Meaning and Importance of Internal Assessment in a business so as to tackle external changes mre efficiently.

1. Unit 5:
The internal Assessment/Analysis
By :Mohammadali_Surti

2. Introduction
• IA also referred to as “internal Appraisal”, “Organizational Audit”,
“internal corporate Assessment”, etc.
• Research shows that
• Overall Strengths and weaknesses of firm’s resources and capabilities are
more imp. than Environmental factors
• Even when the industry was unattractive and generally unprofitable, firms
that came out with superior products enjoyed good profits.
Evidence ?????
Core Competencies
Desirable Improvements Weaknesses
Strengths

3. Apple Inc.
• During a bad recession in 2008, Apple Recorded record Sales.
• Innovation capabilities are credited for the firm’s performance in the poor economics times
• They have upgraded its innovative iPod with its second generation iPod touch, developed Applications and Aggressive
marketing where everybody were cutting down the cost
• While they were having positive market situation they still were faced with certain setbacks when CEO Steve had to take
medical leave

4. The purpose and Aim of IA
• Why? Managers perform IA to identify the strengths and weaknesses of a firm’s resources and
capabilities.
• What? The basic purpose is to build on the strengths and overcome the weaknesses in order to
avail of the opportunities and minimize the effects of threats.
• The ultimate aim is to gain and sustain competitive advantage in the marketplace

5. Importance of Internal Analysis
To find Where it stands in terms of its strengths and weaknesses
To exploit the opportunities that are in line with its capabilities
To correct important Weaknesses
To defend against threats
To asses capability gaps and take steps to enhance its capabilities

6. Conti…
• Strategic Management A “Matching Game” between
• environmental Opportunities and organizational Strengths
• But before tapping opportunities it is important to know its own strengths and weaknesses. So as to decide
which one to choose and which to reject…
• IA can be done by using various techniques like
• RBV
• Value chain Analysis
• Benchmarking
• SWOT Analysis

7. Thank You