Strategy formulation through internal assessment
Strategy formulation through internal assessment entails thorough internal analysis of business mission to establish long term objectives. Identification of external opportunities and threats together with internal strengths and weaknesses and a clarion mission statement basically formulates the strategies and the objectives of a business. In this paper we shall discuss the various methodologies applicable when carrying out internal assessment.
Approach based on resources.
Under this approach, the human, physical and organizational resources are thoroughly grilled to ensure that plant, machines, raw materials, technological and locational resources states are well noted. Additionally, the intelligence, knowledge, skills, the employees, training, experience and abilities are as well taken care of. The approach’s effectiveness and performance adequacy is still not met and underrated when information systems, patents, firm structure, planning processes, trademarks, databases and copyrights are not taken into account.
The pivot point approach
This approach entails the key internal forces such as; the management systems which has to be well planned, organized, motivated and properly supervised for quality assurance. Marketing too as an internal force needs customer analysis, service planning, marketing research, pricing and opportunity analysis. Firm’s liquidity, capital profitability, asset utilization, cash flow, leverage and working capital are also determined through financial procedures and accounting. Production, research, operation, development, and information system is also assist in determination of inventory workforce, capacity building decision making processes and quality assurance.
Value chain analysis
This entails determination of associated costs in relation to organizational activities this can be traced from business records and it helps in determination of profits and losses.
Internal factor evaluation(IFE) matrix.
In conclusion, the above stated approaches inclusivity and intensity in strategic management in the internal functioning grilling outstands to be the best grid in the management cycle.