chapter 4 the internal assessment.ppt

Upload: mohsin-nisar-bajwa

Post on 17-Oct-2015

480 views

Category:

Documents


24 download

DESCRIPTION

STRATIGIC MANEGMENT HELP FULL MATIRIAL

TRANSCRIPT

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Chapter 4 The Internal Assessment

    Strategic Management: Concepts & Cases13th EditionFred David

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Internal AuditIdentify strengths and weaknesses inManagementMarketingFinance and accountingProduction and operationsResearch and developmentManagement information systems

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Key Internal ForcesDistinctive Competencies:Firms strengths that cannot be easily matched or imitated by competitors

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Key Internal ForcesDistinctive Competencies:Building competitive advantage involves taking advantage of distinctive competencies

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Internal Audit ProcessInformation gathered from:ManagementMarketingFinance/accountingProduction/operationsResearch & developmentManagement information systemsParallels process of external audit

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Internal AuditInvolvement 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

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Internal AuditManagers and employees from all areas provide informationA team of managers then selects 10 to 15 key organizational strengths and weaknesses to focus on

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Internal AuditExemplifies complexity of relationships among functional areas of the businessFinancial Ratio Analysis

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Resource Based View (RBV)Three All-Encompassing CategoriesPhysical resourcesHuman resourcesOrganizational resources

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Resource Based View (RBV)Empirical IndicatorsRareHard to imitateNot easily substitutable

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Integrating Strategy & CulturePattern 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 feelOrganizational Culture

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Integrating Strategy & CultureOrganizational CultureResistant to changeMay represent:StrengthWeakness

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Integrating Strategy & CultureOrganizational Culture Can Inhibit Strategic ManagementMiss external changes due to strongly held beliefsNatural tendency to hold the course even during times of strategic change

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*ManagementFunctions of ManagementPlanningOrganizingMotivatingStaffingControlling

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*ManagementPlanningStage When Most ImportantFunctionStrategy FormulationOrganizingStrategy ImplementationMotivatingStrategy ImplementationStaffingControllingStrategy ImplementationStrategy Evaluation

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*PlanningSynergyCan develop through planningExists when everyone pulls together as a team that knows what it wants to achieve

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Management Audit Checklist

    Does the firm use strategic management concepts?Are objectives/goals measurable? Well communicated?Do managers at all levels plan effectively?

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Management Audit Checklist

    Do managers delegate well?Is the organizations structure appropriate?Are job descriptions clear?Are job specifications clear?Is employee morale high?

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Management Audit Checklist

    Is employee absenteeism low?Is employee turnover low?Are the reward mechanisms effective?Are the organizations control mechanisms effective?

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*MarketingCustomer Needs or Wants for Products and ServicesDefiningAnticipatingCreatingFulfilling

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Finance/AccountingInvestment decision (Capital budgeting)Financing decisionDividend decision

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Finance/Accounting AuditWhere is the firm financially strong/weak as indicated by financial ratio analysis?Can the firm raise needed short-term capital?Can the firm raise needed long-term capital through debt and/or equity?Does the firm have sufficient working capital?Are capital budgeting procedures effective?

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Finance/Accounting AuditAre dividend payout policies reasonable?Does the firm have good relations with its investors and stockholders?Are the firms financial managers experienced and well trained?Is the firms debt situation excellent?

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Production/OperationsProduction/Operations FunctionsProcessCapacityInventoryWorkforceQuality

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Research & DevelopmentResearch & Development FunctionsDevelopment of new products before competitorsImproving product qualityImproving manufacturing processes to reduce costsThese functions can be done internally or externally

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Management Information SystemsPurposeImprove performance of an enterprise by improving the quality of managerial decisions

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Value Chain AnalysisThe process whereby a firm determines the costs associated with: Purchasing raw materials Manufacturing productsMarketing products And compares them to the value chain of rival firms

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Value Chain AnalysisCore competencies

    Distinctive competencies

    Benchmarking

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Transforming Value Chain Activities into Sustained Competitive AdvantageValue Chain Activities Are Identified and AssessedCore Competencies Arise in Some ActivitiesSome Core Competencies Evolve into Distinctive CompetenciesSome Distinctive Competencies Yield Sustained Competitive Advantages

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

  • Copyright 2011 Pearson Education, Inc. Publishing as Prentice HallCh 4 -*Internal Factor Evaluation (IFE) MatrixList key internal factorsAssign a weight ranging from 0.0 to 1.0Assign a 1 to 4 rating to each factorMultiply the weight times the ratingSum the weighted scores

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

    ********************