The internal assessment

CHAPTER 4

THE INTERNAL ASSESSMENT

CHAPTER OUTLINE

| |The Nature of an Internal Audit |
| |The Resource-Based View |
| |Integrating Strategy and Culture|
| |Management |
| |Marketing |
| |Finance/Accounting|
| |Production/Operations |
| |Research and Development |
| |Management Information Systems|
| |The Internal Factor Evaluation (IFE) Matrix |

CHAPTER OBJECTIVES

After studying this chapter, you should be able to do the following:

|1. |Describe how to perform an internal strategic-management audit.|
|2. |Discuss the Resource-Based View (RBV) in strategic management. |
|3. |Discuss key interrelationships among the functional areas of business. |
|4. |Compare and contrast culture in America versus othercountries. |
|5. |Identify the basic functions or activities that make up management, marketing, finance/ accounting, production/operations, research |
| |and development, and management information systems. |
|6. |Explain how todetermine and prioritize a firm’s internal strengths and weaknesses. |
|7. |Explain the importance of financial ratio analysis. |
|8. |Discuss the nature and role of management information systems in strategic management. ||9. |Develop an IFE Matrix. |
|10. |Explain benchmarking as a strategic management tool. |

CHAPTER OVERVIEW

Chapter 4 focuses on identifying and evaluating a firm’s strengths and weaknesses in thefunctional areas of business, including management, marketing, finance/accounting, production/operations, research and development, and management information systems. Relationships among these areas of business and the strategic implications of important functional area concepts are examined. The process of performing an internal audit is described. Strategies are formulated that take advantageof an organization’s internal strengths and improve upon weaknesses. The Resource-Based View (RBV) of strategic management is introduced as well as the Value Chain Analysis (VCA) concept.

EXTENDED CHAPTER OUTLINE

I. THE NATURE OF AN INTERNAL AUDIT

A. Strengths and Weaknesses

1. All organizations have strengths and weaknesses in the functional areas of business. No...