Chapter 4 - Internal Assessment

7/25/2019 Chapter 4 - Internal Assessment

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Chapter IV

THE INTERNAL

ASSESSMENT


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THE NATURE OF ANINTERNAL AUDIT


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A COMPREHENSIVE STRATEGIC -MANAGEMENT MODEL


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Distinctive Competencies

A frms strenths that !ann"t #e eas$%&mat!he' "r $m$tate' #& !"mpet$t"rs(

)*$%'$n !"mpet$t$+e a'+antaes$n+"%+es ta,$n a'+antae " '$st$n!t$+e!"mpeten!$es(

.E/ INTERNAL FORCES


5/90

The Internal AuditRe0*$res ather$n an' ass$m$%at$n$n"rmat$"n a#"*t the frms manaement1

mar,et$n1 fnan!e2a!!"*nt$n1pr"'*!t$"n2"perat$"ns1 resear!h an''e+e%"pment 3R4D51 an' manaement$n"rmat$"n s&stems "perat$"ns(

Pr"+$'es m"re "pp"rt*n$t& "r part$!$pants t"*n'erstan' h"6 the$r 7"#s1 'epartments1 an''$+$s$"ns ft $nt" the 6h"%e "ran$8at$"n(

THE PROCESS OF PERFORMING ANINTERNAL AUDIT


6/90

9The 'e+e%"pment " !"n!%*s$"ns "n the :; t"


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9D*r$n the frst ft& &ears1 s*!!ess*%frms "!*se' the$r ener$es "n"pt$m$8$n the per"rman!e " "ne " the

pr$n!$pa% *n!t$"nsBpr"'*!t$"n2"perat$"ns1 R4D1 "rmar,et$n(

Th$s trans$t$"n r"m a s$n%e *n!t$"n"!*s t" a m*%t$*n!t$"na% "!*s $sessent$a% "r s*!!ess*% strate$!

manaement?

ANSOFF

T"'a&1 '*e t" r"6$n !"mp%e=$t&an' '&nam$sm " the en+$r"nment1s*!!ess $n!reas$n%& 'epen's "n a

7*'$!$"*s !"m#$nat$"n " se+era%*n!t$"na% $n*en!es(


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9@e ma& !"n!ept*a%%& separate p%ann$n"r the p*rp"se " the"ret$!a% '$s!*ss$"nan' ana%&s$s1 #*t $n pra!t$!e1 ne$ther $s $t

a '$st$n!t ent$t& n"r $s $t !apa#%e " #e$nseparate'(an'

GEORGE

The p%ann$n *n!t$"n $s m$=e' 6$tha%% "ther #*s$ness *n!t$"ns %$,e $n, "n!e m$=e'6$th 6ater1 $t !ann"t #e set apart( It $ssprea' thr"*h"*t an' $s a part " the6h"%e mana$n an "ran$8at$"n?


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THE RESOURCE-)ASED VIE@


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The Resource Based View(RBV) Approach

C"nten's that $nterna% res"*r!es arem"re $mp"rtant "r a frm than e=terna%a!t"rs $n a!h$e+$n an' s*sta$n$n!"mpet$t$+e a'+antae

THE RESOURCE-)ASED VIE@ 3R)V5


11/90

9In a 6"r%' 6here !*st"mer preeren!es are+"%at$%e1 the $'ent$t& " !*st"mers $s !han$nan' the te!hn"%"$es "r ser+$n !*st"merre0*$rements are !"nt$n*a%%& e+"%+$n1 ane=terna%%& "!*se' "r$entat$"n '"es n"t pr"+$'e ase!*re "*n'at$"n "r "rm*%at$n %"n termstrate&( @hen the e=terna% en+$r"nment $s $nthe state " *=1 the frms "6n res"*r!es an'

!apa#$%$t$es ma& #e a m*!h m"re sta#%e #as$s "n6h$!h t" 'efne $ts $'ent$t&( Hen!e1 a 'efn$t$"n

" a #*s$ness $n terms " 6hat $t $s !apa#%e "'"$n ma& "er a m"re '*ra#%e #as$s "rstrate& than a 'efn$t$"n #ase' *p"n the nee'

6h$!h the #*s$ness see,s t" sat$s&?

RO)ERT GRANT

+"%at$%e

!han$n

e+"%+$n

Hen!e1 a 'efn$t$"n " a#*s$ness $n terms " 6hat $t $s !apa#%e " '"$nma& "er a m"re '*ra#%e #as$s "r strate& thana 'efn$t$"n #ase' *p"n the nee' 6h$!h the#*s$ness see,s t" sat$s&?


12/90

Pr"p"nents " theRBV !"nten' that"ran$8at$"na% per"rman!e 6$%%pr$mar$%& #e 'eterm$ne' #& $nterna%

res"*r!es that !an #e r"*pe' $nt"these three a%%-en!"mpass$n!ate"r$esBPhysical Resources

Human Resources

r!ani"ational Resources

THE RESOURCE-)ASED VIE@ 3R)V5


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PhysicalResources

HumanResources

r!ani"ationalResources

P%ant an'

E0*$pment L"!at$"n Te!hn"%"& Ra6 Mater$a%s Ma!h$nes

Emp%"&ees

E=per$en!e .n"6%e'e Tra$n$n Inte%%$en!e S,$%%s A#$%$t$es

F$rm str*!t*re

P%ann$n an'Pr"!ess In"rmat$"n

S&stems Patent Tra'emar,s C"p&r$ht Data#ase


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F"r a res"*r!e t" #e +a%*a#%e1 $t m*st#e e$therB:( Rare


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INTEGRATING

STRATEG/ ANDCULTURE


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r!ani"ational culture s$n$f!ant%&ae!ts #*s$ness 'e!$s$"ns an' th*sm*st #e e+a%*ate' '*r$n an $nterna%

strate$!-manaement a*'$t(I strate$es !an !ap$ta%$8e "n !*%t*ra%

strenths1 s*!h as a stron! wor# ethic"r hi!hly ethical $elie%s1 thenmanaement "ten !an s6$t%& an'eas$%& implement!hanes(

INTEGRATING STRATEG/ ANDCULTURE


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EAMPLES OF CULTURAL PRODUCTS


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L"rs!h "*n' that e=e!*t$+es $n s*!!ess*%!"mpan$es are em"t$"na%%& !"mm$tte' t"the frms !*%t*re1 #*t he !"n!%*'e' that

!*%t*re !an $nh$#$t strate$! manaement$n t6" #as$! 6a&sB F$rst1 manaers re0*ent%& m$ss the s$n$f!an!e

" !han$n e=terna% !"n'$t$"ns #e!a*se the& are#%$n'e' #& str"n%& he%' #e%$es(

Se!"n'1 6hen a part$!*%ar !*%t*re has #eenee!t$+e $n the past1 the nat*ra% resp"nse $s t"st$!, 6$th $t $n the *t*re1 e+en '*r$n t$mes "ma7"r strate$! !hane(

INTEGRATING STRATEG/ ANDCULTURE


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POSSI)LE ASPECTS OF ANORGANIATIONS CULTURE


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MANAGEMENT


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THE FUNCTIONS OF MANAGEMENT


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The *n!t$"ns " manaement !"ns$st " f+e#as$! a!t$+$t$esB

P%ann$n

Oran$8$n

M"t$+at$n Sta>n

C"ntr"%%$n

These a!t$+$t$es are $mp"rtant t" assess $nstrate$! p%ann$n #e!a*se an "ran$8at$"n

sh"*%' !"nt$n*a%%& capitali"e"n $tsmanaement strenths an' improve"n $tsmanaement 6ea,nesses(

THE FUNCTIONS OF MANAGEMENT


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Plannin! the pr"!ess #& 6h$!h "ne 'eterm$nes 6hether t" attempt a

tas,1 6"r,s "*t the m"st ee!t$+e 6a& " rea!h$n 'es$re'"#7e!t$+es an' prepares t" "+er!"me *ne=pe!te' '$>!*%t$es6$th a'e0*ate res"*r!es(

The $ene&ts o% plannin!' He%ps $n a!h$e+$n ma=$m*m ee!t r"m a $+en e"rt

Ena#%es t" ta,e $nt" a!!"*nt re%e+ant a!t"rs an' "!*s "nthe !r$t$!a% "nes

Gather nee'e' res"*r!es t" !arr& "*t tas,s ee!t$+e%& an'e>!$ent%&

I'ent$& an' ta,e a'+antae " e=terna% "pp"rt*n$t$es an'm$n$m$8e the $mpa!t " e=terna% threats

De+e%"p s&ner&

A%%"6 t" a'apt t" !han$n mar,ets

PLANNING


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r!ani"in! Assem#%$n an' !""r'$nat$n the h*man1 fnan!$a%1

ph&s$!a%1 $n"rmat$"na%1 an' "ther res"*r!es nee'e' t"a!h$e+e "a%s(

Determ$n$n 6h" '"es 6hat an' 6h" rep"rts t" 6h"m(

Three seuential activities* +or# ,peciali"ation )rea,$n '"6n tas,s $nt" 7"#s an' the 'e+e%"pment " 7"#

'es!r$pt$"ns an' 7"# spe!$f!at$"ns(

-* Departmentali"ation C"m#$n$n 7"#s t" "rm 'epartments t" ma,e an

"ran$8at$"na% str*!t*re1 span " !"ntr"% an' !ha$n "!"mman'(

.* Dele!atin! Authority

G$+$n a*th"r$t& an' resp"ns$#$%$t& t" emp%"&ees(

ORGANIING


25/90

/otivatin!The pr"!ess " $n*en!$n pe"p%e t"a!!"mp%$sh spe!$f! "#7e!t$+es

0our /a1or Components2eadership De+e%"p$n a +$s$"n " the frms *t*re an' $nsp$r$n

pe"p%e t" 6"r, har' t" a!h$e+e that +$s$"n(

3roup Dynamics In"rma% r"*ps that ae!t the emp%"&ees m"ra%ean' sat$sa!t$"n

Communication

r!ani"ational Chan!e

MOTIVATING


26/90

,ta4n!C"ntr"%s a%% re!r*$tment an' pers"nne% nee's" the frm

A%s" !a%%e' pers"nne% manaement " h*manres"*r!e manaement(

In!%*'es a!t$+$t$es 6$th emp%"&ees %$,eB Re!r*$t$n

Inter+$e6$nTest$n

Se%e!t$n

Or$ent$n

STAFFING

Pr"m"t$n

Transerr$n Dem"t$n

D$sm$ss$n

Mana$n*n$"n

re%at$"ns

Tra$n$n

De+e%"p$n Car$n "r

E+a%*at$n

Re6ar'$n

D$s!$p%$n$n


27/90

Controllin! In!%*'es a!t$+$t$es *n'erta,en t" ens*re thata!t*a% "perat$"ns !"n"rm t" p%anne'

"perat$"ns(0our Basic ,tepsEsta#%$sh$n per"rman!e stan'ar's

Meas*r$n $n'$+$'*a% an' "ran$8at$"na%

per"rman!eC"mpar$n a!t*a% per"rman!e t" p%anne'per"rman!e stan'ar's

Ta,$n !"rre!t$+e a!t$"ns

CONTROLLING


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:( D"es the frm *se strate$!-manaement!"n!epts


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MAR.ETING


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/ar#etin! the pr"!ess " 'efn$n1 ant$!$pat$n1 !reat$n1 an'

*%f%%$n !*st"mers nee's an' 6ants "r pr"'*!ts an'ser+$!es(

0unctions o% /ar#etin! C*st"mer Ana%&s$s

Se%%$n Pr"'*!ts2Ser+$!es

Pr"'*!t an' Ser+$!e P%ann$n

Pr$!$n

D$str$#*t$"n

Mar,et$n Resear!h

C"st2)eneft Ana%&s$s

MAR.ETING AND ITS FUNCTIONS


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C*st"mer ana%&s$s the e=am$nat$"n an' e+a%*at$"n " !"ns*mernee's1 'es$res1 an' 6ants

essent$a% $n 'e+e%"p$n an ee!t$+e m$ss$"nstatement

$n+"%+es the "%%"6$n a!t$+$t$es

a'm$n$ster$n !*st"mer s*r+e&s

ana%&8$n !"ns*mer $n"rmat$"n e+a%*at$n mar,et p"s$t$"n$n strate$es

'e+e%"p$n !*st"mer pr"f%es

'eterm$n$n "pt$ma% mar,et sementat$"n

strate$es

CUSTOMER ANAL/SIS


32/90

,ellin!enera%%& 'eterm$nes the s*!!ess " strate&$mp%ementat$"n(

In+"%+es man& mar,et$n a!t$+$t$ess*!h asBA'+ert$s$n

Sa%es Pr"m"t$"n

P*#%$!$t&

Pers"na% Se%%$n

Sa%es F"r!e Manaement

C*st"mer Re%at$"ns

Dea%er Re%at$"ns

SELLING PRODUCTS2SERVICES


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SELLING PRODUCTS2SERVICES


34/90

Product and service plannin!V$ta% 6hen a !"mpan& $s p*rs*$n pr"'*!t'e+e%"pment "r '$+ers$f!at$"n

$n!%*'es a!t$+$t$es s*!h asBTest mar,et$n Pr"'*!t an' #ran' p"s$t$"n$n

De+$s$n 6arrant$es

Pa!,a$n

Determ$n$n pr"'*!t "pt$"ns Feat*res

St&%e an' 0*a%$t&

De%et$n "%' pr"'*!ts

Pr"+$'$n "r !*st"mer ser+$!e

PRODUCT AND SERVICE PLANNING


35/90

Pricin!S"met$mes an "ran$8at$"n 6$%% p*rs*e a "r6ar'

$nterat$"n strate& pr$mar$%& t" a$n #etter!"ntr"% "+er pr$!es !hare' t" !"ns*mers

,ta#eholders that a5ect pricin!decisionsB C"ns*mer

G"+ernments

S*pp%$ers D$str$#*t"rs

C"mpet$t"rs

PRICING


36/90

Distri$ution espe!$a%%& $mp"rtant 6hen a frm $s str$+$n t"

$mp%ement a mar,et 'e+e%"pment "r "r6ar'Interat$"n strate&

Includes the %ollowin! activities' @areh"*s$n

D$str$#*t$"n !hanne%s

D$str$#*t$"n !"+erae

Reta$% s$te %"!at$"ns Sa%es terr$t"r$es

In+ent"r& %e+e%s an' %"!at$"n

Transp"rtat$"n !arr$ers

@h"%esa%$n

Reta$%$n

DISTRI)UTION


37/90

/ar#etin! researchthe s&stemat$! ather$n1 re!"r'$n1an' ana%&8$n " 'ata a#"*t pr"#%ems

re%at$n t" the mar,et$n " ""'s an'ser+$!es

!an *n!"+er !r$t$!a% strenths an'

6ea,nesses

MAR.ETING RESEARCH


38/90

Three steps are re0*$re' t" per"rm a!"st2#eneft ana%&s$sB

:( !"mp*te the t"ta% !"sts ass"!$ate'

6$th a 'e!$s$"n1


39/90

Are mar,ets semente' ee!t$+e%&

Is the "ran$8at$"n p"s$t$"ne' 6e%% am"n!"mpet$t"rs

Has the f rms mar,et share #een $n!reas$nAre present !hanne%s " '$str$#*t$"n re%$a#%e

an' !"st ee!t$+e

D"es the frm ha+e an ee!t$+e sa%es

"ran$8at$"nD"es the frm !"n'*!t mar,et resear!h

Are pr"'*!t 0*a%$t& an' !*st"mer ser+$!e""'

Are the frms pr"'*!ts an' ser+$!es pr$!e'

MAR.ETING AUDIT CHEC.LIST OFUESTIONS


40/90

D"es the frm ha+e an ee!t$+e pr"m"t$"n1a'+ert$s$n1 an' p*#%$!$t& strate&

Are mar,et$n1 p%ann$n1 an' #*'et$n

ee!t$+eD" the frms mar,et$n manaers ha+e

a'e0*ate e=per$en!e an' tra$n$n

Is the f rms Internet presen!e e=!e%%ent as!"mpare' t" r$+a%s

MAR.ETING AUDIT CHEC.LIST OFUESTIONS


41/90

FINANCE2ACCOUNTING

FUNCTIONS


42/90

Three decisions !"mpr$s$nfnan!e2a!!"*nt$n *n!t$"nsBThe $n+estment 'e!$s$"nThe fnan!$n 'e!$s$"n

The '$+$'en' 'e!$s$"n

FINANCE2ACCOUNTING FUNCTIONS


43/90

Investment decisionthe a%%"!at$"n an' rea%%"!at$"n "!ap$ta% an' res"*r!es t" pr"7e!ts1

pr"'*!ts1 assets1 an' '$+$s$"ns " an"ran$8at$"n

a%s" ,n"6n as !ap$ta% #*'et$n

re0*$re' t" s*!!ess*%%& $mp%ementstrate$es

INVESTMENT DECISION


44/90

0inancin! decision 'eterm$nes the #est !ap$ta% str*!t*re "r the frm an'

$n!%*'es e=am$n$n +ar$"*s meth"'s #& 6h$!h the frm!an ra$se !ap$ta%

M*st !"ns$'er #"th sh"rt-term an' %"n-term nee's"r 6"r,$n !ap$ta%(

6ey &nancial ratios that indicatewhether a &rm7s &nancin! decision are

e5ective' De#t-t"-e0*$t& rat$"

De#t-t"-t"ta%-assets rat$"

FINANCING DECISION


45/90

Dividend decisions !"n!ern $ss*es s*!h as the per!entae " earn$ns

pa$' t" st"!,h"%'ers1 the sta#$%$t& " '$+$'en's pa$'"+er t$me1 an' the rep*r!hase "r $ss*an!e " st"!,

'eterm$ne the am"*nt " *n's that are reta$ne' $n afrm !"mpare' t" the am"*nt pa$' "*t t" st"!,h"%'ers

0inancial ratios that help evaluatedividend decisions'

Earn$ns-per-share rat$" D$+$'en's-per-share rat$"

Pr$!e-earn$ns rat$"

DIVIDEND DECISIONS


46/90

Reas"ns "r pa&$n '$+$'en's e+en6hen *n's !"*%' #e #etterre$n+este'B

:(Pa&$n !ash $s !*st"mar&


47/90

0inancial Ratio AnalysisThe m"st 6$'e%& *se' meth"' "r 'eterm$n$nan "ran$8at$"ns strenths an' 6ea,nesses$n the $n+estment1 fnan!$n1 an' '$+$'en'areas

Can s$na% strenths "r 6ea,nesses $nmanaement1 mar,et$n1 pr"'*!t$"n1 resear!han' 'e+e%"pment1 an' manaement

$n"rmat$"n s&stems a!t$+$t$es(

Trend AnalysisA *se*% te!hn$0*e that $n!"rp"rates #"tht$me an' $n'*str& a+erae '$mens$"ns "

fnan!$a% rat$"s(

FINANCIAL RATIO ANAL/SIS


48/90

FINANCIAL RATIO TREND ANAL/SIS


49/90

2iuidity Ratios Meas*re a f rms a#$%$t& t" meet mat*r$n sh"rt-term

"#%$at$"ns

2evera!e Ratios Meas*re the e=tent t" 6h$!h a frm has #een fnan!e' #&

'e#t

Activity Ratios Meas*re h"6 ee!t$+e%& a frm $s *s$n $ts res"*r!es

Pro&ta$ility Ratios Meas*re manaements "+era%% ee!t$+eness as sh"6n #&

the ret*rns enerate' "n sa%es an' $n+estment

3rowth Ratios Meas*re the frms a#$%$t& t" ma$nta$n $ts e!"n"m$! p"s$t$"n

$n the r"6th " the e!"n"m& an' $n'*str&

)ASIC T/PES OF FINANCIAL RATIOS


50/90

A SUMMAR/ OF .E/FINANCIAL RATIOS


51/90



52/90



53/90



54/90

Manaement1 mar,et$n manaement1pr"'*!t$"n2"perat$"ns1 resear!h an''e+e%"pment1 an' manaement $n"rmat$"ns&stems 'e!$s$"ns(

A!t$"ns #& !"mpet$t"rs1 s*pp%$es1 '$str$#*t"rs1!re'$t"rs1 !*st"mers an' shareh"%'ers(

E!"n"m$!1 s"!$a%1 !*%t*ra%1 'em"raph$!1en+$r"nmenta%1 p"%$t$!a%1 "+ernmenta%1 %ea%1

an' te!hn"%"$!a% tren's(

OTHER FACTORS THAT AFFECT AFIRMS FINANCIAL CONDITION


55/90

)EFORE AND AFTER )REA.EVENCHART @HEN PRICES ARE LO@ERED


56/90

)EFORE AND AFTER )REA.EVEN CHART@HEN FIED COSTS ARE INCREASED

)EFORE AND AFTER )REA.EVEN CHART


57/90

)EFORE AND AFTER )REA.EVEN CHART@HEN PRICES ARE LO@ERED AND FIED

COSTS ARE INCREASED


58/90

H"6 has ea!h rat$" !hane' "+ert$me

H"6 '"es ea!h rat$" !"mpare t"$n'*str& n"rms

H"6 '"es ea!h rat$" !"mpare 6$th,e& !"mpet$t"rs

FINANCIAL RATIO ANAL/SIS


59/90

Based on Accountin! DataF$rms '$er $n treatment " s"me $tems 3e(('epre!$at$"n1 $n+ent"r& +a%*at$"n5(

,easonal 0actorsCan $n*en!e !"mparat$+e rat$"s(

Con%ormity or departure withindustry avera!esD"es n"t esta#%$sh 6$th !erta$nt& that a frm$s per"rm$n n"rma%%&1 "r that $t $s 6e%%manae'(

LIMITATIONS OF FINANCIAL RATIOS


60/90

:( @here $s the frm fnan!$a%%& str"n an'6ea, as $n'$!ate' #& fnan!$a% rat$"ana%&ses


61/90

J( Are '$+$'en' pa&"*t p"%$!$esreas"na#%e

K( D"es the frm ha+e ""' re%at$"ns6$th $ts $n+est"rs an' st"!,h"%'ers

( Are the frms fnan!$a% manaerse=per$en!e' an' 6e%% tra$ne'

( Is the frms 'e#t s$t*at$"ne=!e%%ent

FINANCE2ACCOUNTING AUDITCHEC.LIST


62/90

PRODUCTION AND

OPERATIONS


63/90

Production8operations %unction !"ns$sts " a%% th"se a!t$+$t$es that trans"rms $np*ts

$nt" ""'s an' ser+$!es

'ea%s 6$th $np*ts1 trans"rmat$"ns1 an' "*tp*ts that

+ar& a!r"ss $n'*str$es an' mar,ets(0ive 0unctions8Decision Areas

Pr"!ess

Capa!$t&

In+ent"r& @"r,"r!e

*a%$t&

PRODUCTION2OPERATIONS

THE )ASIC FUNCTIONS 3DECISIONS5


64/90

THE )ASIC FUNCTIONS 3DECISIONS5@ITHIN PRODUCTION2OPERATIONS


65/90

IMPLICATIONS OF VARIOUS STRATEGIESON PRODUCTION2OPERATIONS

PRODUCTION2OPERATIONS


66/90

:( Are s*pp%$es " ra6 mater$a%s1 parts1 an's*#assem#%$es re%$a#%e an' reas"na#%e


67/90

RESEARCH AND

DEVELOPMENT

RESEARCH AND DEVELOPMENT


68/90

The fth ma7"r area " $nterna%"perat$"ns that sh"*%' #ee=am$ne' "r spe!$f! strenth an'

6ea,nesses $s resear!h an''e+e%"pment 3R4D5

RESEARCH AND DEVELOPMENTFUNCTION



69/90

r!ani"ation invest in R9D$ecause'

The& #e%$e+e $t 6$%% %ea' t" a s*per$"r

pr"'*!t an' ser+$!e It 6$%% $+e them !"mpet$t$+e a'+antae

Impr"+$n man*a!t*r$n pr"!ess t"re'*!e !"st

Impr"+$n pr"'*!t 0*a%$t&




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The "+era%% m$ss$"n " Resear!h an'De+e%"pments*pp"rt$n e=$st$n #*s$nesses

%a*n!h$n ne6 #*s$nesses'e+e%"p$n ne6 pr"'*!ts

$mpr"+$n pr"'*!t 0*a%$t&

$mpr"+$n man*a!t*r$n e>!$en!&

#r"a'en$n te!hn"%"$!a% !apa#$%$t$es



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Internal Research and DevelopmentAn "ran$8at$"n "perates $ts "6n R4D'epartment

Contract Research andDevelopmentA frm h$res $n'epen'ent resear!hers "r

$n'epen'ent aen!$es t" 'e+e%"p spe!$f!pr"'*!ts

FORMS OF R4D

R4D SPENDING AT TEN SAMPLE


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R4D SPENDING AT TEN SAMPLECOMPANIES



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:( D"es the frm ha+e R4D a!$%$t$es Are the&a'e0*ate


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MANAGEMENT

INFORMATION S/STEMS

MANAGEMENT INFORMATION


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Purpose t" $mpr"+e the per"rman!e " an enterpr$se#& $mpr"+$n the 0*a%$t& " manaer$a%

'e!$s$"ns

An ee!t$+e $n"rmat$"n s&stem th*s!"%%e!ts1 !"'es1 st"res1 s&nthes$8es1 an'

presents $n"rmat$"n $n s*!h a mannerthat $t ans6ers $mp"rtant "perat$n an'strate$! 0*est$"ns(

MANAGEMENT INFORMATIONS/STEMS



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Data are $np*t t" the s&stem an'trans"rme' $nt" an "*tp*t(

Data #e!"me $n"rmat$"n "n%& 6henthe& are e+a%*ate'1 f%tere'1 !"n'ense'1ana%&8e'1 an' "ran$8e' "r a spe!$f!p*rp"se1 pr"#%em1 $n'$+$'*a%1 "r t$me(

MANAGEMENT INFORMATIONS/STEMS



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:( D" a%% manaers $n the frm *se the$n"rmat$"n s&stem t" ma,e 'e!$s$"ns


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J( Are strate$sts " the frm am$%$ar 6$th the$n"rmat$"n s&stems " r$+a% frms

K( Is the $n"rmat$"n s&stem *ser-r$en'%&

( D" a%% *sers " the $n"rmat$"n s&stem*n'erstan' the !"mpet$t$+e a'+antaes that$n"rmat$"n !an pr"+$'e frms

( Are !"mp*ter tra$n$n 6"r,sh"ps pr"+$'e'"r *sers " the $n"rmat$"n s&stem

:;(Is the frms $n"rmat$"n s&stem !"nt$n*a%%e$n $mpr"+e' $n !"ntent- an' *ser-r$en'%$ness

MANAGEMENT INFORMATIONS/STEMS AUDIT


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VALUE CHAIN ANAL/SIS


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Value chain analysis (VCA5 reers t" the pr"!ess 6here#& a frm 'eterm$nes

the !"sts ass"!$ate' 6$th "ran$8at$"na% a!t$+$t$esr"m p*r!has$n ra6 mater$a%s t" man*a!t*r$n

pr"'*!t3s5 t" mar,et$n th"se pr"'*!ts a$ms t" $'ent$& 6here %"6-!"st a'+antaes "r

'$sa'+antaes e=$st an&6here a%"n the +a%*e!ha$n r"m ra6 mater$a% t" !*st"mer ser+$!ea!t$+$t$es

!an ena#%e a frm t" *rther $'ent$& $ts "6nstrenths an' 6ea,nesses 1 espe!$a%%& as!"mpare' t" !"mpet$t"rs +a%*e !ha$n ana%&sesan' the$r "6n 'ata e=am$ne' "+er t$me

VALUE CHAIN ANAL/SIS 3VCA5


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Core CompetenceA +a%*e !ha$n a!t$+$t& that a frm per"rmsespe!$a%%& 6e%%

Distinctive Competence@hen a !"re !"mpeten!e e+"%+es $nt" a ma7"r!"mpet$t$+e a'+antae

VALUE CHAIN ANAL/SIS

TRANSFORMING VALUE CHAIN


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ACTIVITIES INTO SUSTAINEDCOMPETITIVE ADVANTAGE


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Benchmar#in!an ana%&t$!a% t""% *se' t" 'eterm$ne 6hethera frms +a%*e !ha$n a!t$+$t$es are !"mpet$t$+e!"mpare' t" r$+a%s an' th*s !"n'*!$+e t"6$nn$n $n the mar,etp%a!e

enta$%s meas*r$n !"sts " +a%*e !ha$na!t$+$t$es a!r"ss an $n'*str& t" 'eterm$ne9#est pra!t$!es? am"n !"mpet$n frms "r

the p*rp"se " '*p%$!at$n "r $mpr"+$n *p"nth"se #est pra!t$!es(

)ENCHMAR.ING


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THE INTERNAL FACTOREVALUATION 3IFE5

MATRI

THE INTERNAL FACTOR EVALUATION


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Internal 0actor :valuation (I0:)/atri;A strate& "rm*%at$"n t""% that

s*mmar$8es an' e+a%*ates the ma7"rstrenths an' 6ea,nesses $n the*n!t$"na% areas " a #*s$ness an'pr"+$'es a #as$s "r $'ent$&$n an'e+a%*at$n re%at$"nsh$ps am"n th"seareas(

THE INTERNAL FACTOR EVALUATION3IFE5 MATRI

FIVE STEPS IN DEVELOPING AN IFE


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,tep ' 2ist #ey internal %actors asidenti&ed in the Internal


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,tep -' Assi!n a wei!ht that ran!es%rom =*= (not important) to *= (all

Documents

Chapter 4 - Internal Assessment