Slide 1

The internal assessment (strengths and weaknesses)

Management

Planning: preparing for the future, forecasting, establishing objectives, devising strategies, developing policies and procedures

Organizing: Structure of task and authority relationship, job description, span of control etc.

Motivating: Efforts directed toward shaping human behavior. Leadership, communication, work groups, organizational change, delegation of authority etc.

Staffing: human resource management

Controlling: all activities to ensure actual results conforming to expected. All control measures

Management audit checklist

Does the firm use strategic management concept?

Are company objectives and goals measurable and well communicated?

Do managers at all levels plan effectively?

Do managers delegate authority well?

Is the organizations structure appropriate?

Are job descriptions and job specification clear?

Is employee morale high?

Are employee turnover and absenteeism low?

Are organizations reward and control mechanism effective?

Marketing

Customer analysis: is the firm well positioned when compared with competitors?Selling products and services Advertising, Personal selling, sales promotion, sales managementProduct and service planning: test marketing, product and brand positioning, product decisionsPricing; depends on consumers, government, suppliers, distributors, and competitors.Marketing researchDistribution: ware housing, Channels, Distribution coverage, Inventory levels, sales territories etc.

Checklist

Are markets segmented effectively?Is the firm well positioned with respect to competitors?Has the firms market share been increasing?Are present channels of distribution reliable and cost effective?Does the firm have an effective sales organization?Does the firm conduct market research?Does the firm have an effective sales promotion and advertising &publicity strategy?Do the marketing managers have adequate training and experience/

Finance / accounting functions: Liquidity, leverage, Working capital, profitability, asset utilization, cash flow , equity

Financial ratio analysis

Investment decisions

Dividend decisions

Finance checklist

Where is the firm financially strong and weak?Can the firm raise the needed short term capital?Can the firm raise the needed long term capital through debt or equity/Does the firm have sufficient working capital?Are capital budgeting procedures effective/Are dividend payout policies reasonable/Does the firm have good relations with investors and shareholders/Are the firms financial managers well experienced AND TRAINED/

PRODUCTION? OPERATIONS

ProcessCapacityInventoryWorkforceQuality

Checklist

Are suppliers of raw materials etc, reliable and reasonable?Are facilities equipment, machinery and offices in good condition?Are quality control procedures effective?Are facilities, markets, and resources well located?Does the firm have technological competency?Are inventory control procedures effective?

Internal factor evaluation matrix (IFEM)

List key internal factors, including strengths and weaknessesAssign weights ranging from 0 to 1Assign rating from 1 to 4 depending on whether that factor is a strength or weaknessMultiply each factors weight by its rating to determine a weighted score for each variableSum the weighted score for each variable to determine the total weighted score for the firm

Internal strength weight rating weighted score

Internal weakness