strama leg ma - template chapter 5 as of december 10.docx

8/9/2019 Strama Leg Ma - Template Chapter 5 as of December 10.docx

1/15

Chapter 5

INTERNAL ANALYSIS

A. Management

B. Marketing

C. Finance and Accounting

. !roduction" # $peration"

E. Re"earch and e%e&opment

E. Management In'ormation S("tem

F. Summar( o' Interna& Ana&("i"

). Li"t o' Strength" and *eak Identi+ed

,. Summar( o' -e( Strength" and *eakne""e"

E T A I L S

Chapter 5

INTERNAL ANALYSIS

Introductory Paragraph for Chapter 5. Note that Internal Analysis of the

company is based on the 6 functional areas of business, namely

Management, Marketing, inance and Accounting, Productions!"perations,

#esearch and $e%elopment and Management Information &ystems. 'here(ill be subareas (ithin each function. &tudent should also e)plain here the

nature and process of performing an internal audit and analy*ing the internal

forces +check pages - to -/0. 12 minimum 3 sentences4


2/15

In the functional area on Productions ! "perations, the analysis (ill use

"perations Audit based on the 'en "perations Management $ecision by

ei*er and #ender.

In this chapter, the student may use the #esource7ased 8ie( +#780

approach (herein internal resources (ere analy*ed in order for a 9rm to

achie%e and sustain the competiti%e ad%antage.

A. Management

Importance, de9nition and principles of Management: ;mphasi*e ho( this

functional area is diuestions?

in page 3 of 'e)tbook. It is discretion or it is option of the student, if he!she

(ant to discuss other necessary subareas to be considered +check p. 3@ 2

3 or 'able 3 in te)tbook0: Narrati%e discussions +or lay do(n data and

information0 and e)planations +in paragraph form0 depends on the depth of

the situation. 12 number of sentences depends on the uality of the analysis4

'he student may also discuss here the issues on Culture +page -B to - of

the te)tbook0

After discussion of this Management function and its subareas, ;8ADEA'I"N

(ill proceed. In the e%aluation, the student must de%elop a conclusion or

deduce a trend or assess the impact to the company. In this ;%aluation, it is

important to identify either one strength factor or one (eakness factor.

In the identi9cation of one strength or one (eakness, the student may usethe concept of #esource7ased 8ie( +#780 in (hich the presence or absence

of resource and capabilities are being e%aluated relati%e to the functional

area. o(e%er, it is also possible to identify both one or more strength

factors and one or more (eakness factors in each function, but this is

optional.


3/15

B. Marketing

Importance, de9nition and principles of Marketing: ;mphasi*e ho( this

functional area is diuestions? in page

3B of 'e)tbook. It is discretion or it is option of the student, if he!she (ant to

discuss other necessary subareas to be considered +check p. 3 2 3B of

te)tbook0: Narrati%e discussions +or lay do(n data and information0 and

e)planations +in paragraph form0 depends on the depth of the situation. 12

number of sentences depends on the uality of the analysis4

After discussion of this Marketing function and its subareas, ;8ADEA'I"N (ill

proceed. In the e%aluation, the student must de%elop a conclusion or deduce

a trend or assess the impact to the company. In this ;%aluation, it is


In the identi9cation of one strength or one (eakness, the student may use

the concept of #esource7ased 8ie( +#780 in (hich the presence or absence




optional.

C. Finance # Accounting

Importance, de9nition and principles of inance and Accounting: ;mphasi*e

ho( this functional area is diuestions? in page of 'e)tbook.


4/15

'he compulsory or standard subareas to be considered are the 9nancial

ratios based on 'able 6 on page of 'e)tbook. 'he student should also

declare here the year of the 3 9nancial reports. Narrati%e discussions +or lay

do(n data and information0 and e)planations +in paragraph form0 depends

on the depth of the situation. 12 number of sentences depends on the uality

of the analysis4

). Liuidit( Ratio

$e9ne and discuss the importance of Diuidity #atio

Fear + 0 Fear + 0 "bser%ationsCurrent ratio G

Current AssetsCurrent Diabilities

&ho( Computation andthe inal 8alue+sho( the 9gures thatcame from 9nancial

reports0

&ho( Computation andthe inal 8alue+sho( the 9gures thatcame from 9nancial

reports0

Is the 9nal %alue increasing,decreasing or constantH

>uick +or acidtest0

ratio G&ho( Computation andthe inal 8alue+sho( the 9gures thatcame from 9nancialreports0

&ho( Computation andthe inal 8alue+sho( the 9gures thatcame from 9nancialreports0


Interpretations'he student must assess here the obser%ations, the trend in the computed 9nancial ratiosand must also e)plain the possible reason for such information.

,. Le%erage Ratio

$e9ne and discuss the importance of De%erage #atio

Fear + 0 Fear + 0 "bser%ations

$ebttototalassetsratio

+&ho( ormula0

&ho( Computation and

the inal 8alue+sho( the 9gures thatcame from 9nancialreports0

&ho( Computation and


Is the 9nal %alue increasing,

decreasing or constantH

$ebttoeuity ratio

+&ho( ormula0





5/15

Dongterm debttoeuity ratio

+&ho( ormula0




'imesinterest

earned +or co%erage0

ratio

+&ho( ormula0





/. Acti%it( Ratio"

$e9ne and discuss the importance of Acti%ity #atio


In%entory turno%er

+&ho( ormula0




i)ed assets turno%er

+&ho( ormula0




'otal assets turno%er

+&ho( ormula0




Accounts recei%ableturno%er

+&ho( ormula0




A%erage collection

period

+&ho( ormula0





6/15


0. !ro+ta1i&it( Ratio"

$e9ne and discuss the importance of Pro9tability #atio


Jross pro9t margin+&ho( ormula0 &ho( Computation and




"perating pro9tmargin+&ho( ormula0

&ho( Computation andthe inal 8alue+sho( the 9gures that

came from 9nancialreports0




Net pro9t margin+&ho( ormula0




#eturn on 'otalAssets +#"A0

+&ho( ormula0




#eturn onstockholdersK euity+#";0

+&ho( ormula0




;arnings per share+;P&0

+&ho( ormula0




Priceearnings ratio

+&ho( ormula0







5. 2ro3th Ratio


7/15

$e9ne and discuss the importance of Jro(th #atio


Jro(th #atio on&ales

+&ho( ormula0

&ho( Computation andthe inal 8alue

+sho( the 9gures thatcame from 9nancialreports0

&ho( Computation andthe inal 8alue

+sho( the 9gures thatcame from 9nancialreports0


Jro(th #atio on NetIncome+&ho( ormula0




Jro(th #atio on;arnings per share+&ho( ormula0





After discussion of this inance and Accounting function and its subareas,

;8ADEA'I"N (ill proceed. In the e%aluation, the student must de%elop a

conclusion or deduce a trend or assess the impact of this 9nancial

performance to the company. In this ;%aluation, it is important to identify

either one strength factor or one (eakness factor.






optional.

. !roduction" # $peration"

Importance, de9nition and principles of Productions ! "perations: ;mphasi*e

ho( this functional area is di


8/15


9/15

by caring for ob design,(ork measurement, obenrichment, (orkstandards, andmoti%ation techniues.

5.

>uality

'hese decisions areaimed at ensuring that

highuality goods andser%ices are produced bycaring for uality control,sampling, testing, ualityassurance, and costcontrol.

After discussion of this Productions ! "perations function and its subareas,


conclusion or deduce a trend or assess the impact of this

Productions!"perations situation to the company. In this ;%aluation, it is







optional.

E. Re"earch and e%e&opment

Importance, de9nition and principles of #esearch and $e%elopment:

;mphasi*e ho( this functional area is diuestions? in page B of 'e)tbook. It is discretion or it is

option of the student, if he!she (ant to discuss other necessary subareas to

be considered +check p. 6 2 B of te)tbook0: Narrati%e discussions +or lay

do(n data and information0 and e)planations +in paragraph form0 depends


10/15

on the depth of the situation. 12 number of sentences depends on the uality

of the analysis4

After discussion of this #esearch and $e%elopment function and its subareas,


conclusion or deduce a trend or assess the impact to the company. In this

;%aluation, it is important to identify either one strength factor or one

(eakness factor.





factors and one or more (eakness factors in each function, but this isoptional.

E. Management In'ormation S("tem

Importance, de9nition and principles of Management Information &ystem:

;mphasi*e ho( this functional area is diuestions? in page B of

'e)tbook. Narrati%e discussions +or lay do(n data and information0 and

e)planations +in paragraph form0 depends on the depth of the situation. 12

number of sentences depends on the uality of the analysis4

After discussion of this Management Information &ystem function and its

subareas, ;8ADEA'I"N (ill proceed. In the e%aluation, the student mustde%elop a conclusion or deduce a trend or assess the impact to the company.

In this ;%aluation, it is important to identify either one strength factor or one

(eakness factor.




11/15




optional.

F. Summar( o' Interna& Ana&("i"

). Li"t o' Strength" and *eakne"" Identi+ed

In this part, the student must gather all the identi9ed &trength factors and

eakness factors that emerge from all the functional area analysis: 'he

basis of the identi9ed factors must be speci9ed +rom (hat functional it

came from. ;.g. It came from Marketing, or "peration0: Epon gathering allthe factors it must be classi9ed if it has something to do (ith Competiti%e

Position or inancial Position.

After classifying, rate each factor by assigning numerical %alue based on the

dimension on competiti%e position or 9nancial position +Check the

Po(erPoint slides for the lecture or te)tbook pages -@B to -- for the

e)planation of Competiti%e Position and inancial Position, or slide 3 to 330.

'he concept of Competiti%e Position and inancial Position (ill be more useful

on Chapter pertaining to &trategy ormulation.

&trengths

+;ach factor must be complete sentence0


12/15

eaknesses

+;ach factor must be complete sentence0


13/15

,. Summar( o' -e( Strength" and *eakne""e"

&elect 6 to B &trengths and 6 to B eaknesses. 'he identi9cation of key

strengths and (eaknesses must be meticulously done. In the selection and

prioriti*ation of the &trengths factors, ensure that you ha%e at least one

representati%e from stability competiti%e or 9nancial position.


14/15

igh or lo( ratings obtained in competiti%e and 9nancial position is not a

guide in the selection process. Importance of the strength and (eaknesses

factors +in terms of the big impact or rele%ance to the company0 must be

considered %ery (ell.

Check te)tbook pages -/ for the prioriti*ation of the factors.'hekey internal factors should help +or reali*e the lacking0 in achie%ing and sustaining thecompetiti%e ad%antage

Li"t o' -e( Strength" and *eakne"" o' the 4Compan( Name

Again minimum of 6 and ma)imum of B factors: ;ach factor must be complete sentence.

Note ;nsure that each of these strengths and (eaknesses factor must be

traceable or has basis. ItKs impossible that a strength factor or (eaknesses


15/15

factor suddenly appeared in the list (ithout assimilating information in the

functional areas.

'hese lists are reduced to a manageable factors in order to make it useful

and deri%e e

strama leg ma - template chapter 5 as of december 10.docx

Documents