Internal Evaluation Pt.5
Internal Evaluation Pt.5
Internal Evaluation Pt.5
Internal Environment
MBA Toolbox
Internal Analysis
Resource Audit
HR
Operations
Marketing
Value Chain
Value System
McKinsey 7S Framework
VRIO Framework
Core Competencies
Distinctive Capabilities
Portfolio Evaluation
Generic Strategies
Leadership and Culture (7S)
Business Expansion Matrix
Financial Analysis
Strengths and Weaknesses (SWOT)
FINANCIAL PERFORMANCE
INDICATORS
• The financial performance of a company
should be assessed comparing the
company’s performance over time and
with similar firms in the industry
(internal and external benchmarking).
• Ratios are usually used to achieve this
comparison.
3
Ratios
4
5
Ratios
http://www.investopedia.com/university/ratios/
6
Financial Discussion
• Highly geared leads to high proportion of debt with risks e.g. risk of not
being able to meet payments.
• Low gearing leads to under investment, low growth, debt not used
efficiently, competitors can overtake the company if they are prepared to
borrow, therefore company will lose market share if not prepared to
expand.
7
Prakash Doubles Ltd.
8
Financial Analysis
9
Putting it all
together...
10
Evaluating
Strategic Fit
Strategic Fit
Produce a SWOT analysis
13
MBA Toolbox
Environmental Analysis
Resource Audit
HR
Operations
Marketing
Value Chain
Value System
McKinsey 7S Framework (Leadership and Culture)
VRIO Framework
Core Competencies
Distinctive Capabilities
Portfolio Evaluation
Generic Strategies
Financial Analysis
Strategic Options / Business Expansion Matrix
SWOT Analysis
16
17
EVR Congruence
(THOMPSON and MARTIN, 2001)
18
NFP... FP...
19
Is the
Strategic Framework
appropriate?
20
Strategic Fit Review
Produce a SWOT analysis
22
TOWS Matrix
Weihrich, H., (1982) The TOWS Matrix - A Tool for Situational Analysis. LONG RANGE PLANNING, Vol. 15, No. 2, 1982, pp. 54-6
Assignment Progress