Internal Analysis

KSFs/Function Area & Resource Deployment Matrix

Anjali Singh

Key Success Factors

• Structure of the Industry • Competitive Strategy, industry position and

geographic location• Environment Factors • Temporal Factors

Internal Analysis

• Functional Areas • Management Areas • The Human Side

Functional Areas

• Marketing • Finance & Accounting • Production • Engineering • R & D • Human Resources • Logistics

Management Areas

• Planning • Organizing • Directing • Staffing • Motivating • Communication • Controlling

Analysis of Management Areas Function Description Important at stage

Planning Forecasting, devising strategies, developing policies and setting goals

Strategy Formulation

Directing Resource allocation and priority determination

Strategy formulation

Organizing Job specification, job description ,unity of command , span of control

Strategy Implementation

Motivating Leadership, communication, job satisfaction, employee and manager’s morals

Strategy Implementation

Communicating Informing, motivating, securing participation, feedback

Strategy Implementation

Staffing Wages , hiring, firing, training, management development

Strategy implementation

Controlling Quality control, financial control, inventory control, expense control

Strategy Evaluation

Human Side

• Individuals • Personalities • Values , ambitions and motivation

Internal Resource Analysis

Functional

Area Analysi

s

Management Area

Analysis

Human Side

Analysis

Inter-relationship

between 2 &

3

Comprehensiv

e Interna

l Analysi

s

Functional Area Profile & Resource Deployment Matrix

• Matrix of function areas with common characteristics

• Indicates how the key function areas stand in relation to each other.

Matrix Functional Area

Resource deployment & Focus

2008-2009

2009-10 2010-2011 Next year

Marketing Development outlay ( % ) Amount Focus of effort

Production Development outlay ( % ) Amount Focus of effort

Finance Development outlay ( % ) Amount Focus of effort

Strategic Advantage Profile

• Summary statement which provides an overview of advantages and disadvantages in key areas likely to affect future operations of the firm

SAP of A Company Internal Area Strength / Weakness

Marketing Capable sales force (+) Shrinking market (-)

R & D No R & D breakthrough (-)Patents from the company which was acquired (+)

Finance Heavy reliance of bank loans (-)Public issue over subscribed ( +)

Analysis of Strength & Weakness

• Historical Criterion • Normative Criterion – what should be • Competition Parity • Critical Success Factor