1. Internal Scanning Organizational Analysis
Chapter 4

2. Chapter Objectives how to scanning internal environment
After finish this chapter student will able:
how to scanning internal environment
to assess organization capability with Business function analysis, Core competency analysis and Value chain analysis.
use SWOT analysis to develop strategy.

3. Nature of an Internal Audit
-Besides watching External Environment (Chapter 3) the companies should examine the competitiveness and performance of the firm operations.
Basis for objectives and strategies
-Understand Internal strengths and weaknesses
-Understand External opportunities and threats
-a Clear statement of mission

4. Key Internal Forces- Core competency analysis
Distinctive Competencies
-A firm’s strengths that cannot be easily matched or imitated by competitors.
-Building competitive advantage involves taking advantage of distinctive competences.
-Strategies designed in part to improve on a firm’s weaknesses and turn to strengths.

5. Key Internal Forces- Business function analysis
Functional business areas
-Vary by organization
-Divisions have differing strengths and weaknesses
Similar to process of external audit. Gather and assimilate information from:
-Management/Marketing
-Finance/accounting
-Production/operations
-Research and development
-Management information systems.

6. *key to organizational success:
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.
*key to organizational success:
- Coordination and understanding among
managers from all functional areas

7. Functions of management
Stage When Most Important
Function
Planning
Strategy Formulation
Organizing
Strategy Implementation
Motivating
Strategy Implementation
Staffing
Strategy Implementation
Controlling
Strategy Evaluation

8. Functions of Marketing
Process of defining, anticipating, creating, and fulfilling customers’ needs and wants for products and services
Customer analysis
Selling products/services
Product and service planning
Pricing
Distribution
Marketing research
Opportunity analysis

9. Functions of Finance/Accounting
Determining financial strengths and weaknesses key to strategy formulation
Investment decision (Capital budgeting)
Financing decision
Dividend decision

10. Functions of Production/Operation
Process
Capacity
Inventory
Workforce
Quality

11. Functions of Research and Development
Development of new products before competition
Improving product quality
Improving manufacturing processes to reduce costs

12. Functions of Management Information Systems
Purpose –
Improve performance of an enterprise by improving the quality of managerial decisions.
Information Systems
Security
User-friendly
E-commerce

13. Key Internal Forces- Porter’s Value Chain
Value chain analysis is a systematic tool to analyze the interaction among all activities a firm performs.
This concept divides a company’s activities in to 2 main activities (5 primary and 4 support activities).

15. SWOT analysis
is a tool to classify the environment affecting the organization. it identifies internal and external factors whether they are favorable and unfavorable.
SWOT come from:
Strength- organization’s strong points.
Weakness- organization’s weak points
Opportunities- events support org.
Threats – are unfavorable situation.

16. Improvement, Protection
Advantage
Disadvantage
Internal Environment
Strength
Weakness
External Environment
Opportunities
Threats
Strategic actions
Competitiveness
Improvement, Protection

17. Group discussion
Break class into group
Do SWOT analysis on BBU BM