INTERNAL FACTOR

EVALUATION

The Internal Assessment

Great spirits have always encountered violent

opposition from mediocre minds.

-- Albert Einstein

Fred R. David
Prentice Hall

Ch
4-2

Nature of an Internal Audit

All organizations
Strengths
- LG (produk electronic & desain)
- P & G ( marketing) dll
Weaknesses

Fred R. David
Prentice Hall

Ch
4-3

Nature of an Internal Audit

Basis for objectives & strategies:
Internal strengths/weaknesses
External opportunities/threats
Clear statement of mission

Fred R. David
Prentice Hall

Ch
4-4

Key Internal Forces

Functional business areas:

Vary by organization
Divisions have differing strengths and
weaknesses

Fred R. David
Prentice Hall

Ch
4-5

Key Internal Forces

Distinctive Competencies (kompetensi khusus / khas)
A firms strengths that cannot be easily matched
or imitated by competitors

Building competitive advantage involves taking

advantage of distinctive competencies
Strategies designed in part to improve on a firms
weaknesses and turn to strengths
Fred R. David
Prentice Hall

Ch
4-6

Internal Audit
Parallels process of external audit
Gather & assimilate information from:

Management
Marketing
Finance/accounting
Production/operations
Research & development
Management information systems

Fred R. David
Prentice Hall

Ch
4-7

Internal Audit
Involvement in performing an internal strategicmanagement audit provides vehicle for
understanding nature and effect of decisions in
other functional business areas of the firm.

Fred R. David
Prentice Hall

Ch
4-8

Internal Audit
Key to organizational success:
Coordination and understanding among
managers from all functional areas

Fred R. David
Prentice Hall

Ch
4-9

Internal Audit
Functional relationships:
Number and complexity increases relative to
organization size

Fred R. David
Prentice Hall

Ch
4-

Integrating Strategy and Culture

Organizational Culture

Pattern of behavior developed by an

organization as it learns to cope with its
problem of external adaptation and internal
integrationis considered valid and taught to
new members

Fred R. David
Prentice Hall

Ch
4-

Integrating Strategy and Culture

Organizational Culture -

Resisten terhadap perubahan

Dapat merepresentasikan strength atau

weakness terbesar perusahaan.

Fred R. David
Prentice Hall

Ch
4-

Integrating Strategy and Culture

Cultural products

Nilai
Keyakinan
Simbol
Bahasa
Kisah
Legenda dll
Fred R. David
Prentice Hall

Ch 4-13

Integrating Strategy and Culture

Culture dapat menghambat strategic mgt:
1.

Kadang tidak mampu memahami perubahan

eksternal karena sangat bertumpu pada
keyakinan yang dipegang teguh

2.

Bila budaya tsb sudah terbukti berhasil dimasa

lampau, cenderung tetap menggunakannya meski
strategi utama sdh berubah.
Fred R. David
Prentice Hall

Ch
4-

Functions of Management
Five basic activities
Planning
Organizing
Motivating
Staffing
Controlling

Fred R. David
Prentice Hall

Ch
4-

Functions of Management
Function

Stage When Most

Important

Planning

Strategy Formulation

Organizing

Strategy Implementation

Motivating

Strategy Implementation

Staffing

Strategy Implementation

Controlling

Strategy Evaluation
Fred R. David
Prentice Hall

Ch
4-

Functions of Management
Planning

Proses, dimana orang dapat menentukan usaha,

jalan yang paling efektif untuk meraih tujuan
dan mempersiapkan diri terhadap kesulitan
yang mungkin timbul
Jembatan : kondisi saat ini vs masa depan
Menambah kemungkinan tercapainya suatu
tujuan
Fred R. David
Prentice Hall

Ch
4-

Planning

Forecasting
Establishing objectives

Planning

Devising strategies

Developing policies
Setting goals
Fred R. David
Prentice Hall

Ch
4-

Functions of Management
Organizing
Pencapaian upaya yang terkoordinasi terkait :
a. Pendefinisian hubungan tugas dan wewenang
Spesialisasi kerja Penentuan siapa melakukan
apa dan siapa yg harus melakukan
pertanggungjawaban kepada siapa
b. Penggabungan pekerjaan kedepartemen
(Departmentalization)
c. Pendelegasian wewenang.
Ch
4-

Functions of Management

Keuntungan spesialisasi kerja

Adam Smith pabrik pin / peniti

1 orang menarik kawat
Orang kedua meluruskan
Orang ketiga memotongnya
Orang keempat meruncingkan
Orang kelima memlintir
10 orang yang bekerja dengan cara demikian mampu
memproduksi 48000 pin/ hari. Bila mengerjakan sendirisendiri untuk semua proses, @ maksimal 20 pin / hari
Fred R. David
Prentice Hall

Ch
4-

Organizing

Organizing
Organizing
Organizing

Organizational
design
Organizational
Organizational design
design
Job
Job
Job specialization
specialization
specialization
Job
Job
Job descriptions
descriptions
descriptions
Job
Job
Job specifications
specifications
specifications
Span
of
control
Span
Span of
of control
control
Unity
Unity
Unity of
of
ofcommand
command
command
Coordination
Coordination
Coordination
Job
Job
Job design
design
design
Job
Job
Job analysis
analysis
analysis
Fred R. David
Prentice Hall

Ch
4-

Functions of Management
Motivating

Influencing people to accomplish specific

objectives

Tujuan, strategi dan kebijakan akan kecil kemungkinannya

untuk berhasil bila manajer dan karyawan tidak
termotivasi menerapkan strategi yang dirumuskan.

Communication is a major component

Komunikasi 2 arah harus baik

Fred R. David
Prentice Hall

Ch
4-

Motivating

Motivating

Leadership
Communication
Work groups
Job enrichment
Job satisfaction
Needs fulfillment
Organizational
change
Morale
Fred R. David
Prentice Hall

Ch
4-

Motivating
Riset :
Perilaku demokratis dari pihak
pemimpin menghasilkan sikap yang
lebih positif terhadap perubahan
dan produktivitas yang lebih tinggi
daripada perilaku otokratis
Fred R. David
Prentice Hall

Ch
4-

Functions of Management
Staffing
Personnel management
Human resources management

Fred R. David
Prentice Hall

Ch
4-

Staffing
Management

Staffing

Wage & salary admin

Employee benefits
Interviewing
Hiring
Training
Management development
Safety
Labor relations
Career development
Discipline procedures

Fred R. David
Prentice Hall

Ch
4-

Functions of Management
Controlling

Segala aktivitas yang dilakukan untuk

memastikan bahwa operasi actual sejalan
dengan operasi yang direncanakan.
Pengendalian :
Penetapan standar kinerja
Penilaian kinerja individual dan organisasional
Pembandingan kinerja actual dengan std kerja yang
direncanakan
Pengambilan langkah korektif

Fred R. David
Prentice Hall

Ch
4-

Controlling
Management

Controlling

Quality control
Financial control
Sales control
Inventory control
Expense control
Analysis of variances
Rewards
Sanctions
Fred R. David
Prentice Hall

Ch
4-

Management Audit Checklist

Does the firm use strategic-management

concepts?
Are company objectives and goals
measurable and well communicated?
Do managers at all hierarchical levels plan
effectively?
Do managers delegate authority well?
Is the organizations structure appropriate?
Fred R. David
Prentice Hall

Ch
4-

Management Audit Checklist

Are job descriptions and job specifications

clear?
Is employee morale high?
Are employee turnover and absenteeism
low?
Are organizational reward and control
mechanisms effective?
Fred R. David
Prentice Hall

Ch
4-

Marketing

Process of defining, anticipating, creating, and

fulfilling customers needs and wants for products
and services

Fred R. David
Prentice Hall

Ch
4-

Marketing
Customer analysis
2. Selling products/services
3. Product and service planning
4. Pricing
5. Distribution
6. Marketing research
7. Opportunity analysis
1.

Fred R. David
Prentice Hall

Ch
4-

Marketing
Customer surveys
Consumer information

Customer analysis

Market positioning
strategies
Customer profiles
Market segmentation
strategies
Fred R. David
Prentice Hall

Ch
4-

Marketing
Advertising
Sales
Promotion
Selling
Products/services

Publicity
Sales force management
Customer relations
Dealer relations
Fred R. David
Prentice Hall

Ch
4-

Marketing
Test marketing
Brand positioning
Devising warrantees
Product/service
planning

Packaging
Product features/options
Product style
Quality
Fred R. David
Prentice Hall

Ch
4-

Marketing
Forward integration
Discounts
Credit terms
Condition of sale

Pricing
Markups
Stakeholder yang mempengaruhi
penetapan harga :
a. Konsumen
b. Pemerintah
c. Pemasok
d. Distributor
e. Pesaing

Costs
Unit pricing
Fred R. David
Prentice Hall

Ch
4-

Marketing
Warehousing
Channels
Coverage

Distribution

Retail site locations

Sales territories
Inventory levels
Transportation
Fred R. David
Prentice Hall

Ch
4-

Marketing

Data collection
Data input
Marketing research

Data analysis
Support all business
functions

Fred R. David
Prentice Hall

Ch
4-

Marketing
Opportunity
Analysis
Langkah pembuatan cost benefit analysis :
1. Menghitung total biaya yang terkait dgn
suatu keputusan
2. Memperkirakan total manfaat dari
keputusan
3. Membandingkan total biaya dengan
total manfaat

Assessing costs
Assessing benefits
Assessing risks
Cost/benefit/risk
analysis

Fred R. David
Prentice Hall

Ch
4-

Marketing Audit

Are markets segmented effectively?

Is the organization positioned well among
competitors?
Has the firms market share been increasing?
Are present channels of distribution reliable and
cost effective?
Does the firm have an effective sales force?

Fred R. David
Prentice Hall

Ch
4-

Marketing Audit

Does the firm conduct market research?

Are product quality and customer service
good?
Are the firm's products/services priced
appropriately?
Does the firm have an effective promotion,
advertising, and publicity strategy?

Fred R. David
Prentice Hall

Ch
4-

Marketing Audit

Are marketing planning and budgeting

effective?
Do the firms marketing managers have
adequate experience and training

Fred R. David
Prentice Hall

Ch
4-

Finance/Accounting
Determining financial strengths and weaknesses
key to strategy formulation
Investment decision (Capital budgeting)

Financing decision

Alokasi dan realokasi modal dan sumber daya untuk

berbagai proyek, produk, asset dan divisi
Menentukan struktur modal terbaik untuk perusahaan

Dividend decision

Fred R. David
Prentice Hall

Ch
4-

Internal Audit
Financial Ratio Analysis:
Kompleksitas hubungan diantara area fungsional
suatu bisnis
Misal : pemasaran tidak efektif, kebijakan
manajemen yang buruk, system informasi
manajemen yang lemah

Fred R. David
Prentice Hall

Ch
4-

Basic Financial Ratios

Firms ability to meet
its short-term
obligations
Liquidity ratios

Ratios
Current ratio

Mengukur kemampuan perusahaan

untuk memenuhi kewajiban jangka
pendek yang akan jatuh tempo

Quick
ratio
Fred R. David
Prentice Hall

Ch
4-

Basic Financial Ratios

Extent of debt
financing
Ratios
Leverage ratios

Debt-to-total-assets

Debt-to-equity
Mengukur sejauh mana sebuah
perusahaan didanai oleh hutang

Long-term debt-to-equity
Times-interest earned
Fred R. David
Prentice Hall

Ch
4-

Basic Financial Ratios

Effective use of firms
resources
Ratios
Inventory-turnover

Activity ratios
Mengukur seberapa efektif sebuah
perusahaan menggunakan sumber
dayanya

Fixed assets turnover

Total assets turnover

Accounts receivable turnover
Average collection period
Fred R. David
Prentice Hall

Ch
4-

Basic Financial Ratios

Effectiveness shown
by returns on sales
and investment
Ratios
Profitability ratios

Gross profit margin

Operating profit margin

Mengukur keefektifan manajemen

secara keseluruhan seperti yang
ditunjukkan oleh return yang
diperoleh dari penjualan dan investasi

Net profit margin

Return on total assets (ROA)
Fred R. David
Prentice Hall

Ch
4-

Basic Financial Ratios

Effectiveness shown
by returns on sales
and investment
Ratios
Profitability ratios
(continued)
Mengukur keefektifan manajemen
secara keseluruhan seperti yang
ditunjukkan oleh return yang
diperoleh dari penjualan dan investasi

Return on stockholders equity

(ROE)
Earnings per share
Price-earnings ratio
Fred R. David
Prentice Hall

Ch
4-

Basic Financial Ratios

Firms ability to
maintain economic
position
Ratios
Growth ratios
Sales
Mengukur kemampuan perusahaan
untuk mempertahankan posisi
ekonominya ditengah pertumbuhan
iekonomi dan industri

Net income
Earnings per share

Dividends per share

Fred R. David
Prentice Hall

Ch
4-

Finance/Accounting Audit

Where is the firm strong and weak as indicated by

financial ratio analysis?
Can the firm raise needed short-term capital?
Can the firm raise needed long-term capital
through debt and/or equity?
Does the firm have sufficient working capital?
Are capital budgeting procedures effective?
Fred R. David
Prentice Hall

Ch
4-

Finance/Accounting Audit

Are dividend payout policies reasonable?

Does the firm have good relations with its
investors and stockholders?
Are the firms financial managers experienced and
well trained?

Fred R. David
Prentice Hall

Ch
4-

Production/Operations

Process
Capacity
Inventory
Workforce
Quality

Fred R. David
Prentice Hall

Ch
4-

Production/Operations
Design of facility
Process
Choice of technology

Keputusan proses
berkaitan dengan
rancangan system
produksi fisik

Facility layout
Process flow analysis
Facility location
Line balancing
Process control
Fred R. David
Prentice Hall

Ch
4-

Production/Operations
Capacity

Forecasting

Facilities planning
Keputusan kapasitas
kerkaitan dengan
penentuan output
optimal

Aggregate planning
Scheduling
Capacity planning
Queuing analysis
Fred R. David
Prentice Hall

Ch
4-

Production/Operations

Inventory
Raw material
Work in process
Finished goods
Materials handling

Fred R. David
Prentice Hall

Ch
4-

Production/Operations
Workforce
(tenaga kerja)

Job design

Work measurement
Job enrichment
Work standards
Motivation techniques

Fred R. David
Prentice Hall

Ch
4-

Production/Operations
Quality
Memastikan hanya
memproduksi barang
dan jasa dengan
kualitas yang tinggi

Quality control
Sampling

Testing
Quality assurance
Cost control

Fred R. David
Prentice Hall

Ch
4-

Production/Operations Audit

Are suppliers of raw materials, parts, and

subassemblies reliable and reasonable?
Are facilities, equipment, machinery, and offices in
good condition?
Are inventory-control policies and procedures
effective?

Fred R. David
Prentice Hall

Ch
4-

Production/Operations Audit

Are quality-control policies and procedures

effective?
Are facilities, resources, and markets strategically
located?
Does the firm have technological competencies?

Fred R. David
Prentice Hall

Ch
4-

Research and Development

Development of new products before

competition
Improving product quality
Improving manufacturing processes to
reduce costs

Fred R. David
Prentice Hall

Ch
4-

Research and Development

R&D budgets

Financing as many
projects as possible
Use percentage-of-sales
method

Budgeting relative to
competitors
Deciding how many
successful new
products are needed
Fred R. David
Prentice Hall

Ch
4-

Research and Development Audit

Does the firm have R&D facilities? Are they

adequate?
If outside R&D firms are used, are they cost
effective?
Are the organizations R&D personnel well
qualified?
Are R&D resources allocated effectively?

Fred R. David
Prentice Hall

Ch
4-

Research and Development Audit

Are management information and computer

systems adequate?
Is communication between R&D and other
organizational units effective?
Are present products technologically competitive?

Fred R. David
Prentice Hall

Ch
4-

Management Information Systems

Purpose

Improve performance of an enterprise by

improving the quality of managerial decisions.

Fred R. David
Prentice Hall

Ch
4-

Management Information Systems

Information Systems
Security
User-friendly
E-commerce

Fred R. David
Prentice Hall

Ch
4-

Management Information Systems

Audit

Do all managers in the firm use the

information system to make decisions?
Is there a chief information officer or
director of information systems position in
the firm?
Are data in the information system updated
regularly?
Fred R. David
Prentice Hall

Ch
4-

Management Information Systems

Audit

Do managers from all functional areas of

the firm contribute input to the information
system?
Are there effective passwords for entry into
the firms information system?
Are strategists of the firm familiar with the
information systems of rival firms?
Fred R. David
Prentice Hall

Ch
4-

Management Information Systems

Audit

Is the information system user-friendly?

Do all users of the information system
understand the competitive advantages that
information can provide firms?
Are computer training workshops provided
for users?
Is the firms system being improved?
Fred R. David
Prentice Hall

Ch
4-

Internal Analysis (IFE)

Five-Step Process:

List key internal factors (10-20)

Strengths

& weaknesses

Assign weight to each (0 to 1.0)

Sum

of all weights = 1.0

Fred R. David
Prentice Hall

Ch
4-

Internal Analysis (IFE)

Assign 1-4 rating to each factor
Firms

current strategies response to the factor

Sangat lemah (1), Lemah (2), Kuat (3) dan Sangat
Kuat (4). Strength ( 3 4) dan Weakness (1 2)

Multiply each factors weight by its rating

Produces

a weighted score

Fred R. David
Prentice Hall

Ch
4-

Internal Analysis (IFE)

Sum the weighted scores for each

Determines

organization

the total weighted score for the

Highest

possible weighted score for the

organization is 4.0; the lowest, 1.0. Average = 2.5

Skor total dibawah 2,5 mencirikan organisasi yang lemah

secara internal. Bila berada diatas 2,5 posisi internal
kuat,

Fred R. David
Prentice Hall

Ch
4-

Internal Analysis (IFE)

Mandalay Bay

Weight

Rating

Weighted
score

Largest casino company in world

.05

.20

Room occupancy rates over 95%

.10

.40

Increasing free cash flows

.05

.15

Owns 1 mile on Las Vegas strip

.15

.60

Strong management team

.05

.15

Buffets at most facilities

.05

.15

Minimal comps provided

.05

.15

Long-range planning

.05

.20

Reputation as family-friendly

.05

.15

Financial ratios

.05

.15

Internal Strengths

Fred R. David
Prentice Hall

Ch
4-

Internal Analysis (IFE)

Mandalay Bay

Weight

Rating

Weighted
score

Most properties located in Las Vegas

.05

.05

Little diversification

.05

.10

Family reputation, not high rollers

.05

.10

Laughlin properties

.10

.10

Recent loss of joint ventures

.10

.10

TOTAL (including Strengths)

1.0

Internal Weaknesses

Fred R. David
Prentice Hall

2.75

Ch
4-

Internal Analysis (IFE)

Mandalay Bay (in the previous example),

has a total weighted score of 2.75
indicating that the firm is above
average in its overall internal strength

Fred R. David
Prentice Hall

Ch
4-