The External AssessmentChapter 4. The Internal AssessmentOverview:The external assessment uses an external audit that identifies and evaluates trends and events beyond the firm’s control. The focus is on the five external forces that shape the business environment (a) economic, (b) social, (c) political, (d) technological, and (e) competitive. The internal assessment examines how the company performs in all areas such as marketing, finance/accounting, overall management, IT, and production and operations.Chapter 3 The External AssessmentLearning Objectives:
Describe the nature and purpose of an external assessment in formulating strategies.
Identify and discuss 10 external forces that must be examined in formulating strategies: economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive.
Explain Porter’s Five Forces Model and its relevance in formulating strategies.
Describe key sources of information used for locating vital external information.
Discuss forecasting tools and techniques.
Explain how to develop and use an External Factor Evaluation (E F E) Matrix.
Explain how to develop and use a Competitive Profile Matrix.
Chapter 4 The Internal Assessment Learning Objectives:
Describe the nature and role of an internal assessment in formulating strategies.
Discuss why organizational culture is so important in formulating strategies.
Identify the basic functions (activities) that make up management and their relevance in formulating strategies.
Identify the basic functions of marketing and their relevance in formulating strategies.
Discuss the nature and role of finance and accounting in formulating strategies.
Discuss the nature and role of production/operations in formulating strategies.
Discuss the nature and role of research and development (R&D) in formulating strategies.
Discuss the nature and role of management information systems (MIS) in formulating strategies.
Explain value chain analysis and its relevance in formulating strategies.
Develop and use an Internal Factor Evaluation (IFE) Matrix.
