SWOT-INTERNAL

ANALYSIS

PRESENTED BY-

ANJALI RAI

ROLL NO -07

MPMIR 3rd SEMESTER

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.

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

THE VALUE CHAIN

FIRM’S INFRASTRUCTURE

HRM

TECHNOLOGY DEVELOPMENT

PROCUREMENT

INBOUND OPERATIONS OUTBOUND MARKETNG

LOGISTICS LOGISTICS & SALES SERVICE

PRIMARY ACTIVITIES

SUPPORT

ACTIVITIES

CORE PROCESSES AND SYSTEMS

PRIMARY PROCESSES• Product development

• Demand Management

• Order Fulfilment

SUPPORT SYSTEMS Capital resourcing

Human resourcing

Information resourcing

CONTROL SYSTEMS

METHODS OF INTERNAL

ANALYSIS

1. THE BALANCED SCORECARDFour 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

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

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.

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.

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.

THANK

YOU...