January 29, 2015
Professor Hilda L. Teodoro
Ateneo Graduate School of Business
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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
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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
Culture ChecklistCulture Checklist
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1. Is the organization’s set of vision/mission and
strategy clear to all the employees in the
2. Are these appropriate given current situation?
3. Are company objectives and goals measurable and
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?
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Leadership Styles Competence
1. 1. How would you describe the leadership style in the
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?
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Market share growth
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?
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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
4. Are the firm’s financial managers experienced and well
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Firm’s ability to
meet its short-
Quick ratio (or acid-test)
Extent of debt
Effective use of
Accounts receivable turnover
Total assets turnover
shown by returns
on sales and
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
Return on equity
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Facilities and equipment
1. Are suppliers of raw materials, parts, and
subassemblies reliable and reasonable?
2. Are facilities, equipment, machinery, and offices in
3. Are inventory-control policies and procedures
4. Are quality-control policies and procedures effective?
5. Are facilities, resources, and markets strategically
6. Does the firm have technological competencies?
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Development of new products before competition
Improving product quality
Improving manufacturing processes to reduce costs
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
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MIS organization and controls
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?
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KEY INTERNAL FACTORS FUNCTION WT
1. Strong ethical culture Culture .05 4 .20
2. Good corporate image Mgmt .10 3 .30
3. Only coxib with migraine indication Marketing .15 4 .60
4. Most cost effective among all coxibs Marketing .05 3 .15
5. Highly motivated sales force Marketing .15 4 .60
6. Strong R&D background R&D .05 4 .20
1. Lack of promotional resources. Marketing .10 1 .10
2. Weak presence with General Practitioners Marketing .15 2 .30
3. Slow growth rate in sales, EBIT and ROE Finance .05 2 .10
4. Operational efficiency issue Operations .15 2 .30
TOTAL 1 2.85
each factor a
Assign a 1-4
by its rating