Professional Documents
Culture Documents
Internal Audit
An excellent vehicle for improving the Provides more opportunity to process of communication within the understand how jobs, departments organization and division fit into the organization
Information from:
Management Marketing Finance/accounting
evaluate information
Requires effective coordination among management, marketing, finance accounting, production operations, research & development, and management information systems managers to understand the nature and effect of decisions in different areas of a firm
Internal resources are more important than external factors in achieving and sustaining competitive advantage
1. Physical resources
2. Human resources
3. Organizational resources
Resources are actually what helps a firm to exploit opportunities and neutralize threats
Type
Empirical Indicators
Nature
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
Heroes
Cultural Products
Rites
Symbols
Myths
Rituals
Management
Function Planning Organizing Motivating Staffing Controlling Stage When Most Important
Strategy Formulation
Strategy Implementation
Strategy Implementation
Strategy Implementation
Strategy Evaluation
Marketing
Customer Needs/Wants for Products/Services
1. Defining 2. Anticipating
3. Creating
4. Fulfilling
Marketing
Marketing Functions
1. Customer analysis
2. Selling products/services 3. Product & service planning
4. Pricing
5. Distribution 6. Marketing research 7. Opportunity analysis
Finance/Accounting
Finance/Accounting Functions
1. Investment decision (Capital budgeting) 2. Financing decision 3. Dividend decision 4. Financial analysis Key financial ratios
Production/Operations
Production/Operations Functions
Process Capacity
Inventory
Workforce Quality
Accounting Ratios
How has each ratio changed over time? 2. How does each ratio compare to industry norms? 3. How does each ratio compare with key competitors? BNI
Debt-to-total-assets ratio Debt-to-equity ratio Long-term debt-to-equity ratio Times-interest-earned (coverage) ratio
Activity ratios measure how effectively a firm is using its resources.
Inventory turnover Fixed assets turnover Total assets turnover Accounts receivable turnover Average collection period
Profitability ratios measure managements overall effectiveness as shown by returns generated on sales and investment.
Gross profit margin Operating profit margin Net profit margin Return on total assets Return on stockholders equity Earnings per share Price-earnings ratio
Growth ratios measure the firms ability to maintain its economic position in the growth of the economy and industry.
Information Systems Audit Checklist 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? 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? 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 of the information system? Is the firms information system continually being improved in content and user-friendliness?