This document summarizes methods for conducting an internal analysis of an organization. It discusses frameworks for identifying areas to assess, including critical success factors, industry characteristics, and the value chain. Primary and support activities and core processes are examined. Quantitative methods like financial ratios, economic value added, and activity-based costing are outlined. Qualitative analysis of non-financial factors is also noted. The conclusion states that internal analysis along with external analysis helps formulate strategies by determining strengths and weaknesses.

1. SWOT-
INTERNAL
ANALYSIS
PRESENTED BY-
ANJALI RAI
ROLL NO -07
MPMIR 3rd SEMESTER

2. INTERNAL
ANALYSIS
A review of organization’s strength and weakness
Provides means of identifying the strengths to build on and
the weaknesses to overcome in formulating strategies.
A firm’s overall strengths and weaknesses and its ability to
execute may be even more important than its environment in
determining its performance.

3. FRAMEWORK FOR IDENTIFYING
WHAT TO ASSESS
CRITICAL
SUCCESS
FACTORS
INDUSTRY
CHARACTERSTICS
COMPETETIVE
POSITION
GENERAL
ENVIRONMENT
ORGANIZATIONAL
DEVELOPMENT
THE VALUE
CHAIN
PRIMARY
ACTIVITIES
SUPPORT
ACTIVITIES
CORE
PROCCESSES
AND SYSTEMS
PRIMARY
PROCESS
SUPPORT
SYSTEM
CONTROL
SYSTEM

4. THE VALUE CHAIN
FIRM’S INFRASTRUCTURE
HRM
TECHNOLOGY DEVELOPMENT
PROCUREMENT
INBOUND OPERATIONS OUTBOUND MARKETNG
LOGISTICS LOGISTICS & SALES SERVICE
PRIMARY ACTIVITIES
SUPPORT
ACTIVITIES

5. CORE PROCESSES AND SYSTEMS
 PRIMARY PROCESSES
• Product development
• Demand Management
• Order Fulfilment
 SUPPORT SYSTEMS
 Capital resourcing
 Human resourcing
 Information resourcing
 CONTROL SYSTEMS

6. METHODS OF INTERNAL
ANALYSIS
1. THE BALANCED SCORECARD
Four perspectives for complete internal
analysis-
FINANCIAL
CUSTOMER
OPERATIONS
•EVA
•PROFITABILITY
•GROWTH
•DIFFERENTIATION
•COST
•QUICK RESPONSE
•PRODUCT DEVELOPMENT
•DEMAND MANAGEMENT
•ORDER FULFILMENT
•LEADERSHIP
•ORGANIZATIONAL LEARNING
•ABILITY TO CHANGE

7. 2. QUANTITATIVE ANALYSIS
FINANCIAL QUANTITATIVE ANALYSIS
There are four types of financial ratios-
•PROFITABILITY RATIOS
•LIQUIDITY RATIOS
•LEVERAGE RATIOS
•ACTIVITY RATIOS
ECONOMIC VALUE ADDED ANALYSIS
Three options for raising anticipated EVA-
•Acquire capital from less expensive sources
•Earn better return on invested capital
•Use less capital

8. ACTIVITY -BASED COST ACCOUNTING
•Investigating the activities that drive a
firm’s cost and its strategy
•Presents a clearer picture of where costs are
incurred than that available from traditional
accounting methods.
NON-FINANCIAL QUANTITATIVE ANALYSIS
•“The numbers” entail much more than
financial accounting.
• Examples-no. Of patents, employees turnover,
customer complaints, absenteeism rate, no. Of
new products etc.

9. 3. QUALITATIVE ANALYSIS
• 80% of information a firm needs to
make decisions is qualitative, and
rest 20% is quantitative .
•Example-employees morale and
commitment, ability to learn from
past mistakes, creativity and
motivation, extent to which different
parts of the organization share a
common vision and work together as
a team.

10. CONCLUSION
Internal analysis along with external analysis plays an
important role in formulating strategies. The different
frameworks helps in determining the key attributes for
internal analysis. And the different methods of internal
analysis helps us in providing an overview of firm’s
strength and weaknesses.

11. THANK
YOU...