Strategic Internal Environment Analysis

Section 1) INTRODUCTION

The purpose of strategic internal environment analysis is to conduct technical

analysis by measuring return on investment and to conduct marketing performance

analysis. The assignment will include information analysis between firm 4 and firm 6.

The analysis comparison will be also discussed after technical analysis.

Return on investment measures overall profitability and it indicates the relationship

between net profit and capital employed in the business. Here, return for calculating

return on investment will mean the net profit before interest, tax and dividend.

Section 2) TECHNICAL ANALYSIS - ROI

Return on Investment Period

Net Profit after Tax

Firm No. & Interest / x 100% ROI

Capital Employed

4th Quarter 2001

74602 /
Firm No. 4 x 100% 7.01%
540000 + 523966
74602 /
Firm No. 6 x 100% 7.01%
540000 + 523966

1st Quarter 2002

Firm No. 4 56637 / x 100% 5.05%

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 Strategic Internal Environment Analysis

540000 + 580603
161639 /
Firm No. 6 x 100% 13.13%
540000 + 685605

2nd Quarter 2002

184326 /
Firm No. 4 x 100% 20.05%
154194 + 764930
166794 /
Firm No. 6 x 100% 11.97%
540000 + 852400

3rd Quarter 2002

295095 /
Firm No. 4 x 100% 23.86%
176406 + 1060025
105632 /
Firm No. 6 x 100% 8.6%
268248 + 958032

4th Quarter 2002

186587 /
Firm No. 4 x 100% 15.54%
19606 + 1180710
222678 /
Firm No. 6 x 100% 13.96%
348117 + 1246613

1st Quarter 2003

159016 /
Firm No. 4 x 100% 5.7%
1348117 + 1405629
152227 /
Firm No. 6 x 100% 9.8%
19606 + 1332938

2nd Quarter 2003

258742 /
Firm No. 4 x 100% 12.68%
375886 + 1664372
Firm No. 6 229645 / x 100% 14.51%

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 Strategic Internal Environment Analysis

19606 + 1562583

4th Quarter 2003

252985 /
Firm No. 4 x 100% 10.23%
327765 + 2142940
181053 /
Firm No. 6 x 100% 9.3%
19606 + 1917012

1st Quarter 2004

198294 /
Firm No. 4 x 100% 7.68%
237391 + 2341234
254798 /
Firm No. 6 x 100% 11.62%
19606 + 2171811

2nd Quarter 2004

155080 /
Firm No. 4 x 100% 5.77%
188180 + 2496314
387514 /
Firm No. 6 x 100% 14.79%
19606 + 2559325

3rd Quarter 2004

160997 /
Firm No. 4 x 100% 5.76%
135688 + 2657312
348542 /
Firm No. 6 x 100% 12.19%
18500 + 2839878

4th Quarter 2004

162046 /
Firm No. 4 x 100% 5.5%
79724 + 2819358
300950 /
Firm No. 6 x 100% 9.7%
18000 + 3062208

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 Strategic Internal Environment Analysis

1st Quarter 2005

155071 /
Firm No. 4 x 100% 5.1%
25000 + 2969655
300950 /
Firm No. 6 x 100% 9.7%
18000 + 3062208

2nd Quarter 2005

112614 /
Firm No. 4 x 100% 3.69%
24500 + 3020014
370784 /
Firm No. 6 x 100% 10.24%
17250 + 3611510

3rd Quarter 2005

99131 /
Firm No. 4 x 100% 41%
24000
351186 /
Firm No. 6 x 100% 20%
17000

According to the below analysis and comparison it can be observed that firm no. 6 is

performing better most of the times than form no. 4.

Period Comparison between firm no. 4 and firm no. 6

4th Quarter 2001  Both the firm is performing at the same level.
1st Quarter 2002  Firm No. 6 is performing better.
2nd Quarter 2002
3rd Quarter 2002  Firm No. 4 is performing better.
4th Quarter 2002
1st Quarter 2003  Firm No. 6 is performing better.
2nd Quarter 2003  Firm No. 6 is performing better.
4th Quarter 2003  Firm No. 4 is performing better.
1st Quarter 2004
2nd Quarter 2004
3rd Quarter 2004  Firm No. 6 is performing better.
4th Quarter 2004

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 Strategic Internal Environment Analysis

1st Quarter 2005  Firm No. 6 is performing better.

2nd Quarter 2005  Firm No. 6 is performing better.
3rd Quarter 2005  Firm No. 4 is performing better.

Section 3) CONCLUSION

The operational management of firm no. 4 is satisfactory but firm no. 6 is performing

better. There should be effective capital structure planning for gaining overall market

share and performance. Return on investment is not up to the level of firm no. 4 but

satisfactory and not below the average.

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 Strategic Internal Environment Analysis

Section 4) REFERENCES

SA Siddique. 2008. Financial Statement Analysis. New Delhi, India: Laxmi

Publications.

SA Siddique. 2008. Financial Management. New Delhi, India: Laxmi Publications.

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 Strategic Internal Environment Analysis

Section 5) EXTERNAL LINK

Contact Miss Project

Noora Al Shehhi

United Arab Emirates

Business email: miss.projects@gmail.com

Personal email: snowite19@hotmail.com

Website: http://snowite19.spaces.live.com

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