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The Internal Assessment: Strategic Management: Concepts & Cases 13 Edition Fred David
The Internal Assessment: Strategic Management: Concepts & Cases 13 Edition Fred David
Strategic Management:
Concepts & Cases
13th Edition
Fred David
Internal strengths/weaknesses
External opportunities/threats
Clear statement of mission
Distinctive Competencies:
Distinctive Competencies:
Involvement in performing an
internal strategic-management audit
provides a vehicle for understanding
the nature and effect of decisions in
other functional business areas of
the firm
Exemplifies complexity of
relationships among functional areas
of the business
1. Physical resources
2. Human resources
3. Organizational resources
Empirical Indicators
Rare
Hard to imitate
Not easily substitutable
Organizational Culture
Pattern of behavior developed by an
organization as it learns to cope with its
problem of external adaptation and
internal integration . . . is considered valid
and taught to new members as the correct
way to perceive, think, and feel
Organizational Culture
Resistant to change
May represent:
Strength
Weakness
Values
Legends Beliefs
Heroes
Cultural Rites
Products
Symbols Rituals
Myths
Functions of Management
1. Planning
2. Organizing
3. Motivating
4. Staffing
5. Controlling
Copyright © 2011 Pearson Education, Inc. Ch 4 -20
Publishing as Prentice Hall
Management
Stage When Most
Function Important
Planning Strategy Formulation
Planning
Developing a mission
Choosing strategies to
pursue
Synergy
Organizing
departments
Delegating authority
Staffing
Personnel management
Human resource management
Controlling
1. Defining
2. Anticipating
3. Creating
4. Fulfilling
Copyright © 2011 Pearson Education, Inc. Ch 4 -35
Publishing as Prentice Hall
Marketing
Marketing Functions
1. Customer analysis
2. Selling products/services
4. Pricing
5. Distribution
6. Marketing research
7. Opportunity analysis
Customer surveys
Consumer information
Market positioning
Customer
strategies
Analysis
Customer profiles
Market segmentation
strategies
Advertising
Sales Promotion
Publicity
Selling
Products/Services Personal Selling
Sales force management
Customer relations
Dealer relations
Test marketing
Brand positioning
Devising warranties
Packaging
Product/Service Product features/options
Planning Product style
Quality
Deleting old products
Providing for customer
service
Consumers
Governments
Pricing
Suppliers
Major Stakeholders Distributors
Competitors
Warehousing
Distribution channels
Retail site locations
Distribution Sales territories
Inventory levels
Transportation
Wholesaling
Retailing
Gather data
Analyze data
Assessing costs
Assessing risks
3. Dividend decision
Liquidity Ratios
Ratios
Current ratio
Quick (or acid test) ratio
Ratios
Leverage Ratios
Debt-to-total assets
Debt-to-equity
Long-term debt-to-equity
Times-interest-earned
Ratios
Activity Ratios
Inventory turnover
Fixed assets turnover
Total assets turnover
Accounts receivable turnover
Average collection period
Effectiveness shown by
returns on sales and
investment
Effectiveness shown by
returns on sales &
investment
Firm’s ability to
maintain economic
position
Ratios
Growth Ratios
Sales
Net Income
Earnings per share
Dividends per share
Production/Operations Functions
Process
Capacity
Inventory
Workforce
Quality
••Are
Are suppliers
suppliers of of materials,
materials, parts,
parts, etc.
etc.
reliable
reliable and
and reasonable?
reasonable?
••Are
Are facilities,
facilities, equipment,
equipment, machinery,
machinery, andand
offices
offices in
in good
good condition?
condition?
••Are
Are inventory-control
inventory-control policies
policies and
and
procedures
procedures effective?
effective?
••Are
Are quality-control
quality-control policies
policies && procedures
procedures
effective?
effective?
••Are
Are facilities,
facilities, resources,
resources, and
and markets
markets
strategically
strategically located?
located?
••Does
Does the
the firm
firm have
have technological
technological
competencies?
competencies?
Use percent-of-sales
method
R&D Budgets
Budgeting relative to
competitors
••Are
Are the
the R&D
R&D facilities
facilities adequate?
adequate?
••IfIf R&D
R&D is
is outsourced,
outsourced, is is itit cost-effective?
cost-effective?
••Are
Are the
the R&D
R&D personnel
personnel wellwell qualified?
qualified?
••Are
Are R&D
R&D resources
resources allocated
allocated effectively?
effectively?
••Are
Are MIS
MIS and
and computer
computer systems
systems
adequate?
adequate?
••Is
Is communication
communication between
between R&DR&D and
and
other
other organizational
organizational units
units effective?
effective?
••Are
Are present
present products
products technologically
technologically
competitive?
competitive?
Purpose
Improve performance of an
enterprise by improving the quality
of managerial decisions
Core competencies
Distinctive competencies
Benchmarking
Value
Value Some
Some
Chain
Chain Some
SomeCore
Core Distinctive
Distinctive
Core
Core
Activities
Activities Competencies
Competencies Competencies
Competencies
Competencies
Competencies
Are
Are Evolve
Evolveinto
into Yield
Yield
Arise
AriseininSome
Some
Identified
Identified Distinctive
Distinctive Sustained
Sustained
Activities
Activities
and
and Competencies
Competencies Competitive
Competitive
Assessed
Assessed Advantages
Advantages