Customer analysis
Selling product/services
Products/services planning
Pricing
Distribution
Marketing research
Opportunity analysis

16. Marketing Customer analysis
The examination and evaluation of customer needs, desire and wants
Involves administering customer survey, analyzing consumer information, evaluation market positioning strategies
Information – essential in developing mission statement

17. Marketing 2. Selling products/services 3. Product and service planning
Includes activities such as advertising, sales promotion, publicity, personal selling, customer relations
Critical when a firm pursuing a market penetration strategy
3. Product and service planning
Include activities such as test market, product and brand positioning, packaging, features, quality, etc
The most important – test market (allow company to test alternative marketing plans and forecast future sales of new product
Important for a company that persue product development or diversification strategy.

18. Marketing 4. Pricing 5. Distribution
5 factors that effect pricing decisions – consumers, government, suppliers, distributors and competitors
Eg: government impose on pricing fixing, minimum price, etc.
Should be consider for short and long-term perspectives
5. Distribution
Include activities such as warehousing, distribution channel, retail site location, transportation carriers
Important when a firm is striving to implement market development for forward integration startegy

19. Marketing 6. Market research 7. Cost-benefit analysis
Systematic gathering, recording and analyzing of data about problem related to marketing.
7. Cost-benefit analysis
Involve assessing the costs, benefits, risks associated with marketing decision
3 steps –
Compare the total costs associated with a decision
Estimate the total benefits
Compare the total costs and total benefits
If benefit exceed – more opportunities

20. Examples of strength and weakness of marketing functions
Global branding
Good promotion program
Good marketing research
Excellence distribution system
High quality of product
etc
Weakness
Poor branding
Poor marketing program
No marketing research
Low quality of product
Etc.

21. DISCUSSION
Compare two companies - Proton Holdings and Toyota motor. Identify five strength and weakness of both companies, compare and discuss
Indentify four major strength and weakness of UTHM. Rank each factors in term of importance