Chapter 4 WorksheetThe purpose of the internal analysis is to assess the competitive capabilities and resources of the companyunder analysis. For each strategic factor throughout the worksheet, you should conclusively state if the factor is a strength or a weakness. This will strengthen your analysis and help you with your subsequent SWOT analysis.1. How well is the current strategy working (page 87)?In this section you must address the criteria and the 'how well' question simultaneously. For example, if the company is using a broad differentiation strategy as their present strategy, how well is this strategy working for the company? For a broad differentiation strategy, I would expect you to cite examples of adding value for the customer and other stakeholders. Then I expect you to determine how well they are implementing the strategy.Criteria Facts What does this mean?What are the present strategies? (Note: This question applies to the corporate, business and functional levels of the organization. Assess the company’s relative performance using the three tests for a winning strategy. (Refer to Chapter 2, pages 68 and 69.)- Goodness of fit- Competitive advantage- PerformanceWhat is the competitive scope - stages of the industry's production-distribution chain it operates,- geographic market coverage, and- size and composition of the customer base?What are the functional strategies- Production,- marketing.- Finance,- Human resources,- R&D,- Etc.?Start by listing the functional areas; then provide the facts associated with each of the areas. Finally, conduct your analysis and determine how well the functional areas are Thompson, Strickland, and Gamble, 2005, Crafting and Executing Strategy, 14th edition, McGraw-Hill.1working and the associated strengths and weaknesses.Has the company achieved its financial objectives? Go back to your chapter 2 worksheets for the financial objectives. Determine if they achieved their short and long-term objectives and provide the supporting analysis why they did or did not achieve the objective. Then you are in a position to determine the associated strengths or weaknesses.Has the company achieved its strategic objectives? Go back to your chapter 2 worksheets for the strategic objectives. Determine if they achieved their short and long-term objectives and provide the supporting analysis why they did or did not achieve the objective. Then you are in a position to determine the associated strengths or weaknesses.What is the company's position relative to EACH of its competitors?- Market share- Profit margin- Net profits- ROI- EVA (page 9)- MVA (page 10)- Financial strength- Sales growth- Image- Reputation- Industry position- Etc.If the strategy is not working, is it due to:- Weak strategy and/or- Poor implementationThompson, Strickland, and Gamble, 2005, Crafting and Executing Strategy, 14th edition, McGraw-Hill.22. What are the company's resource strengths and weaknesses (page 89)? The purpose of this tool is to assess the competitive values of the company's resources. The four tests of competitive value (pages 123-124) are:- Is the resource hard to copy?- How long does the resource last?- Is the resource really competitively superior?- Can the resource be trumped by a rival's resources/capabilities?For each of the resource types listed below, assess the competitive value of each resource.CriteriaPlease note the following criteria are examples to get you started. You should add the applicable resources for each category.Facts What does this mean?Skills and expertise - Proprietary technology- advertising and promotion- product innovation- ability to improve production processes- technological know-howPhysical assets- plant capacity- plant and equipment age and technological capabilities- plant and retail location- access to distribution channels- wide geographic coverage- global distribution capability- ownership of valuable natural resource depositsHuman assets- Superior intellectual capital- Collective organizational knowledge- Proven managerial capabilitiesOrganizational asset- financial position- patents- better product quality- culture- product line breadth and depth- product quality- proprietary technologyThompson, Strickland, and Gamble, 2005, Crafting and Executing Strategy, 14th edition, McGraw-Hill.3- mineral rights- customer needs data base- exceptionally strong financial positionIntangible asset- image- brand name- reputation for customer serviceCompetitive capabilities- cost advantages- sophisticated use of e-commerce- logistics- strong supplier and dealer networksMarket position- recognized industry leader- attractive customer base- Alliances or cooperative venturesThompson, Strickland, and Gamble, 2005, Crafting and Executing Strategy, 14th edition, McGraw-Hill.43A. Are the company's prices and costs competitive (page 98)? This question applies to all companies independent of the strategy (cost or differentiation) they use to compete in their industry. Using the following criteria, assess each step in the value chain (inbound logistics and supplies, operations, outbound logistics, sales and marketing, service, R&D, human resources, general and administrative) and compare each step with the competitor's prices and costs. After completing this analysis, examine the value chain as a whole. How does the integration of each successive step in the value chain lower costs? Finally, assess the value chain of the company in the context of the industry (page 132).Inbound LogisticsOperations Outbound LogisticsSales and MarketingService Profit MarginR&D HRM A & GStructural cost drivers- Scale economies- Learning curve- Technology requirements- Capital intensity- Product line complexity - Etc.Executional cost drivers- Commitment to continuous improvement- Product quality- Process quality- Capacity utilization- Internal business processes- Working with buyers and suppliers on costs- Etc.Thompson, Strickland, and Gamble, 2005, Crafting and Executing Strategy, 14th edition, McGraw-Hill. 53B. If the company uses either a differentiation or best-value strategy, also assess how each step in the value chain creates or adds value (e.g. incorporates product attributes and user features, raises performance, increases buyer satisfaction) and how the integration of each successive step