Unit internal assessment
Download as PPTX, PDF0 likes453 views
The document discusses internal assessment (IA) as a method for evaluating a firm's strengths and weaknesses in resources and capabilities, emphasizing its importance over environmental factors for achieving competitive advantage. It highlights Apple Inc.'s success during economic downturns due to innovation and strategic resource management. Various techniques for conducting IA, such as SWOT analysis and value chain analysis, are outlined as essential tools for strategic management.
Unit internal assessment
- 1. Unit 5: The internal Assessment/Analysis By :Mohammadali_Surti
- 2. Introduction • IA also referred to as “internal Appraisal”, “Organizational Audit”, “internal corporate Assessment”, etc. • Research shows that • Overall Strengths and weaknesses of firm’s resources and capabilities are more imp. than Environmental factors • Even when the industry was unattractive and generally unprofitable, firms that came out with superior products enjoyed good profits. Evidence ????? Core Competencies Desirable Improvements Weaknesses Strengths
- 3. Apple Inc. • During a bad recession in 2008, Apple Recorded record Sales. • Innovation capabilities are credited for the firm’s performance in the poor economics times • They have upgraded its innovative iPod with its second generation iPod touch, developed Applications and Aggressive marketing where everybody were cutting down the cost • While they were having positive market situation they still were faced with certain setbacks when CEO Steve had to take medical leave
- 4. The purpose and Aim of IA • Why? Managers perform IA to identify the strengths and weaknesses of a firm’s resources and capabilities. • What? The basic purpose is to build on the strengths and overcome the weaknesses in order to avail of the opportunities and minimize the effects of threats. • The ultimate aim is to gain and sustain competitive advantage in the marketplace
- 5. Importance of Internal Analysis To find Where it stands in terms of its strengths and weaknesses To exploit the opportunities that are in line with its capabilities To correct important Weaknesses To defend against threats To asses capability gaps and take steps to enhance its capabilities
- 6. Conti… • Strategic Management A “Matching Game” between • environmental Opportunities and organizational Strengths • But before tapping opportunities it is important to know its own strengths and weaknesses. So as to decide which one to choose and which to reject… • IA can be done by using various techniques like • RBV • Value chain Analysis • Benchmarking • SWOT Analysis
- 7. Thank You