SlideShare ist ein Scribd-Unternehmen logo
1 von 65
Downloaden Sie, um offline zu lesen
BPMN 6023 STRATEGIC MANAGEMENT
 LOGO




   Internal Environmental Analysis
Prepared for : Prof Dr Ajay Chauhan
Prepared by : 1. Logeswari d/o Uthama Puthran   808844
               2. Mohd Faiz bin Zalwi @ Alwi    808856
Contents
 Internal scanning: Organization analysis


 Resource-based View


 Business Model


  Value-Chain Analysis

 Scanning Functional Resources

 Scanning Functional Resources and Capabilities

 The Strategic Audit: A Checklist for Organization analysis

 Synthesis of Internal Factors
Introduction
                What is an Internal Analysis?
                         Internal Analysis
Identifies and evaluates resources, capabilities, and core
competencies
Looks at the organization’s
   oCurrent vision
   oMission
   oStrategic objectives
   oStrategies
                 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
INTERNAL SCANNING:
ORGANIZATION ANALYSIS


   Internal       • Critical strength and
                    weaknesses to determine if
   strategic        firm able to take advantage of
    factors         opportunities and avoid threats



                  • Concerned with identifying and
 Organizational
                    developing an organization’s
    analysis        resources and competencies
RESOURCE-BASED VIEW




              Resources                           Capabilities

•Asset (tangible and intangible),   •A corporation ability to exploit its
 competency, process, skill or       resources
 knowledge controlled by the
 corporation
RESOURCE-BASED VIEW



                Distinctive
               competency



          Core
       competency


                      Competency
RESOURCE-BASED VIEW
 Barney, VRIO framework


Value           Rareness        Imitability      Organization
• Does it       • Do other      • Is it costly   • Is the firm
  provide         competitors     for other to     organized
  competitive     posses it?      imitate?         to exploit
  advantage?                                       the
                                                   resource?
RESOURCE-BASED VIEW
Using resources to gain competitive
 advantage
Identify and classify resources in terms of
strengths and weaknesses

   Combine the firm’s strengths into specific
   capabilities and core competencies

        Appraise profit potential- Are there any
        distinctive competencies?

            Select the strategy that best exploits the
            firm’s capabilities and competencies relative
            to external opportunities

                Identify resource gaps and invest in
                upgrading weaknesses
RESOURCE-BASED VIEW
Determine the sustainability of an
 advantage

        Durability                  Imitability
• The rate at which a        • The rate at which a
  firm’s underlying            firm’s underlying
  resources, capabilities,     resources, capabilities,
  or core competencies         or core competencies
  depreciate or become         can be duplicated by
  obsolete                     others
• Eg: Air Asia - Low
  cost airline in Asia
RESOURCE-BASED VIEW


 Imitability Determined By
     Transparency               Transferability             Replicability
   The speed at which     The ability of competitors The ability of competitors
  other firms under the    to gather the resources       to use duplicated
relationship of resources      and capabilities            resources and
and capabilities support   necessary to support a capabilities to imitate the
  a successful strategy     competitive challenge      other firm’s success

  Eg: Gillette’s Sensor    Eg: French Winery’s key     Eg: Procter & Gamble’s
      razor design                resources           coordination mechanism
RESOURCE-BASED VIEW
Explicit knowledge- knowledge that can be easily articulated and
     communicated
Tacit knowledge- knowledge that is not easily communicated
     because it is deeply rooted in employee experience or in the
     company’s culture
BUSINESS MODEL

 Business model



   Company method for
   making money in
   current business




   It includes key
   structural and
   operational
   characteristics of a firm
   – how it earns revenue
   and makes profit
VALUE-CHAIN ANALYSIS

Value chain- a linked set of value creating activities
  that begin with basic raw materials coming from
  suppliers, moving on to a series of value-added
  activities involved in producing and marking a
  product or service, and ending with distributors
  getting the final goods into the hands of the
  ultimate consumer

 Raw       Primary                  Product
                       Fabricat-
materia-   manufa-                 procedu-     Retailer
                          ion
  ls       cturing                    res
VALUE-CHAIN ANALYSIS
VALUE-CHAIN ANALYSIS

Corporate Value Chain Analysis

      Examine each product line’s value chain in terms of the
   various activities involved in producing the product or service




    Examine the linkages within each product line’s value chain




    Examine the potential synergies among the value chains of
             different product lines or business units
SCANNING FUNCTIONAL
RESOURCES
      Basic Organizational Structures

                                                    STRATEGIC    CONGLOMER-
    SIMPLE                                          BUSINESS        ATE
                                                      UNITS
                 FUNCTIONAL DIVISIONAL                (USBS)
 Small or                                                        Large
 entrepreneur-                                                   corporation /
                 Medium-sized    Large             Division or
 dominated                                                       holding
                 firm            corporation       group of
 company                                                         company
                                                   division
                 Product line in Many product      composed of
 One or two                                        independent   Product line in
                 one industry    line in several
 product line                                      product       several
 operates                        industry          market        unrelated
                                                   segmant       industry


                                                   Eg: KFC       Eg:
SCANNING FUNCTIONAL
RESOURCES
Basic Organizational Structures
SCANNING FUNCTIONAL
RESOURCES

Corporate Culture: Attributes

    Cultural intensity            Cultural integration

       The degree of                  The extent of
       which members of               which units
       a unit accept the              throughout the
       norms, values and              organization share
       other cultural                 a common culture.
       content associated             • Shows the breadth of
       with the unit.                   the culture
                                      • Eg: Arm force
       • Shows the depth of the
         culture
       • Eg: Air Asia
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES


 MANAGEMENT

 STRATEGIC MARKETING ISSUES

 STRATEGIC FINANCIAL ISSUES

 STRATEGIC RESEARCH AND DEVELOPMENT
 (R & D) ISSUES

 STRATEGIC OPERATION ISSUES

 STRATEGIC HUMAN RESOURCES ISSUES
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
               MANAGEMENT
Management is a process of coordinating activities,
which comprises of five functions:
                        PLANNING
                           1


  ORGANIZING   2                       3   MOTIVATING

                       MANAGEMENT



      STAFFING     4               3   CONTROLLING
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC MARKETING ISSUE
 1. Market Position and Segmentation                     -
   “Who are our Customer?” – in terms of market, product,
   and geographic locations.

 2. Marketing       Mix     – refers to the particular
   combination of key variables (product, place, promotion
   and price); to affect demand & to gain competitive
   advantage

 3. Product Life Cycle          -is a graph showing time
   plotted against the monetary sales of a product as it
   moves from introduction through growth and maturity
   and to decline.

 4. Brand and Corporate Reputation                   – A
   Brand is a name given to a company’s product which
   identifies that item in the mind of the consumer.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
               STRATEGIC MARKETING ISSUE
 1.   Market Position and Segmentation - “Who are our Customer?” –
      in terms of market, product, and geographic locations. To
      discover what niches to seek, which new types of products to
      develop,
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
     STRATEGIC MARKETING ISSUE
 2. Marketing Mix – refers to the particular combination
    of key variables ( 4P’s :Product, Place, Promotion and Price);
    under a corporation’s control that can be used to affect demand
    & to gain competitive advantage.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
                 STRATEGIC MARKETING ISSUE
 1.   Product Life Cycle -is       a graph showing time plotted against the
      monetary sales of a product as it moves from introduction through growth
      and maturity and to decline.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
      STRATEGIC MARKETING ISSUE
 1. Brand and Corporate Reputation
    – A Brand is a name given to a company’s product which
    identifies that item in the mind of the consumer.
    - Over time and with proper advertising, a brand connotes
    various characteristics in the consumer’ mind.
    - For example, Disney stands for family entertainment,
    BMW means high-performance autos

    - A Corporate Reputation is a widely held perception of a
    company by the general public. It consists of two
    attributes:
 1) Stakeholders’ perception of a corporation’s ability to
    produce quality goods and;
 2) A Corporation’s prominence in the minds of stakeholders.
    A good corporate reputation can be a strategic resources.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES

      STRATEGIC FINANCIAL ISSUES
  To Identify a Company’s Strengths and Weaknesses from the
   financial perspective.
 1. Financial Leverage
    The concept of financial leverage (the ratio of total debt to
    total assets) is helpful in describing how debt is used to
    increase the earnings available to common shareholders.

 2. Capital Budgeting
    Capital Budgeting is the analyzing and ranking of possible
    investments in fixed assets such as land, buildings, and
    equipment in terms of the additional outlays and additional
    receipts that will result from each investment.
    *Hurdle point
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
      STRATEGIC FINANCIAL ISSUES
     To Identify a Company’s Strengths and Weaknesses from the
       financial perspective.
   Question concerning the financial position of the company, it’s
    stability and competitiveness could only be answered after a
    thorough and detailed financial analysis.
   Adequate capital is the basic foundation to run any business. It is
    essential to control cash flow within the organization to ensure
    conformity with its intended use
   Budgeting plays important role to ensure that all allocation of cash
    is appropriately distributed.
   Determining of financial strengths and weakness is important for
    effective strategy formulation activities and to compliment other
    departments within the company such as the operation,
    management and marketing division.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
      STRATEGIC FINANCIAL ISSUES
 1. Financial Ratios
   The five main ratios is used in evaluating the
   company’s financial positions;

   1.   Liquidity Ratios
   2.   Leverage Ratios
   3.   Activity Ratios
   4.   Profitability Ratios
   5.   Growths Ratios
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
      STRATEGIC FINANCIAL ISSUES
 1. Financial Ratios
Liquidity ratios measure a firm’s ability to
meet its current financial obligations.

Liquidity Ratios include:

  Net working capital

  Current Ratio

  Quick Ratio
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
         STRATEGIC FINANCIAL ISSUES
  Net Working Capital
    While not technically a ratio, Net Working Capital (NWC) is a key element for
     internal control.
    The higher this number the better.
    NWC is found by subtracting current liabilities from current assets.
    This is a sign of growing assets while keeping their liabilities stable.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC FINANCIAL ISSUES
  Current Ratio
  The Current Ratio is a direct evaluation of a
   company’s liquidity.
  The higher this value, the more liquid a firm’s
   resources are.
  Current Ratio is found by dividing current
   assets by current liabilities.
  This could be improved by lowering the
   reliance on debt financing.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
     STRATEGIC FINANCIAL ISSUES
  Quick Ratio
  The Quick Ratio is comparable to the Current
   Ratio except that it takes inventory levels
   into consideration.

  This is found by subtracting inventories from
   current assets and then dividing by current
   assets.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
     STRATEGIC FINANCIAL ISSUES
  Activity Ratio Analysis
  Activity Ratios are used to measure the speed
   with which accounts are converted into cash.
  Activity Ratios include:
    Inventory Turnover
    Average Collection Period
    Total Asset Turnover
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC FINANCIAL ISSUES
  Inventory Turnover
 Inventory Turnover is measurement of a firm’s
 inventory liquidity.
 This is found by cost of goods sold(COGS) by
 inventory.
 Generally a lower number is better.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
   STRATEGIC FINANCIAL ISSUES
 Total Asset Turnover
 Total Asset Turnover illustrates the firm’s ability and
  proficiency in using its assets to generated sales.
 It is found by dividing sales by total assets, and is
  measured in times per year
 When using cross-sectional analysis, a company must
  take special care in comparing Total Asset Turnover
  because new assets tend to have lower turnover.
SCANNING FUNCTIONAL RESOURCES AND
 CAPABILITIES
   STRATEGIC FINANCIAL ISSUES
 Debt Ratio Analysis
 A company’s debt position is a measure of how much of the
  firm’s profits are generated using money borrowed from
  other companies or individuals.
 Debt Ratios include:
    Financial Leverage Multiplier
    Debt Ratio
    Interest Coverage Ratio
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
     STRATEGIC FINANCIAL ISSUES
  Financial Leverage Multiplier
The Financial Leverage Multiplier (FLM) is used to
convert the company’s Return On Assets to its Return
on Equity. This reflects the impact of leverage, or use
of debt, on owners’ return.

It is the ratio of total assets to stockholders’ equity.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC FINANCIAL ISSUES
  Profitability Ratio Analysis
  Profitability Ratios evaluate a company’s
   earnings with respect to sales, assets,
   owner’s investments and share values.
  Profitability Ratios include
     Gross Profit Margin
     Operating Profit Margin
     Net Profit Margin
     Return on Total Assets
     Return on Equity
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC FINANCIAL ISSUES
  Gross Profit Margin
The Gross Profit Margin(GPR) is the
percentage of each sales dollar that remains
after the firm has paid for the goods sold.

It is found by subtracting COGS from sales
and dividing by sales.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC FINANCIAL ISSUES
  Net Profit Margin
 Net Profit Margin(NPR), one of the most
 popular indicators of company health, measures
 the percentage of sales revenue remaining after
 ALL expenses are paid.

 NPR is found by dividing net profits by sales
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
   STRATEGIC FINANCIAL ISSUES
 Return on Total Assets
 Return of Total Assets(ROA), also known as return on
 investment, measures a firm’s effectiveness at
 generating profits with its assets.

 ROA is found by dividing the net profits after taxes by
 total assets.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC FINANCIAL ISSUES
  Return on Equity
  The Return on Equity(ROE) is extremely important to
   potential investors.

  ROE is found by dividing net profit by owner’s equity.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
        STRATEGIC FINANCIAL ISSUES
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
        STRATEGIC FINANCIAL ISSUES
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
        STRATEGIC FINANCIAL ISSUES
SCANNING FUNCTIONAL RESOURCES AND
 CAPABILITIES
STRATEGIC RESEARCH AND DEVELOPMENT (R & D)
                  ISSUES

1. R & D Intensity, Technological Competence, and
   Technology Transfer -The Company must make available
  the resources necessary for effective research and development.
  A Company’s R & D intensity is a principal means of gaining
  market share in global competition. The amount spent on R & D
  often varies by industry.
2. R & D Mix    - Basic R & D is conducted by scientists in well-
  equipped laboratories where the focus is on the theoretical
  problem areas. Product R & D- concentrates on marketing and is
  concerned with product or product packaging improvements
3. Engineering     R   &   D     - concerned with engineering,
  concentrating on quality control, and the development of design
  specifications and improved production equipment
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
    STRATEGIC RESEARCH AND DEVELOPMENT (R & D) ISSUES
             Impact of Technological of Discontinuity on Strategy




In the corporate planning process, it is generally assumed that incremental progress in
technology will occur. But pass developments in a given technology cannot be extrapolated
into the future because every technology has its limits. The key to competitiveness is to
determine when to shift resources to a technology that has more potential.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
   STRATEGIC OPERATION ISSUES
1. Experience Curve -       unit production costs
  decline by some fixed percentage each time the
  total accumulated volume of production units
  doubles
2. Flexible Manufacturing for Mass
   Customization – The use of Computer-
  Assisted     Design      and    Computer-Assisted
  Manufacturing (CAD/CAM) and robot technology
  means that learning time is shorter and products
  can be manufactured in small, customized batches
  in a process call mass customization – the low cost
  production of individually customized goods and
  services.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
           STRATEGIC OPERATION ISSUES
BUSINESS PROCESS AND OPERATION
AirAsia has fostered a dependency on Internet technology for its operational
and strategic management, and provides an online ticket booking services to
traveler online. The following shows the home page of AirAsia.com as the
company key channel of marketing and sales.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
       STRATEGIC OPERATION ISSUES
       BUSINESS PROCESS AND OPERATION
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
     STRATEGIC HUMAN RESOURCE (HRM)
                      ISSUES
1.   Increasing Use of Teams
2.   Union Relations and temporary/Part-
     Time Workers
3.   Quality of Work Life and Human Diversity
4.   Impact on Performance
5.   Supply Chain Management
SCANNING FUNCTIONAL RESOURCES AND
 CAPABILITIES
   STRATEGIC HUMAN RESOURCE (HRM) ISSUES
1. Increasing Use of Teams

   Teams

   Autonomous (self-managed)- a group of people
       working together without a supervisor to plan,
       coordinate and evaluate their work

   Cross-functional work teams- various disciplines are
       involved in a project from the beginning

   Concurrent engineering- specialists work side-by-
      side and compare notes constantly to design
      cost-effective products with features customers
      want
SCANNING FUNCTIONAL RESOURCES AND
 CAPABILITIES
   STRATEGIC HUMAN RESOURCE (HRM) ISSUES
1. Increasing Use of Teams

   Virtual Teams - groups of geographically or
       organizationally dispersed coworkers that
       are assembled using a combination of
       telecommunications      and   information
       technologies to accomplish organizational
       tasks.
SCANNING FUNCTIONAL RESOURCES AND
 CAPABILITIES
   STRATEGIC HUMAN RESOURCE (HRM) ISSUES
2. Union Relations and temporary/Part-Time Workers -                  If the
   corporation is unionized, a good human resource manager should be able
   to work closely with the union. To save jobs, Unions are increasingly
   willing to support new strategic initiatives and employee involvement. To
   increase flexibility, avoid layoffs, and reduce labor costs, corporations
   are using more temporary (also known as contingent) workers.

3. Quality of Work Life and Human Diversity                -Human Resource
   departments have found that to reduce employee dissatisfaction and
   unionization efforts (or, conversely, to improve employee satisfaction
   and existing union relations), they must consider the quality of work life
   in the design of jobs. To Improve the corporation’s quality of work life by
   (1) Introducing participative problem solving
   (2) Restructuring Work,
   (3) Introducing innovative reward systems, and
   (4) improving the work environment
   Human Diversity refers to the mix in the workplace of people from
   different races, cultures, and backgrounds.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
 STRATEGIC HUMAN RESOURCE (HRM) ISSUES

4. Impact on Performance           – A current trend in corporate
  information systems/ technology is the increasing use of the
  internet for marketing, intranets for internal communication,
  and extranets for logistics and distribution.

  INTRANET – is an information network within an organization
  that also has access to the external worldwide Internet.

  EXTRANET – is an information network within an organization
  that is available to key suppliers and customers.

5. Supply Chain Management                - is the forming of
  networks for sourcing raw materials, manufacturing products
  or creating services, storing and distributing the goods, and
  delivering them to customers and consumers.
SCANNING FUNCTIONAL RESOURCES AND
CAPABILITIES
       STRATEGIC HUMAN RESOURCE (HRM) ISSUES

           Evaluate people and partners in AirAsia
The AirAsia Team have highly competitive and attractive compensation
packages.

In order to provide customer excellent service, AirAsia arrange a series
of training course to their in-house flight attendant. The training
courses include awareness on safety standards, aviation terminology, in
flight service procedures, product knowledge and so on.

AirAsia chose many kinds of field partners as their complementors.
Their partnership can divide into two main kinds: direct partners and
indirect partners.

Direct partners have strong relationship with the airline, for
example, hotels, travel agencies and so on. And indirect partner
included Facebook, Twitter Koolred and Youtube.

AirAsia is company which rely on Internet a lot so with those
communities, AirAsia can build strong connection with their customers
THE STRATEGIC AUDIT : A CHECKLIST FOR
ORGANIZATIONAL ANALYSIS

  STRENGTHS AND WEAKNESSES (SWOT)

       – When all the factors related with internal
         analysis      ascertained       (management,
         marketing,            financial           and
         operation/production), the organisation is
         then able to see its position more clearly. In
         addition, the company’s strengths and
         weakness can also be identified.
THE STRATEGIC AUDIT : A CHECKLIST FOR
ORGANIZATIONAL ANALYSIS
                          AirAsia SWOT Analysis
Strengths
• Low cost operations
• Fewer management level, effective, focused and aggressive management
• Simple proven business model that consistently delivers that lowest fares
• Penetrate and stimulate to potential markets
• Multi-skilled staffs means efficient and incentive workforce
• Single type fleet minimize maintenance fee and easy for pilot dispatch
Weaknesses
• Service resource is limited by lower costs
• Limited human resources could not handle irregular situation
• Government interference and regulation on airport deals and passenger
compensation
• Non-central location of secondary airports
• Brand is vital for market position and developing it is always a challenge
• Heavy reliance on outsourcing
• New entrants to provide the price-sensitive services

   www.themegallery.com                                                   Company Logo
SYNTHESIS OF INTERNAL FACTORS
 INTERNAL FACTOR ANALYSIS SUMMARY (IFAS)
LOGO




       Click to edit company slogan .
INTERNAL STRATEGIC
FACTORS
Strength                       Weakness
Low cost carrier               Service resource is limited by
                               lower costs
First mover advantage (first   Limited human resources
low cost airline in Asia)
More seats per aircraft        Regulation on airport

Single type fleet minimize     Complaints from customers
maintenance fee                (flight delays)

Reduced staff numbers
Brand name
RESOURCES, CAPABILITIES,
COMPETENCIES



Resources      Constructive and supportive management
               Highly skilled employees
               Capabilities to reduce cost
Capabilities   Quick turnaround time
               Low-cost short haul
               High rate aircraft utilization
Competencies   The strategic decision in using one type of
               aircraft
               The synergy between AA management and its
               employees
               The capabilities themselves
BUSINESS MODEL
VALUE-CHAIN ANALYSIS:
KFC
VALUE-CHAIN ANALYSIS:
AIR ASIA

Weitere ähnliche Inhalte

Was ist angesagt?

Strategic evaluation & control
Strategic evaluation & controlStrategic evaluation & control
Strategic evaluation & controlBandri Nikhil
 
Strategic managemnet process ppt
Strategic managemnet process pptStrategic managemnet process ppt
Strategic managemnet process pptMUHAMMAD HASRATH
 
Strategy Evaluation
Strategy Evaluation Strategy Evaluation
Strategy Evaluation Taher Ahmed
 
Strategic evaluation and control
Strategic evaluation and controlStrategic evaluation and control
Strategic evaluation and controlRadhey Shyam Yadav
 
External Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision MakingExternal Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision MakingHarish Lunani
 
Strategy review, evaluation and control
Strategy review, evaluation and controlStrategy review, evaluation and control
Strategy review, evaluation and controlMervyn Maico Aldana
 
Introduction Of Strategic Management
Introduction Of Strategic ManagementIntroduction Of Strategic Management
Introduction Of Strategic ManagementYamini Kahaliya
 
Business level strategies
Business level strategiesBusiness level strategies
Business level strategiesJithin Zcs
 
SWOT analysis - strategic management - Manu Melwin Joy
SWOT analysis -  strategic management - Manu Melwin JoySWOT analysis -  strategic management - Manu Melwin Joy
SWOT analysis - strategic management - Manu Melwin Joymanumelwin
 
Strategic formulation in Strategic management
Strategic formulation in Strategic managementStrategic formulation in Strategic management
Strategic formulation in Strategic managementYamini Kahaliya
 
Comprehensive strategy formulation framework
Comprehensive strategy formulation frameworkComprehensive strategy formulation framework
Comprehensive strategy formulation frameworkNayyarShakeel
 
Strategic management
Strategic managementStrategic management
Strategic managementapverma01
 

Was ist angesagt? (20)

Strategic evaluation & control
Strategic evaluation & controlStrategic evaluation & control
Strategic evaluation & control
 
Strategic management model process
Strategic management model processStrategic management model process
Strategic management model process
 
Prsentation on space matrix
Prsentation on space matrixPrsentation on space matrix
Prsentation on space matrix
 
Strategic managemnet process ppt
Strategic managemnet process pptStrategic managemnet process ppt
Strategic managemnet process ppt
 
Strategy Evaluation
Strategy Evaluation Strategy Evaluation
Strategy Evaluation
 
Strategy Formulation and Implementation
Strategy Formulation and ImplementationStrategy Formulation and Implementation
Strategy Formulation and Implementation
 
Strategic evaluation and control
Strategic evaluation and controlStrategic evaluation and control
Strategic evaluation and control
 
External Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision MakingExternal Environmental Analysis - Strategic Decision Making
External Environmental Analysis - Strategic Decision Making
 
Corporate strategy
Corporate strategyCorporate strategy
Corporate strategy
 
Strategy review, evaluation and control
Strategy review, evaluation and controlStrategy review, evaluation and control
Strategy review, evaluation and control
 
Introduction Of Strategic Management
Introduction Of Strategic ManagementIntroduction Of Strategic Management
Introduction Of Strategic Management
 
Business level strategies
Business level strategiesBusiness level strategies
Business level strategies
 
Different levels of strategy
Different levels of strategyDifferent levels of strategy
Different levels of strategy
 
Strategy formulation
Strategy formulationStrategy formulation
Strategy formulation
 
SWOT analysis - strategic management - Manu Melwin Joy
SWOT analysis -  strategic management - Manu Melwin JoySWOT analysis -  strategic management - Manu Melwin Joy
SWOT analysis - strategic management - Manu Melwin Joy
 
Strategic management
Strategic  managementStrategic  management
Strategic management
 
Strategic formulation in Strategic management
Strategic formulation in Strategic managementStrategic formulation in Strategic management
Strategic formulation in Strategic management
 
Strategy implementation
Strategy implementationStrategy implementation
Strategy implementation
 
Comprehensive strategy formulation framework
Comprehensive strategy formulation frameworkComprehensive strategy formulation framework
Comprehensive strategy formulation framework
 
Strategic management
Strategic managementStrategic management
Strategic management
 

Andere mochten auch

Internal Analysys Of Strategic Management
Internal Analysys Of Strategic ManagementInternal Analysys Of Strategic Management
Internal Analysys Of Strategic Managementguestd507e7
 
Value chain analysis
Value chain analysisValue chain analysis
Value chain analysisMonish rm
 
Assessing Strengths and Weaknesses
Assessing Strengths and WeaknessesAssessing Strengths and Weaknesses
Assessing Strengths and WeaknessesSalih Islam
 
Human resource strategy
Human resource strategyHuman resource strategy
Human resource strategyPrashant Mehta
 
Strategic Management Group Assignment 1
Strategic Management Group Assignment 1Strategic Management Group Assignment 1
Strategic Management Group Assignment 1KyleL1
 
Strategic Management- TOWS Matrix
Strategic Management- TOWS MatrixStrategic Management- TOWS Matrix
Strategic Management- TOWS MatrixSachin Udhani
 
Business Ethics & Corporate Social Responsibility - Lynden Riley
Business Ethics & Corporate Social Responsibility - Lynden RileyBusiness Ethics & Corporate Social Responsibility - Lynden Riley
Business Ethics & Corporate Social Responsibility - Lynden RileyLynden Riley
 
Applying the vrio framework (1)
Applying the vrio framework (1)Applying the vrio framework (1)
Applying the vrio framework (1)ashwiniMP
 
Popular strategy diagrams
Popular strategy diagramsPopular strategy diagrams
Popular strategy diagramsgaryma_sharma
 
Strategic Management And Strategic Alternatives
Strategic Management And Strategic AlternativesStrategic Management And Strategic Alternatives
Strategic Management And Strategic AlternativesDr. Trilok Kumar Jain
 
Business Ethics and Corporate Social Responsibility
Business Ethics and Corporate Social ResponsibilityBusiness Ethics and Corporate Social Responsibility
Business Ethics and Corporate Social Responsibilitygeoffmbaker
 
Chapter 2 internal environmental analysis
Chapter 2   internal environmental analysisChapter 2   internal environmental analysis
Chapter 2 internal environmental analysismayank12wadhwa
 
10 strategic advantage profile
10 strategic advantage profile10 strategic advantage profile
10 strategic advantage profileTaranpreet Kaur
 

Andere mochten auch (20)

Internal Analysys Of Strategic Management
Internal Analysys Of Strategic ManagementInternal Analysys Of Strategic Management
Internal Analysys Of Strategic Management
 
Value chain analysis
Value chain analysisValue chain analysis
Value chain analysis
 
Factors Affecting E-Procurement Adoption in Minimizing Risks in the Supply Ch...
Factors Affecting E-Procurement Adoption in Minimizing Risks in the Supply Ch...Factors Affecting E-Procurement Adoption in Minimizing Risks in the Supply Ch...
Factors Affecting E-Procurement Adoption in Minimizing Risks in the Supply Ch...
 
Assessing Strengths and Weaknesses
Assessing Strengths and WeaknessesAssessing Strengths and Weaknesses
Assessing Strengths and Weaknesses
 
strategyppt
strategyppt strategyppt
strategyppt
 
Human resource strategy
Human resource strategyHuman resource strategy
Human resource strategy
 
Strategic Management Group Assignment 1
Strategic Management Group Assignment 1Strategic Management Group Assignment 1
Strategic Management Group Assignment 1
 
Financial strategy
Financial strategyFinancial strategy
Financial strategy
 
Strategic Management- TOWS Matrix
Strategic Management- TOWS MatrixStrategic Management- TOWS Matrix
Strategic Management- TOWS Matrix
 
Business Ethics & Corporate Social Responsibility - Lynden Riley
Business Ethics & Corporate Social Responsibility - Lynden RileyBusiness Ethics & Corporate Social Responsibility - Lynden Riley
Business Ethics & Corporate Social Responsibility - Lynden Riley
 
Applying the vrio framework (1)
Applying the vrio framework (1)Applying the vrio framework (1)
Applying the vrio framework (1)
 
Strategy selection matrix diagram
Strategy selection matrix diagramStrategy selection matrix diagram
Strategy selection matrix diagram
 
Popular strategy diagrams
Popular strategy diagramsPopular strategy diagrams
Popular strategy diagrams
 
Strategic Management And Strategic Alternatives
Strategic Management And Strategic AlternativesStrategic Management And Strategic Alternatives
Strategic Management And Strategic Alternatives
 
Business Ethics and Corporate Social Responsibility
Business Ethics and Corporate Social ResponsibilityBusiness Ethics and Corporate Social Responsibility
Business Ethics and Corporate Social Responsibility
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Vroom's ppt
Vroom's pptVroom's ppt
Vroom's ppt
 
Stakeholder Analysis
Stakeholder AnalysisStakeholder Analysis
Stakeholder Analysis
 
Chapter 2 internal environmental analysis
Chapter 2   internal environmental analysisChapter 2   internal environmental analysis
Chapter 2 internal environmental analysis
 
10 strategic advantage profile
10 strategic advantage profile10 strategic advantage profile
10 strategic advantage profile
 

Ähnlich wie Internal Environmental Analysis

MODULE-3-THE-INTERNAL-ORGANIZATION.pptx
MODULE-3-THE-INTERNAL-ORGANIZATION.pptxMODULE-3-THE-INTERNAL-ORGANIZATION.pptx
MODULE-3-THE-INTERNAL-ORGANIZATION.pptxShainaBaptista
 
9 organisation capability & port folio
9 organisation capability & port folio9 organisation capability & port folio
9 organisation capability & port folioTaranpreet Kaur
 
Str Mgt Lesson 4 Internal Scanning Scanning
Str Mgt Lesson 4 Internal Scanning ScanningStr Mgt Lesson 4 Internal Scanning Scanning
Str Mgt Lesson 4 Internal Scanning ScanningApex
 
Corporate analysis and strategies
Corporate analysis and strategiesCorporate analysis and strategies
Corporate analysis and strategiesSimran Kaur
 
2.1 skill org analysis
2.1 skill org analysis2.1 skill org analysis
2.1 skill org analysisNigestAbebaw1
 
Iv. internal analysis
Iv.  internal analysisIv.  internal analysis
Iv. internal analysisefray527
 
Functional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology ReportFunctional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology ReportBrandon Thomson
 
L 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etcL 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etcSudhir Upadhyay
 
Competence Based Strategic Mangement
Competence Based Strategic MangementCompetence Based Strategic Mangement
Competence Based Strategic MangementArjan Vernhout
 
Business analysis | Gabrielle Rusignuolo
Business analysis | Gabrielle RusignuoloBusiness analysis | Gabrielle Rusignuolo
Business analysis | Gabrielle RusignuoloGabrielle Rusignuolo
 
ORGANIZATIONAL ANALYSIS.pptx
ORGANIZATIONAL ANALYSIS.pptxORGANIZATIONAL ANALYSIS.pptx
ORGANIZATIONAL ANALYSIS.pptxelle54
 
Note on Implementation Strategy -A Harvard Business Review Kenneth R. An...
Note on Implementation Strategy -A Harvard Business Review      Kenneth R. An...Note on Implementation Strategy -A Harvard Business Review      Kenneth R. An...
Note on Implementation Strategy -A Harvard Business Review Kenneth R. An...Priyank Jain
 
Environment analysis
Environment analysisEnvironment analysis
Environment analysisBrahm Sharma
 

Ähnlich wie Internal Environmental Analysis (20)

SKM
SKM SKM
SKM
 
Nike.pptx
Nike.pptxNike.pptx
Nike.pptx
 
MODULE-3-THE-INTERNAL-ORGANIZATION.pptx
MODULE-3-THE-INTERNAL-ORGANIZATION.pptxMODULE-3-THE-INTERNAL-ORGANIZATION.pptx
MODULE-3-THE-INTERNAL-ORGANIZATION.pptx
 
Functional analysis
Functional analysisFunctional analysis
Functional analysis
 
9 organisation capability & port folio
9 organisation capability & port folio9 organisation capability & port folio
9 organisation capability & port folio
 
Rbv
RbvRbv
Rbv
 
Chap-3 (1).pptx
Chap-3 (1).pptxChap-3 (1).pptx
Chap-3 (1).pptx
 
Internal analysis
Internal analysisInternal analysis
Internal analysis
 
Str Mgt Lesson 4 Internal Scanning Scanning
Str Mgt Lesson 4 Internal Scanning ScanningStr Mgt Lesson 4 Internal Scanning Scanning
Str Mgt Lesson 4 Internal Scanning Scanning
 
Corporate analysis and strategies
Corporate analysis and strategiesCorporate analysis and strategies
Corporate analysis and strategies
 
2.1 skill org analysis
2.1 skill org analysis2.1 skill org analysis
2.1 skill org analysis
 
Iv. internal analysis
Iv.  internal analysisIv.  internal analysis
Iv. internal analysis
 
Functional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology ReportFunctional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology Report
 
L 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etcL 9 value chain analysis, eva, mva etc
L 9 value chain analysis, eva, mva etc
 
Competence Based Strategic Mangement
Competence Based Strategic MangementCompetence Based Strategic Mangement
Competence Based Strategic Mangement
 
Business analysis | Gabrielle Rusignuolo
Business analysis | Gabrielle RusignuoloBusiness analysis | Gabrielle Rusignuolo
Business analysis | Gabrielle Rusignuolo
 
Lect 3 internal-analysis
Lect 3 internal-analysisLect 3 internal-analysis
Lect 3 internal-analysis
 
ORGANIZATIONAL ANALYSIS.pptx
ORGANIZATIONAL ANALYSIS.pptxORGANIZATIONAL ANALYSIS.pptx
ORGANIZATIONAL ANALYSIS.pptx
 
Note on Implementation Strategy -A Harvard Business Review Kenneth R. An...
Note on Implementation Strategy -A Harvard Business Review      Kenneth R. An...Note on Implementation Strategy -A Harvard Business Review      Kenneth R. An...
Note on Implementation Strategy -A Harvard Business Review Kenneth R. An...
 
Environment analysis
Environment analysisEnvironment analysis
Environment analysis
 

Kürzlich hochgeladen

The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZKanakChauhan5
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 

Kürzlich hochgeladen (20)

The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZ
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 

Internal Environmental Analysis

  • 1. BPMN 6023 STRATEGIC MANAGEMENT LOGO Internal Environmental Analysis Prepared for : Prof Dr Ajay Chauhan Prepared by : 1. Logeswari d/o Uthama Puthran 808844 2. Mohd Faiz bin Zalwi @ Alwi 808856
  • 2. Contents Internal scanning: Organization analysis Resource-based View Business Model Value-Chain Analysis Scanning Functional Resources Scanning Functional Resources and Capabilities The Strategic Audit: A Checklist for Organization analysis Synthesis of Internal Factors
  • 3. Introduction What is an Internal Analysis? Internal Analysis Identifies and evaluates resources, capabilities, and core competencies Looks at the organization’s oCurrent vision oMission oStrategic objectives oStrategies 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
  • 4. INTERNAL SCANNING: ORGANIZATION ANALYSIS Internal • Critical strength and weaknesses to determine if strategic firm able to take advantage of factors opportunities and avoid threats • Concerned with identifying and Organizational developing an organization’s analysis resources and competencies
  • 5. RESOURCE-BASED VIEW Resources Capabilities •Asset (tangible and intangible), •A corporation ability to exploit its competency, process, skill or resources knowledge controlled by the corporation
  • 6. RESOURCE-BASED VIEW Distinctive competency Core competency Competency
  • 7. RESOURCE-BASED VIEW Barney, VRIO framework Value Rareness Imitability Organization • Does it • Do other • Is it costly • Is the firm provide competitors for other to organized competitive posses it? imitate? to exploit advantage? the resource?
  • 8. RESOURCE-BASED VIEW Using resources to gain competitive advantage Identify and classify resources in terms of strengths and weaknesses Combine the firm’s strengths into specific capabilities and core competencies Appraise profit potential- Are there any distinctive competencies? Select the strategy that best exploits the firm’s capabilities and competencies relative to external opportunities Identify resource gaps and invest in upgrading weaknesses
  • 9. RESOURCE-BASED VIEW Determine the sustainability of an advantage Durability Imitability • The rate at which a • The rate at which a firm’s underlying firm’s underlying resources, capabilities, resources, capabilities, or core competencies or core competencies depreciate or become can be duplicated by obsolete others • Eg: Air Asia - Low cost airline in Asia
  • 10. RESOURCE-BASED VIEW Imitability Determined By Transparency Transferability Replicability The speed at which The ability of competitors The ability of competitors other firms under the to gather the resources to use duplicated relationship of resources and capabilities resources and and capabilities support necessary to support a capabilities to imitate the a successful strategy competitive challenge other firm’s success Eg: Gillette’s Sensor Eg: French Winery’s key Eg: Procter & Gamble’s razor design resources coordination mechanism
  • 11. RESOURCE-BASED VIEW Explicit knowledge- knowledge that can be easily articulated and communicated Tacit knowledge- knowledge that is not easily communicated because it is deeply rooted in employee experience or in the company’s culture
  • 12. BUSINESS MODEL Business model Company method for making money in current business It includes key structural and operational characteristics of a firm – how it earns revenue and makes profit
  • 13. VALUE-CHAIN ANALYSIS Value chain- a linked set of value creating activities that begin with basic raw materials coming from suppliers, moving on to a series of value-added activities involved in producing and marking a product or service, and ending with distributors getting the final goods into the hands of the ultimate consumer Raw Primary Product Fabricat- materia- manufa- procedu- Retailer ion ls cturing res
  • 15. VALUE-CHAIN ANALYSIS Corporate Value Chain Analysis Examine each product line’s value chain in terms of the various activities involved in producing the product or service Examine the linkages within each product line’s value chain Examine the potential synergies among the value chains of different product lines or business units
  • 16. SCANNING FUNCTIONAL RESOURCES Basic Organizational Structures STRATEGIC CONGLOMER- SIMPLE BUSINESS ATE UNITS FUNCTIONAL DIVISIONAL (USBS) Small or Large entrepreneur- corporation / Medium-sized Large Division or dominated holding firm corporation group of company company division Product line in Many product composed of One or two independent Product line in one industry line in several product line product several operates industry market unrelated segmant industry Eg: KFC Eg:
  • 18. SCANNING FUNCTIONAL RESOURCES Corporate Culture: Attributes Cultural intensity Cultural integration The degree of The extent of which members of which units a unit accept the throughout the norms, values and organization share other cultural a common culture. content associated • Shows the breadth of with the unit. the culture • Eg: Arm force • Shows the depth of the culture • Eg: Air Asia
  • 19. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES MANAGEMENT STRATEGIC MARKETING ISSUES STRATEGIC FINANCIAL ISSUES STRATEGIC RESEARCH AND DEVELOPMENT (R & D) ISSUES STRATEGIC OPERATION ISSUES STRATEGIC HUMAN RESOURCES ISSUES
  • 20. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES MANAGEMENT Management is a process of coordinating activities, which comprises of five functions: PLANNING 1 ORGANIZING 2 3 MOTIVATING MANAGEMENT STAFFING 4 3 CONTROLLING
  • 21. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC MARKETING ISSUE 1. Market Position and Segmentation - “Who are our Customer?” – in terms of market, product, and geographic locations. 2. Marketing Mix – refers to the particular combination of key variables (product, place, promotion and price); to affect demand & to gain competitive advantage 3. Product Life Cycle -is a graph showing time plotted against the monetary sales of a product as it moves from introduction through growth and maturity and to decline. 4. Brand and Corporate Reputation – A Brand is a name given to a company’s product which identifies that item in the mind of the consumer.
  • 22. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC MARKETING ISSUE 1. Market Position and Segmentation - “Who are our Customer?” – in terms of market, product, and geographic locations. To discover what niches to seek, which new types of products to develop,
  • 23. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC MARKETING ISSUE 2. Marketing Mix – refers to the particular combination of key variables ( 4P’s :Product, Place, Promotion and Price); under a corporation’s control that can be used to affect demand & to gain competitive advantage.
  • 24. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC MARKETING ISSUE 1. Product Life Cycle -is a graph showing time plotted against the monetary sales of a product as it moves from introduction through growth and maturity and to decline.
  • 25. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC MARKETING ISSUE 1. Brand and Corporate Reputation – A Brand is a name given to a company’s product which identifies that item in the mind of the consumer. - Over time and with proper advertising, a brand connotes various characteristics in the consumer’ mind. - For example, Disney stands for family entertainment, BMW means high-performance autos - A Corporate Reputation is a widely held perception of a company by the general public. It consists of two attributes: 1) Stakeholders’ perception of a corporation’s ability to produce quality goods and; 2) A Corporation’s prominence in the minds of stakeholders. A good corporate reputation can be a strategic resources.
  • 26. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  To Identify a Company’s Strengths and Weaknesses from the financial perspective. 1. Financial Leverage The concept of financial leverage (the ratio of total debt to total assets) is helpful in describing how debt is used to increase the earnings available to common shareholders. 2. Capital Budgeting Capital Budgeting is the analyzing and ranking of possible investments in fixed assets such as land, buildings, and equipment in terms of the additional outlays and additional receipts that will result from each investment. *Hurdle point
  • 27. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  To Identify a Company’s Strengths and Weaknesses from the financial perspective.  Question concerning the financial position of the company, it’s stability and competitiveness could only be answered after a thorough and detailed financial analysis.  Adequate capital is the basic foundation to run any business. It is essential to control cash flow within the organization to ensure conformity with its intended use  Budgeting plays important role to ensure that all allocation of cash is appropriately distributed.  Determining of financial strengths and weakness is important for effective strategy formulation activities and to compliment other departments within the company such as the operation, management and marketing division.
  • 28. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES 1. Financial Ratios The five main ratios is used in evaluating the company’s financial positions; 1. Liquidity Ratios 2. Leverage Ratios 3. Activity Ratios 4. Profitability Ratios 5. Growths Ratios
  • 29. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES 1. Financial Ratios Liquidity ratios measure a firm’s ability to meet its current financial obligations. Liquidity Ratios include: Net working capital Current Ratio Quick Ratio
  • 30. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Net Working Capital  While not technically a ratio, Net Working Capital (NWC) is a key element for internal control.  The higher this number the better.  NWC is found by subtracting current liabilities from current assets.  This is a sign of growing assets while keeping their liabilities stable.
  • 31. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Current Ratio  The Current Ratio is a direct evaluation of a company’s liquidity.  The higher this value, the more liquid a firm’s resources are.  Current Ratio is found by dividing current assets by current liabilities.  This could be improved by lowering the reliance on debt financing.
  • 32. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Quick Ratio  The Quick Ratio is comparable to the Current Ratio except that it takes inventory levels into consideration.  This is found by subtracting inventories from current assets and then dividing by current assets.
  • 33. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Activity Ratio Analysis  Activity Ratios are used to measure the speed with which accounts are converted into cash.  Activity Ratios include:  Inventory Turnover  Average Collection Period  Total Asset Turnover
  • 34. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Inventory Turnover Inventory Turnover is measurement of a firm’s inventory liquidity. This is found by cost of goods sold(COGS) by inventory. Generally a lower number is better.
  • 35. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Total Asset Turnover  Total Asset Turnover illustrates the firm’s ability and proficiency in using its assets to generated sales.  It is found by dividing sales by total assets, and is measured in times per year  When using cross-sectional analysis, a company must take special care in comparing Total Asset Turnover because new assets tend to have lower turnover.
  • 36. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Debt Ratio Analysis  A company’s debt position is a measure of how much of the firm’s profits are generated using money borrowed from other companies or individuals.  Debt Ratios include:  Financial Leverage Multiplier  Debt Ratio  Interest Coverage Ratio
  • 37. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Financial Leverage Multiplier The Financial Leverage Multiplier (FLM) is used to convert the company’s Return On Assets to its Return on Equity. This reflects the impact of leverage, or use of debt, on owners’ return. It is the ratio of total assets to stockholders’ equity.
  • 38. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Profitability Ratio Analysis  Profitability Ratios evaluate a company’s earnings with respect to sales, assets, owner’s investments and share values.  Profitability Ratios include  Gross Profit Margin  Operating Profit Margin  Net Profit Margin  Return on Total Assets  Return on Equity
  • 39. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Gross Profit Margin The Gross Profit Margin(GPR) is the percentage of each sales dollar that remains after the firm has paid for the goods sold. It is found by subtracting COGS from sales and dividing by sales.
  • 40. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Net Profit Margin Net Profit Margin(NPR), one of the most popular indicators of company health, measures the percentage of sales revenue remaining after ALL expenses are paid. NPR is found by dividing net profits by sales
  • 41. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Return on Total Assets Return of Total Assets(ROA), also known as return on investment, measures a firm’s effectiveness at generating profits with its assets. ROA is found by dividing the net profits after taxes by total assets.
  • 42. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES  Return on Equity  The Return on Equity(ROE) is extremely important to potential investors.  ROE is found by dividing net profit by owner’s equity.
  • 43. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC FINANCIAL ISSUES
  • 44. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC FINANCIAL ISSUES
  • 45. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC FINANCIAL ISSUES
  • 46. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC RESEARCH AND DEVELOPMENT (R & D) ISSUES 1. R & D Intensity, Technological Competence, and Technology Transfer -The Company must make available the resources necessary for effective research and development. A Company’s R & D intensity is a principal means of gaining market share in global competition. The amount spent on R & D often varies by industry. 2. R & D Mix - Basic R & D is conducted by scientists in well- equipped laboratories where the focus is on the theoretical problem areas. Product R & D- concentrates on marketing and is concerned with product or product packaging improvements 3. Engineering R & D - concerned with engineering, concentrating on quality control, and the development of design specifications and improved production equipment
  • 47. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC RESEARCH AND DEVELOPMENT (R & D) ISSUES Impact of Technological of Discontinuity on Strategy In the corporate planning process, it is generally assumed that incremental progress in technology will occur. But pass developments in a given technology cannot be extrapolated into the future because every technology has its limits. The key to competitiveness is to determine when to shift resources to a technology that has more potential.
  • 48. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC OPERATION ISSUES 1. Experience Curve - unit production costs decline by some fixed percentage each time the total accumulated volume of production units doubles 2. Flexible Manufacturing for Mass Customization – The use of Computer- Assisted Design and Computer-Assisted Manufacturing (CAD/CAM) and robot technology means that learning time is shorter and products can be manufactured in small, customized batches in a process call mass customization – the low cost production of individually customized goods and services.
  • 49. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC OPERATION ISSUES BUSINESS PROCESS AND OPERATION AirAsia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. The following shows the home page of AirAsia.com as the company key channel of marketing and sales.
  • 50. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC OPERATION ISSUES BUSINESS PROCESS AND OPERATION
  • 51. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC HUMAN RESOURCE (HRM) ISSUES 1. Increasing Use of Teams 2. Union Relations and temporary/Part- Time Workers 3. Quality of Work Life and Human Diversity 4. Impact on Performance 5. Supply Chain Management
  • 52. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC HUMAN RESOURCE (HRM) ISSUES 1. Increasing Use of Teams Teams Autonomous (self-managed)- a group of people working together without a supervisor to plan, coordinate and evaluate their work Cross-functional work teams- various disciplines are involved in a project from the beginning Concurrent engineering- specialists work side-by- side and compare notes constantly to design cost-effective products with features customers want
  • 53. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC HUMAN RESOURCE (HRM) ISSUES 1. Increasing Use of Teams Virtual Teams - groups of geographically or organizationally dispersed coworkers that are assembled using a combination of telecommunications and information technologies to accomplish organizational tasks.
  • 54. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC HUMAN RESOURCE (HRM) ISSUES 2. Union Relations and temporary/Part-Time Workers - If the corporation is unionized, a good human resource manager should be able to work closely with the union. To save jobs, Unions are increasingly willing to support new strategic initiatives and employee involvement. To increase flexibility, avoid layoffs, and reduce labor costs, corporations are using more temporary (also known as contingent) workers. 3. Quality of Work Life and Human Diversity -Human Resource departments have found that to reduce employee dissatisfaction and unionization efforts (or, conversely, to improve employee satisfaction and existing union relations), they must consider the quality of work life in the design of jobs. To Improve the corporation’s quality of work life by (1) Introducing participative problem solving (2) Restructuring Work, (3) Introducing innovative reward systems, and (4) improving the work environment Human Diversity refers to the mix in the workplace of people from different races, cultures, and backgrounds.
  • 55. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES  STRATEGIC HUMAN RESOURCE (HRM) ISSUES 4. Impact on Performance – A current trend in corporate information systems/ technology is the increasing use of the internet for marketing, intranets for internal communication, and extranets for logistics and distribution. INTRANET – is an information network within an organization that also has access to the external worldwide Internet. EXTRANET – is an information network within an organization that is available to key suppliers and customers. 5. Supply Chain Management - is the forming of networks for sourcing raw materials, manufacturing products or creating services, storing and distributing the goods, and delivering them to customers and consumers.
  • 56. SCANNING FUNCTIONAL RESOURCES AND CAPABILITIES STRATEGIC HUMAN RESOURCE (HRM) ISSUES Evaluate people and partners in AirAsia The AirAsia Team have highly competitive and attractive compensation packages. In order to provide customer excellent service, AirAsia arrange a series of training course to their in-house flight attendant. The training courses include awareness on safety standards, aviation terminology, in flight service procedures, product knowledge and so on. AirAsia chose many kinds of field partners as their complementors. Their partnership can divide into two main kinds: direct partners and indirect partners. Direct partners have strong relationship with the airline, for example, hotels, travel agencies and so on. And indirect partner included Facebook, Twitter Koolred and Youtube. AirAsia is company which rely on Internet a lot so with those communities, AirAsia can build strong connection with their customers
  • 57. THE STRATEGIC AUDIT : A CHECKLIST FOR ORGANIZATIONAL ANALYSIS  STRENGTHS AND WEAKNESSES (SWOT) – When all the factors related with internal analysis ascertained (management, marketing, financial and operation/production), the organisation is then able to see its position more clearly. In addition, the company’s strengths and weakness can also be identified.
  • 58. THE STRATEGIC AUDIT : A CHECKLIST FOR ORGANIZATIONAL ANALYSIS AirAsia SWOT Analysis Strengths • Low cost operations • Fewer management level, effective, focused and aggressive management • Simple proven business model that consistently delivers that lowest fares • Penetrate and stimulate to potential markets • Multi-skilled staffs means efficient and incentive workforce • Single type fleet minimize maintenance fee and easy for pilot dispatch Weaknesses • Service resource is limited by lower costs • Limited human resources could not handle irregular situation • Government interference and regulation on airport deals and passenger compensation • Non-central location of secondary airports • Brand is vital for market position and developing it is always a challenge • Heavy reliance on outsourcing • New entrants to provide the price-sensitive services www.themegallery.com Company Logo
  • 59. SYNTHESIS OF INTERNAL FACTORS INTERNAL FACTOR ANALYSIS SUMMARY (IFAS)
  • 60. LOGO Click to edit company slogan .
  • 61. INTERNAL STRATEGIC FACTORS Strength Weakness Low cost carrier Service resource is limited by lower costs First mover advantage (first Limited human resources low cost airline in Asia) More seats per aircraft Regulation on airport Single type fleet minimize Complaints from customers maintenance fee (flight delays) Reduced staff numbers Brand name
  • 62. RESOURCES, CAPABILITIES, COMPETENCIES Resources Constructive and supportive management Highly skilled employees Capabilities to reduce cost Capabilities Quick turnaround time Low-cost short haul High rate aircraft utilization Competencies The strategic decision in using one type of aircraft The synergy between AA management and its employees The capabilities themselves