INTERNAL ANALYSIS class

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INTERNAL ANALYSIS class
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SWOT

• The Purpose of SWOT is twofold
• It seeks to identify the most significant factors
  both internal and external , affecting the
  organization and its markets
• Looking at where strengths and weaknesses align
  with opportunities and threats

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Figure 2.8 SWOT analysis
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Figure 2.9 SWOT strategic implications
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Key Internal Forces
Distinctive Competencies

• Firms strengths that cannot be easily matched or
  imitated by competitors

• Building competitive advantage involves taking
  advantage of distinctive competencies

• Strategies designed to improve on a firms
  weaknesses and turn to strengths

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Internal Audit
Involvement in performing an internal
strategic-management audit provides vehicle for
understanding nature and effect of decisions in
other functional business areas of the firm
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Internal Audit SW Analysis
Firms Functional Areas
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Management Audit Checklist

• Organization
• Objectives and Goals
• All levels plan
• Structure
• Human resource
• Employee
• Rewards system

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Marketing Audit Checklist

• STP
• Marketing Mix
• Marketing Team
• Marketing Budget

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Finance/Accounting
Determining financial strengths weaknesses key
to strategy formation

• Financial Ratios
• Short-term capital
• Long-term capital
• Debt/Equity
• Working capital
• Dividend payout
• Experienced financial mgr.

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Production Audit

• RM
• Facilities, Machinery
• Inventory control
• QA
• Technology in production

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Research Development Audit

• Own RD
• Laboratories
• Outsources
• Budget
• R D staff

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Environment stability
Table 3.1 Determinants of environmental
turbulence
MKT 4725 Competitive Analysis and Strategy
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Figure 3.9 Environmental turbulence Source
Based on Ansoff (1984) Figure 3.4.5, p. 222
http//www.ansoffasia.com/article002.pdf
MKT 4725 Competitive Analysis and Strategy
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Table 3.2 SPACE analysis components
MKT 4725 Competitive Analysis and Strategy
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SPACE analysis map
Financial Strength
COMPANY DIMENSIONS
Conservative
Aggressive
b
Competitive Disadvantage
a
A
Industry Strength
Strategic postures
B
INDUSTRY DIMENSIONS
Competitive
Defensive
Environmental Stability
MKT 4725 Competitive Analysis and Strategy
Source Based on Rowe et al (1989) Exhibit 6.10,
p145
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Workshop

• Space analysis

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Brand Portfolio Structure
Brand Portfolio Structure

• Brand Grouping Grouping of brands that have a
  meaningful characteristics in common
• Segment Men or women
• Product Clothing or products
• Quality Designer to premium
• Design classic or contemporary

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MKT4725
Company Logo
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Workshop

• Brand Portfolio

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Example
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Example
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Workshop

• IFE matrix
• 1 Major weakness
• 2 Minor weakness
• 3 Minor strength
• 4 Major strength