The document discusses assessing a firm's internal environment, including conducting SWOT and value chain analyses to evaluate strengths, weaknesses, and competitive advantages. It describes the primary and support activities in a value chain, such as inbound logistics, operations, outbound logistics, marketing and sales, service, technology development, and general administration. The document also covers assessing a firm's tangible, intangible, and organizational resources based on whether they are valuable, rare, difficult to imitate or substitute. Financial ratio analysis and stakeholder interests are mentioned as additional factors for internal assessment.

1. ASSESSING THE
INTERNAL
ENVIRONMENT OF
THE FIRM

2. The benefits and limitations of SWOT analysis in
conducting the internal analysis of the firm.
The primary and support activities of the firm’s value
chain
Advantage of value chain within the firm and between the
firm and its customers and suppliers.
The different type of tangible and intangible resources, as
well as organizational capabilities.
The four criteria that a firms resources must posses to
maintain a sustainable advantage.
The usefulness of financial ratio analysis as well as its
inherent limitations.
How to make meaningful comparison of performance
across a firm.
The value of recognizing how the interests of a variety of
stakeholders can be interrelated.

3. • To identify strengths to build on and
weaknesses to overcome as they
formulate strategies for competitive
advantages..

4. • A method for assessing strengths and weaknesses
divides the business into a number of linked of activities
that may each produce value for the customer.

5. General administration
Support Activities
Human Resource Management
Margin
Technology Development
Procurement
Marketing &
Outbound
Margin
Operations
logistics
Inbound
logistics
Service
Sales
Primary Activities

6. Some Factors to
consider in
Assessing a Firm’s
Primary
Activities

7. Location of distribution facilities to
minimize shipping times.
Excellent material and inventory control
systems.
Systems to reduce time to send “returns”
to supplier.
Warehouse layout and designs to
increase efficiency of operations for
incoming materials.

8. Efficient plant operations to minimize
costs.
Appropriate level of automation in
manufacturing.
Quality production control systems to
reduce costs and enhance quality.
Efficient plant layout and workflow
design.

9. Effective shipping processes to provide
quick delivery and minimize damages.
Efficient finished goods warehousing
processes.
Shipping of goods in large lot sizes to
minimize transportation costs.
Quality material handling equipment to
increase order picking.

10. Highly motivated and competent sales
force.
Innovative approaches to promotion
and advertising.
Selection of most appropriate
distribution channels.
Proper identification of customer
segment s and needs.
Effective pricing strategies.

11. Effective use of procedures to solicit
customers feedback and to act on
information.
Quick response to customer needs and
emergencies.
Ability to furnish replacement parts and
equipment inventory.
Quality of service personnel and ongoing
training.
Appropriate warranty and guarantee policies.

12. ASSESSING
A FIRM’S
SUPPORT
ACTIVITIES

13. Technology Development
The array of technologies employed
in most firms is very broad, ranging from
technologies used to prepare documents
and transport goods to those embodied
in processes and equipment or the
product itself.

14. General Administration
Consists of number of activities,
including general management, planning ,
finance, accounting, legal, government
affairs, quality management, and
information systems.

15. • Perspective on understanding a firm’s
overall success as a based on its
internal resources has emerged.

16. Types of the Firm Resources:
1. Tangible Resources
2. Intangible Resources
3. Organizational Capabilities

17. Financial
o Firms cash account and cash equivalent
o Firm’s capacity to raise equity
o Firms borrowing capacity
Physical
o Modern plant and facilities
o Favorable manufacturing locations
o State-of -the-art machinery and equipment

18. Human
 Experience and capabilities of employees
 Trust
 Managerial skills
 Firm specific practices and procedures
Innovation and Creativity Reputation
 Technical and scientific skills
 Innovation capacities
 Brand name
 Reputation with customers for quality and reliability
 Reputation with suppliers for fairness, non-zero-sum
relationships

19. Firm competencies or skills the
firm employs to transfer inputs to
outputs.
Capacity to combine tangible and
intangible resources, using
organizational processes to attain
desired end.

20. Four criteria for Assessing Sustainability of
Resources and Capabilities:
Is the resource or capability…. Implications
1.Valuable Neutralize threats and exploit
opportunities
2.Rare Not many firms possess
3.Difficult to imitate Physically unique
Path dependency
Causal ambiguity
Social complexity
4.Difficult to substitute No equivalent strategic
resources or capabilities

21. • Represents a series of cause and
effect relationship in which success
measured from one perspective
contributes to success as measured
from other perspective.

22. 1. Customers Perspective
2. Internal Business Perspective
3. Innovation and Learning
Perspective
4. Financial Perspective