1. Ch 4 -1
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Chapter 5
The Internal Assessment
Strategic
Management:
Concepts & Cases
11th
Edition
Fred David
2. Ch 4 -2
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Internal strengths/weaknesses
External opportunities/threats
Clear statement of mission
Nature of an Internal Audit
Basis for Objectives & Strategies
3. Ch 4 -3
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Internal Audit
•Information from:
•Management
•Marketing
•Finance/accounting
•Production/operations
•Research & Development
•Management Information Systems
Parallels process of external audit
4. Ch 4 -4
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Resource Based View (RBV)
Approach to Competitive Advantage
Internal resources are more important
than external factors
5. Ch 4 -5
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Resource Based View (RBV)
Three All Encompassing Categories
1. Physical resources such as all
factories and equipment, location,
machinery, technology
2. Human resources, such as employee,
experience, training
3. Organizational resources, such as
patents, databases, information
systems, copyrights, trademarks
6. Ch 4 -6
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Resource Based View (RBV)
In order for resources to be valuable,
they must emphasize three things,
among others
Rare
Hard to imitate
Not easily substitutable
7. Ch 4 -7
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Integrating Strategy & Culture
Pattern of behavior developed by an
organization as it learns to cope with its
problem of external adaptation and
internal integration…is considered valid
and taught to new members
Organizational Culture
14. Ch 4 -14
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Research & Development
Research & Development Functions
Development of new products before
competitors
Improving product quality
Improving manufacturing processes to
reduce costs
15. Ch 4 -15
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Management Information
Systems
Information Systems
CIO/CTO
Security
User-friendly
E-commerce