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Strategic Management Slides - Chapter 4 "the Internal Assessment"
Chapter 4 of Fred R. David's strategic management text focuses on the internal assessment process, covering elements such as internal audits, the integration of strategy and culture, and the functions of management including planning, organizing, motivating, staffing, and controlling. It outlines the significance of understanding organizational strengths and weaknesses and the role of distinctive competencies in building a competitive advantage. Additionally, the chapter discusses financial ratio analysis as a means to evaluate internal business performance across different functional areas.
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Strategic Management Slides - Chapter 4 "the Internal Assessment"
- 1. Fred R. David PrenticeHall Ch 4-1 Chapter 4Chapter 4 The Internal AssessmentThe Internal Assessment Strategic Management: Concepts and Cases. 9th edition Fred R. David PowerPoint Slides by Anthony F. Chelte Western New England College
- 2. Fred R. David PrenticeHall Ch 4-2 Chapter OutlineChapter Outline • The Nature of an Internal Audit • Integrating Strategy and Culture • Management
- 3. Fred R. David PrenticeHall Ch 4-3 Chapter OutlineChapter Outline • Marketing • Finance/Accounting • Production/Operations
- 4. Fred R. David PrenticeHall Ch 4-4 Chapter OutlineChapter Outline • Research and Development • Management Information Systems • The Internal Factor Evaluation Matrix (IFE)
- 5. Fred R. David PrenticeHall Ch 4-5 The Internal AssessmentThe Internal Assessment Great spirits have always encountered violent opposition from mediocre minds. -- Albert Einstein
- 6. Fred R. David PrenticeHall Ch 4-6 Nature of an Internal AuditNature of an Internal Audit All organizations –All organizations – • Strengths • Weaknesses
- 7. Fred R. David PrenticeHall Ch 4-7 Key Internal ForcesKey Internal Forces Distinctive Competencies • A firm’s strengths that cannot be easily matched or imitated by competitors • Building competitive advantage involves taking advantage of distinctive competencies • Strategies designed in part to improve on a firm’s weaknesses and turn to strengths
- 8. Fred R. David PrenticeHall Ch 4-8 Internal AuditInternal Audit Involvement in performing an internal strategic-management audit provides vehicle for understanding nature and effect of decisions in other functional business areas of the firm.
- 9. Fred R. David PrenticeHall Ch 4-9 Internal AuditInternal Audit Key to organizational success: – Coordination and understanding among managers from all functional areas
- 10. Fred R. David PrenticeHall Ch 4-10 Internal AuditInternal Audit Functional relationships: – Number and complexity increases relative to organization size
- 11. Fred R. David PrenticeHall Ch 4-11 Internal AuditInternal Audit Financial Ratio Analysis: – Exemplifies complexity of relationships among functional areas of the business
- 12. Fred R. David PrenticeHall Ch 4-12 Integrating Strategy and CultureIntegrating Strategy and Culture Organizational Culture – Pattern of behavior developed by an organization as it learns to cope with its problem of external adaptation and internal integration…is considered valid and taught to new members
- 13. Fred R. David PrenticeHall Ch 4-13 Integrating Strategy and CultureIntegrating Strategy and Culture Organizational Culture -- • Resistant to change • May represent a strength or weakness of the firm
- 14. Fred R. David PrenticeHall Ch 4-14 Integrating Strategy and CultureIntegrating Strategy and Culture Cultural products Values beliefs rites rituals ceremonies myths stories legends sagas language symbols heroes
- 15. Fred R. David PrenticeHall Ch 4-15 Integrating Strategy and CultureIntegrating Strategy and Culture Culture can inhibit strategic management: – Miss changes in external environment because they are blinded by strongly held beliefs – When a culture has been effective in the past, natural tendency to stick with it in future, even during times of major strategic change
- 16. Fred R. David PrenticeHall Ch 4-16 Functions of ManagementFunctions of Management Five basic activities – – Planning – Organizing – Motivating – Staffing – Controlling
- 17. Fred R. David PrenticeHall Ch 4-17 Functions of ManagementFunctions of Management Planning Stage When Most ImportantFunction Strategy Formulation Organizing Strategy Implementation Motivating Strategy Implementation Staffing Controlling Strategy Implementation Strategy Evaluation
- 18. Fred R. David PrenticeHall Ch 4-18 PlanningPlanning Planning Forecasting Establishing objectives Devising strategies Developing policies Setting goals
- 19. Fred R. David PrenticeHall Ch 4-19 Functions of ManagementFunctions of Management Organizing – Achieve coordinated effort – Defining task and authority relationships – Departmentalization – Delegation of authority
- 20. Fred R. David PrenticeHall Ch 4-20 OrganizingOrganizing Organizing Organizational design Job specialization Job descriptions Job specifications Span of control Unity of command Coordination Job design Job analysis Organizing Organizational design Job specialization Job descriptions Job specifications Span of control Unity of command Coordination Job design Job analysis Organizing Organizational design Job specialization Job descriptions Job specifications Span of control Unity of command Coordination Job design Job analysis
- 21. Fred R. David PrenticeHall Ch 4-21 Functions of ManagementFunctions of Management Motivating – Influencing people to accomplish specific objectives – Communication is a major component
- 22. Fred R. David PrenticeHall Ch 4-22 MotivatingMotivating Motivating Leadership Communication Work groups Job enrichment Job satisfaction Needs fulfillment Organizational change Morale
- 23. Fred R. David PrenticeHall Ch 4-23 Functions of ManagementFunctions of Management Staffing – Personnel management – Human resources management
- 24. Fred R. David PrenticeHall Ch 4-24 StaffingStaffing Staffing Wage & salary admin Employee benefits Interviewing Hiring Firing Training Management development Safety Affirmative action EEO Labor relations Career development Discipline procedures Management
- 25. Fred R. David PrenticeHall Ch 4-25 Functions of ManagementFunctions of Management Controlling – Ensure actual operations conform to planned operations
- 26. Fred R. David PrenticeHall Ch 4-26 ControllingControlling Controlling Quality control Financial control Sales control Inventory control Expense control Analysis of variances Rewards Sanctions Management
- 27. Fred R. David PrenticeHall Ch 4-27 Leverage ratios • Extent of debt financing Ratios Debt-to-total-assets Debt-to-equity Long-term debt-to-equity Times-interest earned Basic Financial RatiosBasic Financial Ratios
- 28. Fred R. David PrenticeHall Ch 4-28 Activity ratios • Effective use of firm’s resources Ratios Inventory-turnover Fixed assets turnover Total assets turnover Accounts receivable turnover Average collection period Basic Financial RatiosBasic Financial Ratios
- 29. Fred R. David PrenticeHall Ch 4-29 Profitability ratios • Effectiveness shown by returns on sales and investment Ratios Gross profit margin Operating profit margin Net profit margin Return on total assets (ROA) Basic Financial RatiosBasic Financial Ratios
- 30. Fred R. David PrenticeHall Ch 4-30 Profitability ratios (continued) • Effectiveness shown by returns on sales and investment Ratios Return on stockholders’ equity (ROE) Earnings per share Price-earnings ratio Basic Financial RatiosBasic Financial Ratios
- 31. Fred R. David PrenticeHall Ch 4-31 Growth ratios • Firm’s ability to maintain economic position Ratios Sales Net income Earnings per share Dividends per share Basic Financial RatiosBasic Financial Ratios
- 32. Fred R. David PrenticeHall Ch 4-32 • Are dividend payout policies reasonable? • Does the firm have good relations with its investors and stockholders? • Are the firm’s financial managers experienced and well trained? Finance/Accounting AuditFinance/Accounting Audit