OB lecture 8 business strategy internal audit

1. culture Innovative Bureaucratic 2. management Planning Organizing Motivating Staffing Controlling 3. marketing Customers Analysis ProductsServices Pricing Distribution Market Research 4. financial Horizontal Analysis Competitors or Industrial Average

Lecture 8

Internal Audit

Unit 7 Business Strategy

1 Culture

• Innovative

• Bureaucratic

1.0 Culture

A

E

F

D

C B

“System”, very difficult to move

2.0 Management

• Planning

• Organizing

• Motivating

• Staffing

• Controlling

3.0 Marketing

1 Customers Analysis

2 Products/Services

3 Pricing

4 Distribution

5 Market Research

4.0 Financial

• Horizontal Analysis

• Competitors or Industrial Average

4.0 Financial

Profitability

1 Gross Profit Margin, Net Profit Margin

Assets Utilization

2 ROA, ROE

3 Assets Turnover

Leverage

4 Debt to Equity Ratio

5 Times Interest Earned Ratio

Investment

6 Earning Per Share

5.0 Operation

6.0 Research and Development

Alternative Approach

BPP Text Book

I Limiting Factors

1 Shortage of production capacity

2 Restricted distribution network

3 Poor marketing intelligence

4 Lack of money

5 Adequately trained staff

6 Incompetent managers

II Core Competencies

e.g IKEA

Design

Purchasing

Store management

Value Chain

Value Chain Michael Porter

Primary Activities

1.Inbound Logistics

2.Operation /Manufacturing

3.Outbound Logistics

4.Marketing and Sales

5.Service

Value Chain Michael Porter

Supporting Activities

1.Firm Infrastructure

2.Human Resources Management

3.Technology Development

4.Procurement

Value Chain

Competitive advantage stems from the many activities a firm perform

1996

1.0 Introduction

2.0 Vision and Mission

3.0 Stakeholders

4.0 Environmental Audit

4.1 PESTEL

4.2 Porter’s Five Forces

4.3 Clusters

4.4 External Threat and Opportunities 5.0 Internal Audit

5.1

5.2

5.3 Internal Strengths and Weaknesses

Key Internal Factors

Strengths

1.

2.

3.

4.

5.

.

10.

Weaknesses

1.

2.

.

10

End