1. January 29, 2015
INTERNAL ASSESSMENT
Session 4
Professor Hilda L. Teodoro
Ateneo Graduate School of Business

2. 2HILDA L. 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

3. 3HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
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

4. 4HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
Management Checklist
Guide 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?

5. 5HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
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

6. 6HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
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

7. 7HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
Financial strength
Short-term funding
Long-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 capital
Capital budgeting
Dividends
Investor relations
Training

8. 8HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
Financial Ratios
Liquidity ratios
Firm’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 ratios
Effective 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

9. 9HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
Suppliers
Facilities 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 control
Location
Technological competencies

10. 10HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
Development of new products before competition
Improving 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

11. 11HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
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

12. 12HILDA L. ATENEO GRADUATE SCHOOL
OF BUSINESS
IFEIFE
KEY 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 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
WEAKNESSES
0 0
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
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