Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 4(1): Internal Analysis (Resource based View (RBV) (3 categories…
Chapter 4(1): Internal Analysis
Definition
Broader evaluation of resources and capabilities
to determine SW for CA
to identify vulnerabilities to be corrected
Areas for internal analysis
Resources
Core competencies
Capabilities
Functional areas
Organizational culture
Value chain activities
Importance of internal analysis
to pinpoint the SW such as the areas
help org to achieve superior efficiency, quality, innovation and responsiveness to customers
lead to superior performance by knowing the strength
improve from inferior by knowing the weakness
Key Internal Forces
Strength -> distinctive competencies -> CA
Process of Internal Audit
determine the strength and weakness by managers and employees
gathering, assimilating and evaluating information about firms operation
provide more opportunity for participants to understand their jobs, division fit into the whole organization
financial ratio analysis exemplify relationship among functional areas
list out key factors
prioritize the list
communicate and distribute final list widely
Resource based View (RBV)
approach to CA contends that internal resources are more vital than external factors to achieve and sustain CA
Resources are capabilities, broad and cover social, individual and organizational phenomena
firm's asset
3 categories of RBV
Physical resources
- plant, equipment, location, technology, raw materials
Hurman resources
- employees, training, experiences, SKA
Organizational resources
- firm structure, planning process, information system, patents, trademark, database
Intangible resources
human resources
innovation
reputation resources (supplier and customers)
Tangible Resources
Financial resources
Organizational
Physical
Technological
Flaws of SWOT
Excessive list of SWOT
No prioritization of factors
Factors are described too broadly
Often opinions, not facts
5 Key Benefits of SWOT
Simple and practical
Clear to understand
Focus on internal and external factors
Identify future goals
Initiate further analysis