INTERNAL ANALYSIS

CABRERA, CASTILLO, DELA CRUZ, SUGITA

 INTERNAL ENVIRONMENT

 The conditions, entities, events, and factors within an organization that influence
its activities and choices, particularly the behavior of the employees. Factors that
are frequently considered part of the internal environment include the
organization's mission statement, leadership styles, and its organizational culture.

 The internal environment of a corporation consists of variables (Strengths and

Weaknesses) that are within the organization itself and are not usually within the
short-run control of top management.
 INTERNAL ENVIRONMENT
 The internal environment of the business includes all the forces and factors
inside the organization which affect its marketing operations. These components
can be grouped under the Five Ms of the business, which are:
 Men
 Money
 Machinery
 Materials
 Markets
INTERNAL ANALYSIS

 An internal analysis is an exploration of your organization's competency, cost

position and competitive viability in the marketplace.

 A review of an organization's strengths and weaknesses that focuses on those

factors within its domain
INTERNAL ANALYSIS

 A detailed internal analysis will typically give a business a good sense of its basic
competencies and the desirable improvements that it can make to help meet the
requirements of potential customers within its intended market.
 PRIMEFACT CHECKLIST
 PEOPLE
 REPUTATION
 INTELLECTUAL PROPERTY
 MARKET INFORMATION
 ETHOS
 FINANCES
 AGILITY
 COLLABORATORS
 TALENTS
WHAT ARE THESE INTERNAL ENVIRONMENT?

A. Corporate Structure

B. Corporate Culture
C. Corporate Resources
INTERNAL ENVIRONMENT

A. Corporate Structure

1. Simple Structure
2. Functional Structure
3. Divisional Structure
INTERNAL ENVIRONMENT

Owner - Manager

 Simple Structure
Workers
INTERNAL ENVIRONMENT

 Functional Structure Top Management

Manufacturing Sales Finance Personnel

 INTERNAL ENVIRONMENT

 Divisional Structure Top Management

Product Division A Product Division A

Sales Finance Sales Finance

Manufacturing Personnel Manufacturing Personnel

INTERNAL ENVIRONMENT

 Conglomerate Structure

 Appropriate for large corporations with many product lines in several unrelated
industries
 A variant of the divisional structure it is typically an assemblage of legally independent
firms (subsidiaries) operating under one corporate umbrella but controlled through
the subsidiaries board of directors.
INTERNAL ENVIRONMENT

Corporate Culture
 refers to the beliefs and behaviors that
determine how a company's employees and
management interact and handle outside business
transactions. Often, corporate culture is implied,
not expressly defined, and develops organically
over time from the cumulative traits of the
people the company hires
INTERNAL ENVIRONMENT

Corporate Resources
Financial
Physical
Human assets
functional concepts
procedural techniques
 HUMAN RESOURCE AUDIT

 A comprehensive method (or means) to review current human resources

policies, procedures, documentation and systems to identify needs for
improvement and enhancement of the HR function as well as to
assess compliance with ever-changing rules and regulations.
 HUMAN RESOURCE AUDIT

 Why is it important?
 HR Audit will reveal gap areas that can potentially lead to costly legal disputes
and governmental fines.
HUMAN RESOURCE AUDIT

 Hiring and Onboarding

 Benefits
 Compensation
 Performance evaluation process
 Termination process and exit interviews
 Job descriptions
 Form review
 Personnel file review
THANK YOU!