Ateneo ife

April 8, 2023

INTERNAL ASSESSMENT Session 4

Professor Hilda L. TeodoroAteneo Graduate School of Business

2 HILDA L. TEODORO ATENEO GRADUATE SCHOOL OF BUSINESS

Internal AssessmentInternal Assessment

A comprehensive and thoughtful examination of the current state of an organization which defines its capacity for succeeding in its environment.

Identification of the organization’s strengths and weaknesses


Guide Questions:

1. How clearly are the organization’s values and norms enunciated and practiced in the entire organization?

2. What stories, rituals, symbols, heroes illuminate the culture of the organization?

3. Does the current culture support the organization’s strategy?

Culture ChecklistCulture Checklist


Management ChecklistGuide Questions:

1. Is the organization’s set of vision/mission and strategy clear to all the employees in the organization?

2. Are these appropriate given current situation?3. Are company objectives and goals measurable and

well communicated?4. Are the physical structures and facilities appropriate

for the effective functioning of the organization?5. Is the organization’s structure appropriate?6. Is employee morale high?7. Are employee turnover and absenteeism low?


Leadership Styles Competence

Guide Questions:

1. 1. How would you describe the leadership style in the organization?

2. 2. How effective is this in steering the organization towards its goals?

3. 3. What can you say about the level of competence of the leaders ( i.e. top, middle and first line ) in managing the organization?

4. Do managers at all hierarchical levels plan effectively?5. Do managers delegate authority well?

Management Checklist


Market segments

Positioning

Market share growth

Guide Questions:1. Are marketing planning and budgeting effective?

2. Do the firm’s marketing managers have adequate experience and training

3. Does the firm conduct market research?

4. Are product quality and customer service good?

5. Are the firm's products/services priced appropriately?

6. Does the firm have an effective promotion, advertising, and publicity strategy?

Marketing Checklist

Distribution channels

Sales organizations

Market research

Customer service

Product pricing

Market budgets


Financial strengthShort-term fundingLong-term capital

Guide Questions:

1. Where is the firm strong and weak as indicated by financial ratio analysis?

2. Are capital budgeting procedures effective?

3. Does the firm have good relations with its investors and stockholders?

4. Are the firm’s financial managers experienced and well trained?

Financial Checklist

Working capitalCapital budgeting

Dividends

Investor relationsTraining


Financial Ratios

Liquidity ratiosFirm’s ability to meet its short-term obligations

Current ratio

Quick ratio (or acid-test)

Leverage ratios

Extent of debt financing

Debt-to-total-assets

Long-term debt-to-equity

Activity ratiosEffective use of firm’s resources

Accounts receivable turnover

Inventory-turnover

Total assets turnover

Profitability ratios

Effectiveness shown by returns on sales and investment

Gross profit margin

Operating profit margin

Net profit margin

Return on total assets (ROA)

Return on stockholders’ equity (ROE)

Earnings per share

Growth ratios Firm’s ability to maintain economic position

Sales

Net income

Return on equity


SuppliersFacilities and equipment

Inventory control

Guide Questions:1. Are suppliers of raw materials, parts, and subassemblies reliable and reasonable?

2. Are facilities, equipment, machinery, and offices in good condition?

3. Are inventory-control policies and procedures effective?

4. Are quality-control policies and procedures effective?

5. Are facilities, resources, and markets strategically located?

6. Does the firm have technological competencies?

Production Checklist

Quality controlLocation

Technological competencies


Development of new products before competitionImproving product quality

Improving manufacturing processes to reduce costs

Guide Questions:1. Does the firm have R&D facilities? Are they adequate?

2. If outside R&D firms are used, are they cost effective?

3. Are the organization’s R&D personnel well qualified?

4. Are R&D resources allocated effectively?

5. Is communication between R&D and other organizational units effective?

6. Are present products technologically competitive?

R & D Checklist


Computer utilization

MIS organization and controls

Guide Questions:1. Do all managers in the firm use the information system to make decisions?

2. Is there a chief information officer or director of information systems position in the firm?

3. Are data in the information system updated regularly?

4. Do managers from all functional areas of the firm contribute input to the information system?

5. Is the information system user-friendly and updated?

6. Are computer training workshops provided for users?

MIS Checklist

Data sufficiency

Training


IFEIFEKEY INTERNAL FACTORS FUNCTION WT

RAT-ING

WTD SCORE

STRENGTHS

1. Strong ethical culture Culture .05 4 .20

2. Good corporate image Mgmt .10 3 .30

3. Only coxib with migraine indication Marketin

g.15 4 .60

4. Most cost effective among all coxibs Marketin

g.05 3 .15

5. Highly motivated sales forceMarketin

g.15 4 .60

6. Strong R&D background R&D .05 4 .20

WEAKNESSES 0 0

1. Lack of promotional resources.Marketin

g.10 1 .10

2. Weak presence with General PractitionersMarketin

g.15 2 .30

3. Slow growth rate in sales, EBIT and ROE Finance .05 2 .10

4. Operational efficiency issue Operatio

ns .15 2 .30

TOTAL

1

2.85

Assign to each factor a weight

List key internal factors

Assign a 1-4 rating

Multiply each factor by its

rating

Sum the weighted

scores

Documents

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