OB lecture 8 business strategy internal audit

1. culture Innovative Bureaucratic 2. management Planning Organizing Motivating Staffing Controlling 3. marketing Customers Analysis ProductsServices Pricing Distribution Market Research 4. financial Horizontal Analysis Competitors or Industrial Average

Lecture Internal Audit Unit Business Strategy Culture • Innovative • Bureaucratic 1.0 Culture B A E C F D “System”, very difficult to move 2.0 Management • Planning • Organizing • Motivating • Staffing • Controlling 3.0 Marketing Customers Analysis Products/Services Pricing Distribution Market Research 4.0 Financial • • Horizontal Analysis Competitors or Industrial Average Profitability 4.0 Financial Gross Profit Margin, Net Profit Margin Assets Utilization ROA, ROE Assets Turnover Leverage Debt to Equity Ratio Times Interest Earned Ratio Investment Earning Per Share 5.0 Operation 6.0 Research and Development Alternative Approach BPP Text Book I Limiting Factors Shortage of production capacity Restricted distribution network Poor marketing intelligence Lack of money Adequately trained staf Incompetent managers II Core Competencies e.g IKEA Design Purchasing Store management Value Chain Value Chain Michael Porter Primary Activities Inbound Logistics Operation /Manufacturing Outbound Logistics Marketing and Sales Service Value Chain Michael Porter Supporting Activities Firm Infrastructure Human Resources Management Technology Development Procurement Value Chain Competitive advantage stems from the many activities a firm perform 1996 1.0 Introduction 2.0 Vision and Mission 3.0 Stakeholders 4.0 Environmental Audit 4.1 PESTEL 4.2 Porter’s Five Forces 4.3 Clusters 4.4 External Threat and Opportunities 5.0 Internal Audit 5.1 5.2 5.3 Internal Strengths and Weaknesses Key Internal Factors Strengths 10 Weaknesses 10 End ... Environmental Audit 4.1 PESTEL 4.2 Porter’s Five Forces 4.3 Clusters 4.4 External Threat and Opportunities 5.0 Internal Audit 5.1 5.2 5.3 Internal Strengths and Weaknesses Key Internal Factors