overview on when to use environmental analysis; Assessment of the Internal factors of PANELCO III (management audit, functional departmental areas; organizational core values and illustration of S-W

1. Module 4: Internal Environment Analysis
Strengths and Weaknesses
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Alexander Iluis and Elmer Aquino
Reporters/Discussants
DM 214 Strategic Planning
PROF. Josefina B. Bitonio, DPA

2. Overview:
An Environment Analysis is
commonly used in organization in
general as a method of identifying
opposition for a new venture or
strategy. This allows professionals to
identify all of the positive and negative
elements that may affect any new
proposed actions.
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3. aailuis
Definition:
Environmental Analysis is
meant to act primarily as an
assessment technique,
though its lengthy record of
success among many
organizations makes it an
invaluable tool in project
management.

4. Purpose:
The Environment Analysis enables
cooperatives/business to identify the positive and
negative influencing factors inside of a company or
organization. Besides businesses, cooperatives,
other organizations, in areas such as community
health and development and education have
found much use in its guiding principles. The key
role of Environmental Analysis is to help develop a
full awareness of all factors that may affect
strategic planning and decision making, a goal that
can be applied to most any aspect of industry.
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5. Environmental
Analysis is meant to be
used during the proposal
stage of strategic planning.
It acts as a precursor any
sort of company action,
which makes it appropriate
for the following moments:
When to use Environmental Analysis :

6. Exploring avenues for new
initiatives
Making decisions about
execution strategies for a new
policy
Identifying possible areas for
change in a program
Refining and redirecting
efforts mid-plan

7. Environment
Values

8. Environmental Analysis Internal
Factors:
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Environmental Analysis Internal
factors refer to Strengths and
Weaknesses, which mean the
resources and experience readily
available to you. These two factors
focus on how to allow the
organization to identify the forces
influencing a strategy, action, or
initiative. Knowing these positive and
negative impacting factors can help
organization more effectively
communicate what factors of a plan
need to be recognized.

9. Financial resources, such as funding, sources of
income and investment opportunities.
Physical resources, such as your company’s
location, facilities and equipment.
Human resources, such as employees,
volunteers and target audiences.
Current processes, such as employee programs,
department hierarchies and software systems
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Examples of areas typically considered include:

10. When it comes to listing
strengths and weaknesses,
individuals shouldn’t try to over
inherent weaknesses or
strengths. Identifying factors both
good and bad is important in
creating a thorough Internal
Environment Analysis
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11. The Internal Environment Analysis is a simple,
although comprehensive strategy in identifying not only
the weaknesses of a plan, but also the strengths
available through it. While an excellent brainstorming
tool, the two-cornered analysis prompts entities to
examine and execute strategies in a more balanced way.
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12. In this assessment it focuses on identifying and
evaluating the Strengths and Weaknesses of PANELCO
III in each functional areas of operations. These
include the Financial, Institutional and Technical
systems.
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Assessment of the Internal Environment Factors of
PANELCO III

13. A.) Management Audit
1.) Planning
2.) Organizing
3.) Motivating
4.) Staffing
5.) Controlling
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14. Planning – work planning has been part of
PANELCO III’s existence. From the vision and mission of
the Cooperative, objectives from all levels of the
organization are formulated which serve as guide for
Division Supervisors and Department Managers to
effectively prepare their work plans.

15. Organizing is the function of
management which follows planning. It is a
function in which the synchronization and
combination of human, physical and
financial resources takes place. All the three
resources are important to get results.
Therefore, organizational function helps in
achievement of results which in fact is
important for the functioning of a concern.
According to Chester Barnard, “Organizing is
a function by which the concern is able to
define the role positions, the jobs related
and the co- ordination between authority
and responsibility. Hence, a manager always
has to organize in order to get results.
Source: http://managementstudyguide.com/organizing_function.htm

16. Source: http://www.megaessays.com/viewpaper/7485.html
What is Motivation Why is it
important in management?
Motivation is what we call our driving
force, our ‘get up and go’. It stimulates
our senses into the achievement of
goals that have been set out for us.
Its ability to shape the workforce into
its own driving force is what becomes
important to the success of work
organizations. The meaning of
motivation is tending to initiate
motion; power; that which induces a
person to act eg: desire, fear, and
circumstance. (Oxford Dictionary,
1987)
Are the CREATOR of your
own destiny

17. Staffing – Policies are implemented for an
effective human resource management such as
Hiring and Recruitment procedures, Guidelines
on Promotion and Transfer, Wage and Salary
Administration, Manpower Placement
Procedures as well as the Code of Employees
Discipline. Scholarship grants are open to all
qualified employee for career advancement.
Employees are sent to trainings and workshops
for their continuing development.

18. Controlling - Evaluation tools
used are Performance Evaluation Sheets
and Monthly Accomplishment Report.

19. 1.) Financial
- The Finance Department: is
responsible for the overall effective
discharge of accounting, cashiering and
assists the management in the
formulation and implementation of
sound relevant and effective financial
programs, plans, policies, decisions and
actions thorough the exercise of good
advisory judgment and submission of
timely comprehensive verbal and written
reports.
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B.) Functional Departmental Areas of
PANELCO III

20. 2.) Institutional
- The Institutional Department is similar to
the Marketing Department of an organization. It
is responsible in planning, development and
implementation of promotional or image-building
programs, training & information strategies,
power use and load development programs and
general membership affairs as well as the orderly
conduct of Board of Directors elections.
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21. 3.) Technical
- System loss reductions remains
to be the major program given focus by
the management. The curb perennial
problem on high system loss
( technical and non-technical) the
Engineering Services Department has
embarked on the improvement of
System Power Factor thereby reducing
and reactive energy in the system and
will augment the distribution reliability
which will reduce system’s loss. The
replacement and relocation of KWH
meter’s will positively reduce the
incidence of power pilferages with in
the area, similarly, the implementation
of the pole block metering will help our
anti-pilferages drive.
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22. aailuis
C.) Organizational Core Values
Every company has a unique values, beliefs and best
practices (Thompson and Strickland 2003). We at PANELCO III
upholds the following core values:
1.) Honesty ; 2.) Unity; 3.) Dedication and
Commitment and
4.) Thrift

23. - In summarizing and evaluating
the major strengths and weaknesses in
the functional departments of PANELCO
III, the Internal Factors Evaluation (IFE)
Matrix is used. Intuitive judgements in
developing an IFE matrix. An IFE Matrix
can be developed in five steps.
1.) List the key internal factors as
identified in the internal audit process.
List strengths first and then weaknesses.
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D.) Internal Factors Evaluation to PANELCO III

24. 2.) Assign a weight that ranges from 0.0 (not
important) to 1.0 (all important) to each
factor. The weight assigned to a given
factors indicate the relative importance
of the factor to being successful in the
firm’s
3.) Assign a 1 to 4 to each factor to indicate
whether that factor represents a major
weakness (rating = 1), minor weakness (
rating = 2), minor strength (rating = 3),
major strength (rating = 4). Strengths and
Weakness must receive a 1 or 2 rating .
Rating are company based while industry
–based.
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25. 4.) Multiply each factors weight by its rating to
determine its weighted score for each
variable.
5.) Sum the weighted scores for each variable to
determine the total weighted score for the
organizational (David, 2005 p147).
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26. WEIGTHRATING WEIGHTED SCORE
0.10 3.00
0.12 4.00
0.15 4.00
0.10 3.00
0.13 4.00
0.05 1.00
0.10 1.00
0.05 2.00
0.10 1.00
0.10 2.00
1.00
0.20
2.75
collection period (30)
WEAKNESSES
0.05
0.10
0.10
0.10
0.30
0.48
0.60
0.30
0.52
Total
1. Limited internally - generated funds
2. High operating cost
3. Collection days (48) is above the prescribed
4. System loss above the prescribed 13% SL Cap
5. Weak corporateidentity and culture
STRENGTHS
1. Advancement on information system
2. Regular work planning and controlling
3. Sole distributor of electric service in eastern pangasinan
4. Prompt payments to supliers
5. Experienced and capable workforce

27. Survey Among the Students of
DM 213 Strategic Planning
Class

28. Strengths Actual Survey Variant Rating Actual Survey
Sole Distributor in Eastern
Pangasinan 0.14 0.19 0.05 4 0.06 0.76
Experienmce and capable workforce 0.09 0.15 0.06 4 0.03 0.06
Advancement In Information System 0.14 0.13 0.01 3 0.03 0.39
Prompt payment to suppliers 0.14 0.13 0.01 3 0.1 0.09
Weakness 0.51 0.6 0.22 1.3
High operating costs 0.08 0.08 0 1 0.1 0.08
Collection days non conformance 0.03 0.08 0.05 1 0.1 0.08
System loss non conformance 0.08 0.08 0 1 0.1 0.08
Limited internally generated funds 0.03 0.07 0.04 1 0.05 0.07
Not regular planning and controlling 0.1 0.05 0.06 2 0.48 0.1
Weak corporate identity and culture 0.08 0.04 0.04 2 0.02 0.08
0.4 0.4 0.085 0.49
TOTAL 0.305 1.79
1 majorj weakness
2 minor weakness
3 minor strength
4 major strnegth

30. aailuis
on your
your
Reporters: Alexander A. Iluis/Elmer Aquino

31. References:
• http://mystrategicplan.com/resources/in
ternal-and-external-analysis/
• http://www.businessnewsdaily.com/424
5-swot-analysis.html
• Strategic Planning of PANELCO III FY2010-
2011
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