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Internal Scanning & Analysis

Internal Scanning & Analysis. Prepared by Mavic Pineda for INFOSY1. Approaches to Internal Scanning. 7-S Framework (by Tom Peters) PIMS (Profit Impact of Market Strategy) Analysis Value Chain Analysis (by Michael Porter) Functional Analysis (by H.I. Ansoff). Seven S Framework. Structure.

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Internal Scanning & Analysis

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  1. Internal Scanning & Analysis Prepared by Mavic Pineda for INFOSY1

  2. Approaches to Internal Scanning • 7-S Framework (by Tom Peters) • PIMS (Profit Impact of Market Strategy) Analysis • Value Chain Analysis (by Michael Porter) • Functional Analysis (by H.I. Ansoff)

  3. Seven S Framework Structure Staff Strategy ORGANIZATION Shared Values Skills Style (management) Systems (and procedures)

  4. Profit Impact of Market Strategy • Aimed at discovering the empirical principles that determine which strategy under which conditions produces what results in terms of return on investment and cash flows regardless of the product or service.

  5. Profit Impact of Market Strategy Companies with High Rates of Return • low investment intensity • high market share • high relative product quality • high capacity utilization • high operating effectiveness • low direct costs per unit

  6. Functional Analysis • Ansoff proposes the organization of the corporation’s skills & resources into a “competence profile” translated to typical business functions; and examination of the corporation’s current structure, culture & resources.

  7. Value Chain Analysis • Examine the value chain of a particular product or service in terms of the various activities involved in the production of a product or service. • Examine the “linkages” among the value activities. (Linkages are the connections bet the way one value activity is performed & the cost of performance of another activity.) • Examine the potential synergies among the corporation’s products or business units.

  8. Importance of Value Chain • Chain of events or activities • Give value to the customer (internal/external) • Primary and support business process

  9. Value Chain Example

  10. Simple Functional Divisional Conglomerate Beliefs Expectations Values learned & shared by the members & transmitted to the next generation of members. Structure Culture

  11. Resources • Financial • Physical • Human • Organizational systems • Technological capabilities

  12. Group Activity • Enumerate the basic tasks & functions of each of the basic functional unit: • Marketing • Finance • Research & Development • Operations - Manufacturing • Operations - Banking • Operations - Hospital/Insurance • Human Resources • Information Systems

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