YWCA Internship
Lola2230
InternalAnalysis-MaryCoulter1.pptStrategic Management in Action
Mary Coulter
Doing An Internal Analysis
Assessing Strengths
and Weaknesses:
© Prentice-Hall 2005
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What is an Internal Analysis?
- Identifies and evaluates resources, capabilities, and core competencies
- Looks at the organization’s strategic objectives
Why Do an Internal Analysis?
- It is the only way to identify an organization’s strengths and weaknesses
- It’s needed for making good strategic decisions
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Seven Primary Functional Areas
The seven core areas your analysis should consider are:
Production & Distribution
Sales & Marketing
Research & Development
Finance & Accounting
Management
Human Resources
Information Systems
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The Role of Strengths and Weaknesses
Strengths: Resources that an organization possesses and capabilities that an organization has developed. Both can be exploited and developed into a sustainable competitive advantage
Weaknesses: Resources and capabilities that are lacking or deficient. Prevent an organization from developing a sustainable competitive advantage
The whole reason for doing an internal analysis is to assess what the organization has or doesn’t have (resources) and what it can and can’t do (capabilities) – i.e., its strengths and weaknesses. The slide links both strengths and weaknesses to sustainable competitive advantage.
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Criteria to Judge Organizational Strengths and Weaknesses
Are organizational
resources and capabilities
strengths or weaknesses?
Past Performance Trends
Specific Goals or Targets
Comparison Against Competitors
Personal Opinions of Strategic
Decision Makers or Consultants
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Characteristics of Distinctive Organizational Capabilities
Distinctive
Organizational
Capabilities
Contributes to Superior Customer Value
(e.g., Timex’s easy to use alarm clocks)
Can Be Used in a Variety of Ways (e.g., Honda’s engine design adapted to cars, lawn tractors, ATVs more)
Is Difficult for Competitors
to Imitate (e.g., Google’s data mining)
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Ideas to Get You Thinking
PRIMARY Activities
Inbound Logistics
Materials control system
Inventory control system
Raw material handling and warehousing
Operations
Equipment comparison to competitors
Plant layout
Production control system
Level of automation in production processes
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Outbound Logistics
Timeliness and efficiency of finished products delivery
Warehousing of finished products
Marketing and Sales
Marketing research
Sales promotions and advertising
Alternative distribution channels
Competency and motivation of sales force
Organization’s image of quality
Organization’s reputation
Brand loyalty of customers
Domination of various market segments
PRIMARY Activities
Ideas to Get You Thinking
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Customer Service
Customer input for product improvements
Handling of customer complaints
Warranty and guarantee policies
Employee training in customer education & service issues
Replacement parts and services
PRIMARY Activities
Ideas to Get You Thinking
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SUPPORT Activities
Procurement
Alternate sources for obtaining needed resources
Timeliness of resources procurement
Procurement of large capital expenditure resources
Lease-versus-purchase decisions
Long-term relationships with reliable suppliers
Technological Development
R&D activities in product and process innovations
Relationship between R&D and other departments
Meeting deadlines in technological development activities
Quality of labs and other research facilities
Qualifications of lab technicians and scientists
Creativity and innovation in organizational culture
Ideas to Get You Thinking
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Human Resource Management
Recruiting, selecting, orienting, and training employees
Employee promotion policies
Reward systems to motivate and challenge employees
Absenteeism and turnover
Union-organization relations
Employee participation in professional organizations
Employee motivation, job commitment, and satisfaction
SUPPORT Activities
Ideas to Get You Thinking
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Firm Infrastructure
Identification of external opportunities and threats
Accomplishing goals with strategic planning system
Coordination and integration of value chain activities
Low-cost capital expenditures & working capital funds
IS support for strategic and operational decisions
Relationships with stakeholders
Public image as a responsible corporate citizen
Ideas to Get You Thinking
SUPPORT Activities
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