January 26, 2023

INTERNAL ASSESSMENT
Session 4
Professor Hilda L. Teodoro
Ateneo Graduate School of Business
 Internal Assessment

A comprehensive and thoughtful examination of

the current state of an organization which defines
its capacity for succeeding in its environment.

Identification of the organization’s strengths and

weaknesses

HILDA L. TEODORO ATENEO GRADUATE SCHOOL 2

OF BUSINESS
 Culture Checklist

Guide Questions:
1. How clearly are the organization’s values and norms
enunciated and practiced in the entire organization?
2. What stories, rituals, symbols, heroes illuminate the
culture of the organization?
3. Does the current culture support the organization’s
strategy?

HILDA L. TEODORO ATENEO GRADUATE SCHOOL 3

OF BUSINESS
 Management Checklist
Guide Questions:

1. Is the organization’s set of vision/mission and

strategy clear to all the employees in the
organization?
2. Are these appropriate given current situation?
3. Are company objectives and goals measurable and
well communicated?
4. Are the physical structures and facilities appropriate
for the effective functioning of the organization?
5. Is the organization’s structure appropriate?
6. Is employee morale high?
7. Are employee turnover and absenteeism low?

HILDA L. TEODORO ATENEO GRADUATE SCHOOL 4

OF BUSINESS
 Management Checklist

Leadership Styles Competence

Guide Questions:

1. 1. How would you describe the leadership style in the

organization?
2. 2. How effective is this in steering the organization
towards its goals?
3. 3. What can you say about the level of competence of
the leaders ( i.e. top, middle and first line ) in
managing the organization?
4. Do managers at all hierarchical levels plan effectively?
5. Do managers delegate authority well?
HILDA L. TEODORO ATENEO GRADUATE SCHOOL 5
OF BUSINESS
 Marketing Checklist
Market segments Distribution channels Customer service
Positioning Sales organizations Product pricing
Market share growth Market research Market budgets

Guide Questions:
1. Are marketing planning and budgeting effective?
2. Do the firm’s marketing managers have adequate
experience and training
3. Does the firm conduct market research?
4. Are product quality and customer service good?
5. Are the firm's products/services priced appropriately?
6. Does the firm have an effective promotion, advertising,
and publicity strategy?
HILDA L. TEODORO ATENEO GRADUATE SCHOOL 6
OF BUSINESS
 Financial Checklist
Financial strength Working capital Investor relations
Short-term funding Capital budgeting Training
Long-term capital Dividends
Guide Questions:
1. Where is the firm strong and weak as indicated by
financial ratio analysis?
2. Are capital budgeting procedures effective?
3. Does the firm have good relations with its investors
and stockholders?
4. Are the firm’s financial managers experienced and well
trained?

HILDA L. TEODORO ATENEO GRADUATE SCHOOL 7

OF BUSINESS
 Financial Ratios
Firm’s ability to Current ratio
Liquidity ratios meet its short- Quick ratio (or acid-test)
term obligations

Extent of debt Debt-to-total-assets

Leverage financing Long-term debt-to-equity
ratios

Effective use of Accounts receivable turnover

Activity ratios firm’s resources Inventory-turnover
Total assets turnover

Profitability Effectiveness Gross profit margin

ratios shown by returns Operating profit margin
on sales and
Net profit margin
investment
Return on total assets (ROA)
Return on stockholders’ equity (ROE)
Earnings per share
Growth ratios Firm’s ability to Sales
maintain Net income
HILDA L. TEODORO
economic position Return onSCHOOL
ATENEO GRADUATE 8
OF BUSINESS equity
 Production Checklist
Suppliers Quality control
Facilities and equipment Location
Inventory control Technological competencies
Guide Questions:
1. Are suppliers of raw materials, parts, and
subassemblies reliable and reasonable?
2. Are facilities, equipment, machinery, and offices in
good condition?
3. Are inventory-control policies and procedures
effective?
4. Are quality-control policies and procedures effective?
5. Are facilities, resources, and markets strategically
located?
6.HILDA
Does the firm have
L. TEODORO technological
ATENEO competencies?
GRADUATE SCHOOL 9
OF BUSINESS
 R & D Checklist
Development of new products before competition
Improving product quality
Improving manufacturing processes to reduce costs
Guide Questions:
1. Does the firm have R&D facilities? Are they adequate?
2. If outside R&D firms are used, are they cost effective?
3. Are the organization’s R&D personnel well qualified?
4. Are R&D resources allocated effectively?
5. Is communication between R&D and other
organizational units effective?
6. Are present products technologically competitive?

HILDA L. TEODORO ATENEO GRADUATE SCHOOL 10

OF BUSINESS
 MIS Checklist

Computer utilization Data sufficiency

MIS organization and controls Training
Guide Questions:
1. Do all managers in the firm use the information system
to make decisions?
2. Is there a chief information officer or director of
information systems position in the firm?
3. Are data in the information system updated regularly?
4. Do managers from all functional areas of the firm
contribute input to the information system?
5. Is the information system user-friendly and updated?
6. Are computer training workshops provided for users?
HILDA L. TEODORO ATENEO GRADUATE SCHOOL 11
OF BUSINESS
 List key Assign to Assign a 1-4
internal
factors IFE each factor a
weight
rating

RAT- WTD
KEY INTERNAL FACTORS FUNCTION WT
ING SCORE
       
STRENGTHS
1. Strong ethical culture Multiply Culture .05 4 .20
each factor
2. Good corporate image by its rating Mgmt .10 3 .30

3. Only coxib with migraine indication Marketing .15 4 .60

4. Most cost effective among all coxibs Marketing .05 3 .15

5. Highly motivated sales force Marketing .15 4 .60

6. Strong R&D background R&D .05 4 .20

  0   0
WEAKNESSES
1. Lack of promotional resources. Marketing .10 1 .10
Sum the
2. weighted
Weak presence with General Practitioners Marketing .15 2 .30
scores
3. Slow growth rate in sales, EBIT and ROE Finance .05 2 .10
Operation
4. Operational efficiency issue .15 2 .30
s
HILDA L. TEODORO ATENEO GRADUATE SCHOOL     12
TOTAL OF BUSINESS 1 2.85