Name of Student/ SECTION: (LAST NAME, FIRST NAME / _ OM)

Chapter FIVE
COMPANY ANALYSIS of (WRITE HERE THE NAME OF COMPANY)
(WRITE HERE NATURE OF BUSINESS AND PRODUCT OR SERVICES BEING OFFERED BY THE COMPANY)

Introduction [– 3 quality sentences]

5.1. Management
(Management Variables: )

1st paragraph [– 3 quality sentences]

(Min of 4 sections, Max of 6 sections)

5.1.1. Org Structure (Including Top Management and Leadership)
Four Standard sections under
5.1.2. Culture
5.1. Management
5.1.3. Company Plans and Objectives
5.1.4. Current Strategies
5.1.5.
Other 2 sections can be added
5.1.6. here. (Optional)

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

Relevance of the Management of the Company

Resources Potential S1. (Resource)
Potential W1. (Resource)
Capabilities Potential S2. (Capability)
Potential W2. (Capability)

5.2. Marketing
(Marketing Variables: )

1st paragraph [– 3 quality sentences]

(Min of 4 sections, Max of 6 sections)

5.2.1. Product Description and Planning (or Service Description and Planning)
Four Standard sections under
5.2.2. Customer Analysis or Target market or Market Segmentation
5.2. Marketing
Show here the table of Target Market
5.2.3. Selling, Advertising, Distribution of Products/Services
Table of Marketing Communication Strategies (Table with 2 column Market strategy and
Description/ Remarks, this must show the TV advertising effort, store design, Social
Media, Facebook, Youtube commercial, billboards, participation in trade fairs.)
5.2.4. Marketing Research
Market Share information is strongly recommended here

5.2.5 Other sections can be added

here. (Optional)
5.2.6

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

Relevance of Marketing of the Company

Resources potentialS1. (Resource)
potentialW1. (Resource)
Capabilities potentialS2. (Capability)
potentialW2. (Capability)

5.3. Finance / Accounting

(Finance/ Accounting Variables: )

1st paragraph [– 3 quality sentences]

(Min of 5 sections, Max of 6 sections)

5.3.1. Liquidity Ratios
[– 1 or 2 quality sentences for definition]
Table of Computations with Observations
[– 1 or 2 quality sentences for analysis]

5.3.2. Leverage Ratios

[– 1 or 2 quality sentences for definition]
Table of Computations with Observations
[– 1 or 2 quality sentences for analysis]

5.3.3. Activity Ratios

[– 1 or 2 quality sentences for definition]
Table of Computations with Observations
[– 1 or 2 quality sentences for analysis]

5.3.4. Profitability Ratios

[– 1 or 2 quality sentences for definition]
Table of Computations with Observations
[– 1 or 2 quality sentences for analysis]

5.3.5. Growth Ratio

[– 1 or 2 quality sentences for definition]
Table of Computations with Observations
[– 1 or 2 quality sentences for analysis]

5.3.6. Other Finance / Accounting Concern

Table on Relevance of the Finance / Accounting of the Company

5.4. Productions / Operations

(Productions/ Operations Variables: )

1st paragraph [– 3 quality sentences]

(Min of 5 sections, Max of 6 sections)
5.4.1. Main Process (and/or other process operations)
Description of the core process Five Standard sections under
A.4. Productions / Operations
5.4.2. Capacity
5.4.3. Inventory and Supply Chain
5.4.4. Workforce
5.4.5. Quality
Other sections can be added here.
5.4.6. Others (purchasing, maintenance) (Optional)

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

Table on Relevance of the Productions /Operations of the Company showing 2

strengths and 2 weaknesses

5.5. Research and Development (Student can rename this as Innovation Department especially for
Services)
(Research and Development or innovation Variables: )

1st paragraph [– 3 quality sentences]

(Min of 2 sections, Max of 6 sections)

5.5.1. Developing New Products/ Services (Future Plans)Two Standard sections under
5.5. Research and Development
5.5.2. Improving Existing Product (or service) and its Quality
5.5.3. Other Research and Development Programs and Innovations
5.5.4.
5.5.5. Other sections can be added
here.
5.5.6.

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

Table on Relevance of the Research and Development of the Company

5.6. Other Functional Area (MIS, HR, CSR, Sustainability Programs & Other
Analysis)
(Other Functional Variables: )

1st paragraph [– 3 quality sentences]

(Min of 4 sections, Max of 6 sections)

5.6.1. IT Infrastructure (Software and Hardware)
5.6.2. Human Resource / Talent Management Four standard sections under
5.6. MIS, HR, CSR and Others
5.6.3. Corporate Social Responsibility and Sustainability Programs
5.6.4. Legal Department (or Ethics)
5.6.5. Others (like Corporate Image) Other sections can be added
here.
5.6.6.

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

Table on Relevance of the Other Aspect of the Company

5.7. McKinsey 7S
(McKinsey Elements: )

1st paragraph [– 3 quality sentences]

McKinsey Tables

Table on Relevance of the McKinsey Analysis of the Company

5.8. Potential Strengths and Potential Weaknesses Identified from Functional and
McKinsey Analysis
 Table of List of All Potential Strengths
Table of List of All Potential Weaknesses

5.9. Summary of Key Strengths and Weaknesses

Table of Top Strengths (More than 5 or less than 5 strengths is acceptable)
Table of Top Weaknesses (More than 5 or less than 5 weaknesses is acceptable)

5.10. Internal Factor Evaluation (IFE)

IFE Matrix
Interpretation of IFE: [– 3 quality sentences for Interpretation of IFE]
D E T A I L S

Name of Student/ Section: (LAST NAME, FIRST NAME / _ OM)

FONT TYPE: ARIAL

CHAPTER FIVE
FONT SIZE: 12
COMPANY ANALYSIS of (WRITE HERE THE NAME OF COMPANY) SPACING: 1.5
(Delete this)
(WRITE HERE the PRODUCT OR SERVICES BEING OFFERED BY THE COMPANY)

Introductory Paragraph for Chapter 5. Before the executives of the company can start a
new strategy, they must reach common understanding of the company’s current
position. Note that Internal Analysis of this chapter will follow Functional Area analysis
and McKinsey 7s analysis. Functional Area analysis of business contains Management,
Marketing, Finance and Accounting, Productions/Operations, Research and
Development and Management Information Systems. There will be subareas within
each function. Additional concept which is McKinsey should be employed in analyzing
the company. Student should also explain here the nature and process of performing
an internal audit and analyzing the internal forces (check pages 124 to 127). This is
where the student will apply their knowledge and skills in business law. Business Law
is the class of law that are concerned primarily with rules of conduct prescribed by
government for the performance of business transactions. The law seeks to establish
rules so that we will be able to peacefully resolve those disputes that arise and avoid
disputes. [– 3 quality sentences]

In this chapter, the student may use the Resource-Based View (RBV) approach wherein
internal resources were analyzed in order for a firm to achieve and sustain the
competitive advantage. Competitive advantage can be defined as anything that a firm
does especially well compared to rival firms.

5.1. Management
(Management Variables under 5.1: write here the series variable titles or section titles
here that are separated by comma; Show minimum of 4 up to 6 variables here. Listing
here must be the same with all sections)
For quick checking of what must be analyzed as Management Variable/Section, please
refer to p. 130 – 134 or Table 4-3 in textbook

Importance, definition and principles of Management; Emphasize how this functional

area is different from the other functions. [– 3 quality sentences] (This paragraph is very
important because this will give a guide or reference on what is to be discussed)

After showing the Management Variables, the body of “5.1. Management” must show its
detailed explanations by assessing and showing 4 sections up to maximum of 6
sections. To assess the Management Function in a narrative discussion, the student
maybe guided by some questions found in “Management Audit Checklist of Questions”
in page 134 of Textbook. It is expected that there will be supporting tables and figures.
This narrative discussions (or laying down data and information) and explanations
depends on the depth of the situation.

(Min of 4 sections, Max of 6 sections)

5.1.1. Organizational Structure (Including Top Management and Leadership)
(Please draw the Org structure and write here or discuss here the name of the company president or CEO
and/or vice presidents and other executives; Write also here the management style and leadership style. The legal personality,
incorporation and limited liability should be described here. Students can also discuss the entrepreneurial spirit, the visionary
Four Standard
characteristic, accomplishment or biggest contribution of the owner or president to the company. Student sections
can also write under
the superior
5.1. Management
people skill of the president. The hardworking characteristics can be written here as well. If student knows the education background
and expertise of the founder of the company, then here as well. If information is unavailable, student can assume superior
management style for big companies. Write here if there are job positions that are not functioning well anymore or there are
responsibilities that are duplication of work from other department)

5.1.2. Culture
(Mention the beliefs or values that are practiced by the company; Are there evidence that the company follows the excellent
culture? Or Quality culture? Especially small Chinese companies are embracing honesty culture. Some companies are prioritizing customer
satisfaction. Some companies adheres religious practices also; Be careful if the student is writing unworthy (bad) cultures inside the company.)

5.1.3. Company Plans and Objectives

(Mention future plans of the company, like company growth, adding more products and expansion in other
countries, etc)

5.1.4. Current Strategies

(Mention the existing strategies here. Strategy on dealing with suppliers, pricing strategies, hiring strategy, quality strategy, customer engagement
strategy can be mentioned here as well. Example is the Low cost strategy of Cebu pacific, superior Customer service of Giordano, premium or luxury imaging strategy of
Rockwell. This portion of the management requires intensive interview; Feel free to mention if the student didn’t observed a particular strategy, or feel free to write here that the
interviewee didn’t reveal their strategy. In this case, just write generic strategies that are being practiced by company like low cost, differentiation strategy, quick response
strategy, etc.)
 5.1.5. Other sections can be added
here. (Optional)
5.1.6.

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available.]

The student should also discuss here the issues on Culture (page 128 to 129 of the
textbook)

After discussion of each section, Relevance will follow. In the relevance, the student will
conduct resource and capability identification. Specifically the student must identify 1
strength and 1 weakness under resource. Then, 1 strength and 1 weakness under
capabilities will be identified as well.

In the identification of strengths and weaknesses, the student may use the concept of
Resource-Based View (RBV) in which the presence or absence of resource and
capabilities are being evaluated as a basis for company’s assets and determining
whether they can provide the foundation necessary for competitive success in the
marketplace.

Relevance of the Management of the Company

Resources Identify 1 Strength and 1 Weakness that is connected to
(Resources represent inputs into
the company’s production process, Resources found under Management Component
such as capital equipment, the skills
of individual employees, brand Potential S1. (Resource, WE ARE STRICT ON THIS 1 SENTENCE or 1 phrase
names, financial resources, and

with complete thought to any strength or weakness)

talented managers.)

Potential W1. (Resource)

Capabilities Identify 1 Strength and 1 Weakness that is connected to
(Capabilities represent its capacity
to integrate or utilize resources to Capabilities found under Management Component
achieve a desired objective)
Potential S2. (Capability, strength can be good management of the president or people
skills)

(DELETE this additional instruction)

Do not explain here why this

weakness or strengths are
 Potential W2. (Capability, can be poor leadership skills of the president; student
may mention that the company has ineffective annual general meetings especially

votings, for example)

(DELETE this additional instruction)

The format of Strengths and weaknesses sentence must be

“CAUSE”, not “CAUSE-EFFECT”.

Example
Do not write “More employees are staying in company
because of action orientation of the company
president”.

Instead just simply write here “action orientation of the

company president”

Resource is a productive input or asset that is owned or controlled by the firm. Strength
here can be presence of the resource while weakness can be limitation of that resource.

Capability is the capacity of a firm to perform some activity proficiently. Strengths can be
proficiency of the skill or capacity. Weakness can be a limitation or absence, or poor
performance of that capability.

Do not propose any solution in this Chapter. All strategizing and recommendations are
on Chapter 7.

5.2. Marketing
(Marketing Variables under 5.1: write here the series variable titles or section titles here
that are separated by comma; Show minimum of 4 up to 6 variables here. Listing here
must be the same with all sections)

Importance, definition and principles of Marketing; Emphasize how this functional area
is different from the other functions. [– 3 quality sentences] (This paragraph is very
important because this will give a guide or reference on what is to be discussed)

After showing Marketing Variables, the body of “5.2. Marketing” must show its detailed
explanations by assessing and showing 4 sections up to maximum of 6 sections. To
assess the Marketing Function in a narrative discussion, the student maybe guided by
some questions found in “Marketing Audit Checklist of Questions” in page 138 of
Textbook. It is expected that there will be supporting tables and figures. This narrative
discussions (or laying down data and information) and explanations depends on the
depth of the situation. Take note that the marketing function of a company can be seen
or felt by the students since marketing is bringing the product in an outside customer.
So the students can feel, in a way, on how to company advertise, sell products, show in
social media.

(Min of 4 sections, Max of 6 sections)

5.2.1. Product Description and Planning (or Service Description and Planning)
(This must show or describe the technical attributes of the product with illustrations and pictures, pictures can
be from the internet; Students must also write here on how the product is different compared to that of
competitor. Don’t forget to write the most saleable product. Students may mention the current rules of the
company in terms of product safety, sales contract, negotiable contracts, COD shipments, warranties, product
liability and consumer protection: Please consider the listing of product/s in table format. For those student who
choose service strama company like parlor or spa, it’s a big help if they can actually avail the service so that
they can actually experience it.
The branding must be strongly discussed here.)

5.2.2. Customer Analysis or Target market or Market Segmentation

(Check internet on how target market are being described like gender, Age, class B, C, or target geographical
Four
area, age group, etc; Location and consumer behavior must be written here as well. Please consider the listing Standard
of target sections
customers under
in table format)
5.2. Marketing
Table of Target Markets (Table with 2 columns Target Market and Description)

5.2.3. Selling, Advertising, Distribution of Products/Services

(Show sample posters, pictures of TV ad, leaflet, and endorsers – this can be obtained in fb or website of the
company. Write here the info that was shared by the interviewee regarding the most effective marketing
communication strategy. Selling practices or style of selling or the unique customer service skills of the sales
people can be written here. Regarding advertisement, student can also critique if the celebrity endorser is
effective. Sometimes, the store design is their way to attract customers, hence they don’t need to be active in
TV commercials and in billboards. For those in B2B marketing, student must describe the usual process of
selling. Is the Relationship Marketing being practiced? Is the company conducting events or bazaar, seminar,
public relation event; students may ask the help of marketing students in this section. Legal Advertising can be
mentioned here.)
Table of Marketing Communication Strategies (Table with 2 column Market strategy and
Description/ Remarks, this must show the TV advertising effort, store design, Social
Media use, Facebook, Youtube commercial, billboards, participation in trade fairs.)
5.2.4. Marketing Research
(students may mention that the company is doing excellent marketing research or has informal marketing
research function inside the company. Normally, experienced company has separate marketing research
 department; Strama student may mention an example of recent research observation in the market, customers,
product, technology)
Market Share
5.2.5
Other sections can be added
5.2.6 here. (Optional)

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

After discussion of each section, RELEVANCE will follow. In the analysis, the student
will conduct resource and capability identification. Specifically the student must identify
2 strengths and 2 weaknesses under resources. Then, 1 strength and 1 weakness
under capabilities will be identified as well.

In the identification of strengths and weaknesses, the student may use the concept of
Resource-Based View (RBV) in which the presence or absence of resource and
capabilities are being evaluated as a basis for company’s assets and determining
whether they can provide the foundation necessary for competitive success in the
marketplace.

RELEVANCE of Marketing Analysis of the Company

Resources Identify 1 Strength and 1 Weaknesses that is connected to
(Resources represent inputs into
the company’s production process, Resources found under Marketing Component
such as capital equipment, the skills
of individual employees, brand potentialS1. (Resource)
names, financial resources, and

potentialW1. (Resource)
talented managers.)

Capabilities Identify 1 Strength and 1 Weakness that is connected to Capabilities found

(Capabilities represent its capacity under Marketing Component. Feel free to mention if the company has a
to integrate or utilize resources to
achieve a desired objective) strength or lacks knowledge in warranty, risks in sales like damage, etc)
potentialS2. (Capability)
potentialW2. (Capability)

Resource is a productive input or asset that is owned or controlled by the firm. Strength
here can be presence of the resource while weakness can be limitation of that resource.
DELETE THIS REMINDER.

Student must double check the content of CPM

matrix of Chapter 4: External Analysis. Strengths
and weaknesses must be aligned or the same
here.
Capability is the capacity of a firm to perform some activity proficiently. Strengths can be
proficiency of the skill or capacity. Weakness can be a limitation or absence, or poor
performance of that capability.

Do not propose any solution in this Chapter. All strategizing and recommendations are
on Chapter 7.

5.3. Finance / Accounting

(Finance Variables under 5.3: write here the series variable titles or section titles here
that are separated by comma; Show minimum of 4 up to 6 variables here. Listing here
must be the same with all sections)

Importance, definition and principles of Finance / Accounting; Emphasize how this

functional area is different from the other functions. [– 3 quality sentences] (This
paragraph is very important because this will give a guide or reference on what is to be
discussed)

After showing the Finance / Accounting Variable, the body of “5.3. Finance/ Accounting”
must show its detailed explanations by assessing and showing 4 sections up to
maximum of 6 sections. To assess the Finance / Accounting Function, the student
maybe guided by some questions found in “Finance / Accounting Audit Checklist of
Questions” in page 144 of Textbook. This narrative discussions (or laying down data
and information) and explanations depends on the depth of the situation.

(Min of 5 sections, Max of 6 sections)

5.3.1. Liquidity Ratios
Five Standard sections under
5.3.2. Leverage Ratios
5.3. Finance / Accounting
5.3.3. Activity Ratios
5.3.4. Profitability Ratios
5.3.5. Growth Ratio
5.3.6. Other Finance / Accounting Concern Other sections can be added here.
(Optional)
The standard section to be considered are the financial ratios based on Table 4-6 on
page 141 of Textbook. The student should also write here the year of the 3 financial
reports.

The detailed Financial Ratios are shown below.

5.3.1. Liquidity Ratios

Define and discuss the importance of Liquidity Ratio [– 1 or 2 quality sentences]

Year ( ) Year ( ) Year ( ) Observations

Current ratio =
Show Computation Show Show Computation Is the final value increasing,
Current Assets and the Final Value Computation and and the Final Value decreasing or constant?
Current Liabilities (show the figures the Final Value (show the figures that
that came from (show the figures came from financial
financial reports) that came from reports)
financial reports)
Quick (or acid-test) ratio
= Show Computation Show Show Computation Is the final value increasing,
and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures that
that came from (show the figures came from financial
financial reports) that came from reports)
financial reports)

Analysis:
The student must assess here the observations, the trend in the computed financial
ratios and must also explain the possible reason for such information. [– 1 or 2 quality
sentences] Check page 142 of the book for analysis.

5.3.2. Leverage Ratios

Define and discuss the importance of Leverage Ratio. [– 1 or 2 quality sentences]

Year ( ) Year ( ) Year ( ) Observations

Debt-to-total-assets ratio
Show Computation Show Computation Show Computation Is the final value increasing,
(Show Formula) and the Final Value and the Final Value and the Final Value decreasing or constant?
 (show the figures (show the figures that (show the figures that
that came from came from financial came from financial
financial reports) reports) reports)

Debt-to-equity ratio
Show Computation Show Computation Show Computation Is the final value increasing,
(Show Formula) and the Final Value and the Final Value and the Final Value decreasing or constant?
(show the figures (show the figures that (show the figures that
that came from came from financial came from financial
financial reports) reports) reports)

Long-term debt-to-equity Show Computation Show Computation Show Computation Is the final value increasing,
ratio and the Final Value and the Final Value and the Final Value decreasing or constant?
(show the figures (show the figures that (show the figures that
(Show Formula) that came from came from financial came from financial
financial reports) reports) reports)

Times-interest-earned Show Computation Show Computation Show Computation Is the final value increasing,
(or coverage) ratio and the Final Value and the Final Value and the Final Value decreasing or constant?
(show the figures (show the figures that (show the figures that
(Show Formula) that came from came from financial came from financial
financial reports) reports) reports)

Analysis:
The student must assess here the observations, the trend in the computed financial
ratios and must also explain the possible reason for such information. [– 1 or 2 quality
sentences] Check page 142 of the book for analysis.

5.3.3. Activity Ratios

Define and discuss the importance of Activity Ratio. [– 1 or 2 quality sentences]

Year ( ) Year ( ) Year ( ) Observations

Inventory turnover
Show Computation Show Show Computation Is the final value increasing,
(Show Formula) and the Final Value Computation and and the Final Value decreasing or constant?
the Final Value
 (show the figures (show the figures (show the figures that
that came from that came from came from financial
financial reports) financial reports) reports)

Fixed assets turnover

Show Computation Show Show Computation Is the final value increasing,
(Show Formula) and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures that
that came from (show the figures came from financial
financial reports) that came from reports)
financial reports)

Total assets turnover Show Computation Show Show Computation Is the final value increasing,
and the Final Value Computation and and the Final Value decreasing or constant?
(Show Formula) (show the figures the Final Value (show the figures that
that came from (show the figures came from financial
financial reports) that came from reports)
financial reports)

Accounts receivable Show Computation Show Show Computation Is the final value increasing,
turnover and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures that
(Show Formula) that came from (show the figures came from financial
financial reports) that came from reports)
financial reports)

Average collection Show Computation Show Show Computation Is the final value increasing,
period and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures that
(Show Formula) that came from (show the figures came from financial
financial reports) that came from reports)
financial reports)

Analysis:
The student must assess here the observations, the trend in the computed financial
ratios and must also explain the possible reason for such information. [– 1 or 2 quality
sentences] Check page 142 of the book for analysis.

5.3.4. Profitability Ratios

Define and discuss the importance of Profitability Ratio. [– 1 or 2 quality sentences]

Year ( ) Year ( ) Year ( ) Observations

Gross profit margin
(Show Formula) Show Computation Show Show Computation Is the final value increasing,
and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures
that came from (show the figures that came from
financial reports) that came from financial reports)
financial reports)
Operating profit margin
(Show Formula) Show Computation Show Show Computation Is the final value increasing,
and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures
that came from (show the figures that came from
financial reports) that came from financial reports)
financial reports)

Net profit margin Show Computation Show Show Computation Is the final value increasing,
(Show Formula) and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures
that came from (show the figures that came from
financial reports) that came from financial reports)
financial reports)

Return on Total Assets Show Computation Show Show Computation Is the final value increasing,
(ROA) and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures
(Show Formula) that came from (show the figures that came from
financial reports) that came from financial reports)
financial reports)

Return on stockholders’ Show Computation Show Show Computation Is the final value increasing,
equity (ROE) and the Final Value Computation and and the Final Value decreasing or constant?
(show the figures the Final Value (show the figures
(Show Formula) that came from (show the figures that came from
financial reports) that came from financial reports)
financial reports)

Earnings per share (EPS) Show Computation Show Show Computation Is the final value increasing,
and the Final Value Computation and and the Final Value decreasing or constant?
(Show Formula) (show the figures the Final Value (show the figures
that came from (show the figures that came from
financial reports) that came from financial reports)
financial reports)

Price-earnings ratio Show Computation Show Show Computation Is the final value increasing,
and the Final Value Computation and and the Final Value decreasing or constant?
(Show Formula) (show the figures the Final Value (show the figures
that came from (show the figures that came from
financial reports) that came from financial reports)
financial reports)
Analysis:
The student must assess here the observations, the trend in the computed financial
ratios and must also explain the possible reason for such information. [– 1 or 2 quality
sentences] Check page 142 of the book for analysis.

5.3.5. Growth Ratio

Define and discuss the importance of Growth Ratio

Year ( ) and Year ( ) Year ( ) and Year ( ) Observations

Growth Ratio on Sales
(Show Formula) Show Computation and Show Computation and Is the final value increasing,
the Final Value the Final Value decreasing or constant?
(show the figures that (show the figures that
came from financial came from financial
reports) reports)

Growth Ratio on Net Income

(Show Formula) Show Computation and Show Computation and Is the final value increasing,
the Final Value the Final Value decreasing or constant?
(show the figures that (show the figures that
came from financial came from financial
reports) reports)

Growth Ratio on Earnings Show Computation and Show Computation and Is the final value increasing,
per share the Final Value the Final Value decreasing or constant?
(Show Formula) (show the figures that (show the figures that
came from financial came from financial
reports) reports)

Analysis:
The student must assess here the observations, the trend in the computed financial
ratios and must also explain the possible reason for such information. [– 1 or 2 quality
sentences] Check page 142 of the book for analysis.

5.3.6. Other Finance / Accounting Concern

After discussion of each section, relevance will follow. In this relevance, the student will
conduct resource and capability identification. Specifically the student must identify 2
strengths and 2 weaknesses under resource. Then, 1 strength and 1 weakness under
capabilities will be identified as well.

In the identification of strengths and weaknesses, the student may use the concept of
Resource-Based View (RBV) in which the presence or absence of resource and
capabilities are being evaluated as a basis for company’s assets and determining
whether they can provide the foundation necessary for competitive success in the
marketplace.

Relevance of the Finance / Accounting of the Company

Resources Identify 1 Strength and 1 Weakness that is connected to
Resources found under Finance / Accounting Component.
Check the observations and financial analysis.
potentialS1. (Resource)
potentialW1. (Resource)
Capabilities Identify 1 Strength and 1 Weakness that is connected to
Capabilities found under Finance/Accounting Component.
Check the observations and financial analysis.
potentialS2. (Capability)
potentialW2. (Capability)

Resource is a productive input or asset that is owned or controlled by the firm. Strength
here can be presence of the resource while weakness can be limitation of that resource.
Capability is the capacity of a firm to perform some activity proficiently. Strengths can be
proficiency of the skill or capacity. Weakness can be a limitation or absence, or poor
performance of that capability.

Do not propose any solution in this Chapter. All strategizing and recommendations are
on Chapter 7.

5.4. Productions / Operations

(Operations Variables under 5.4: write here the series variable titles or section titles
here that are separated by comma; Show minimum of 4 up to 6 variables here. Listing
here must be the same with all sections)

Importance, definition and principles of Productions / Operations; Emphasize how this

functional area is different from the other functions. [– 3 quality sentences] (This
paragraph is very important because this will give a guide or reference on what is to be
discussed)

After showing the Productions/ Operations Variables, the body of “5.4. Productions/
Operations” must show its detailed explanations by assessing and showing 4 sections
up to maximum of 6 sections. To assess the Productions/Operations Function in a
narrative discussion, the student maybe guided by some questions found in
“Production/ Operations Audit Checklist of Questions” in page 146 of Textbook. It is
expected that there will be supporting tables and figures. This narrative discussions (or
laying down data and information) and explanations depends on the depth of the
situation.

(Min of 5 sections, Max of 6 sections)

5.4.1. Product and Process
Five Standard sections under
5.4.2. Capacity 5.4. Productions / Operations

5.4.3. Inventory and Supply Chain

5.4.4. Workforce
5.4.5. Quality
Other sections can be added here.
5.4.6. Others
(Optional)
[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

The design of strategy especially operations strategy must be based on a realistic

evaluation of their existing operations. To describe the existing operations, the following
are the issues and decisions for each section.

5.4.1. Main Process (and/or other process operations)

(These decisions include choice of product technology and process technology (if there is), facility layout, process
flow analysis, facility location, line balancing, process control, and transportation analysis. Distances from raw
materials to production sites to customers are a major consideration. If the student finds the process to be efficient or
the most modern, then declare it as strength. This is the portion where the student can write how the product is
different; Maybe there is a special ingredient or raw materials, maybe because of the special technological process.)

Draw a flow chart to describe the core process here

5.4.2. Capacity
(These decisions include forecasting, facilities planning, aggregate planning, scheduling, capacity planning, and
queuing analysis. Capacity utilization is a major consideration. The student can also write the special machine or
equipment that has high capacity and producing quickly.)

5.4.3. Inventory and Supply Chain

(These decisions involve managing the level of raw materials, work-in-process, and finished goods, especially
considering what to order, when to order, how much to order, and materials handling.)

5.4.4. Workforce
(These decisions involve managing the skilled, unskilled, clerical, and managerial employees by caring for job design,
work measurement, job enrichment, work standards, and motivation techniques pertaining to operation management.
The students must mention safety of employees here)

5.4.5. Quality
(These decisions are aimed at ensuring that high-quality goods and services are produced by caring for quality
control, sampling, testing, quality assurance, and cost control. Sometimes, student can mention that their company
follows the Good Manufacturing practices to make this safe for human consumption.)

5.4.6. Others (purchasing, maintenance of facilities and equipment)

(These decisions are aimed at looking at the strategic issues of purchasing practice, how the equipment are
maintained)

[– 5 quality sentences maximum for each section]

After discussion of each section, RELEVANCE will follow. In the relevance, the student
will conduct resource and capability identification. Specifically the student must identify
2 strengths and 2 weaknesses under resource. Then, 1 strength and 1 weakness under
capabilities will be identified as well.

In the identification of strengths and weaknesses, the student may use the concept of
Resource-Based View (RBV) in which the presence or absence of resource and
capabilities are being evaluated as a basis for company’s assets and determining
whether they can provide the foundation necessary for competitive success in the
marketplace.

Relevance of the Productions /Operations of the Company

Resources Identify 1 Strength and 1 Weakness that is connected to
Resources found under Production/Operations Component
potentialS1. (Resource, the student can declare here if the company has the
advanced state of the art manufacturing process or has the highest capacity.)

potentialW1. (Resource)
Capabilities Identify 1 Strength and 1 Weakness that is connected to
Capabilities found under Production/Operations Component
potentialS2. (Capability, feel free to mention if the company is
capable of speedy or quick production)
potentialW2. (Capability)
Resource is a productive input or asset that is owned or controlled by the firm. Strength
here can be presence of the resource while weakness can be limitation of that resource.

Capability is the capacity of a firm to perform some activity proficiently. Strengths can be
proficiency of the skill or capacity. Weakness can be a limitation or absence, or poor
performance of that capability.

Do not propose any solution in this Chapter. All strategizing and recommendations are
on Chapter 7.

5.5. Research and Development (Student can rename this as Innovation especially for services)
(Research and Development Variables under 5.5: write here the series variable titles or
section titles here that are separated by comma; Show minimum of 2 up to 6 variables
here. Listing here must be the same with all sections)

Importance, definition and principles of Research and Development or Innovation;

Emphasize how this functional area is different from the other functions. Note that some
companies have separate Research and Development Department, others call it
Innovation Department [– 3 quality sentences] (This paragraph is very important
because this will give a guide or reference on what is to be discussed)

After showing the Key Research and Development Variable, the body of “A5. Research
and Development” must show its detailed explanations by assessing and showing 4
sections up to maximum of 6 sections. To assess the Research Function in a narrative
discussion, the student maybe guided by some questions found in “Research and
Development Audit Checklist of Questions” in page 148 of Textbook. It is expected that
there will be supporting tables and figures. This narrative discussions (or laying down
data and information) and explanations depends on the depth of the situation.

(Min of 2 sections, Max of 6 sections)

5.5.1. Developing New Products/ Services (Future Plans)
 (Write the new products of the company or the ongoing new products to be introduced, OM students must also include
discussion if the company is aware on intellectual property rights, patents, copyright, etc. Normally, big companies that they should
Two Standard sections under
always introduce something new or innovate existing product/service because this is demand of the consumers in the market. Most
5.5. Research and Development
small companies don’t innovate, hence its they weakness)

5.5.2. Improving Existing Product (or service) and its Quality

(Improving or enhancing the product must be written here; Improvement of the service and interior design can be written
here as well)

5.5.3. Other Research and Development Programs and Innovations

5.5.4.
5.5.5. Other sections can be added
here.
5.5.6.

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

After discussion of each section, Relevance will follow. In the relevance, the student will
conduct resource and capability identification. Specifically the student must identify 2
strengths and 2 weaknesses under resource. Then, 1 strength and 1 weakness under
capabilities will be identified as well.

In the identification of strengths and weaknesses, the student may use the concept of
Resource-Based View (RBV) in which the presence or absence of resource and
capabilities are being evaluated as a basis for company’s assets and determining
whether they can provide the foundation necessary for competitive success in the
marketplace.

Relevance of the Research and Development of the Company

Resources Identify 1 Strength and 1 Weakness that is connected to
Resources found under Research and Development
Component
potentialS1. (Resource)
potentialW1. (Resource)
 Capabilities Identify 1 Strength and 1 Weakness that is connected to
Capabilities found under Research and Development
Component
potentialS2. (Capability)
potentialW2. (Capability, feel free to mention that the company
lacks any attempt to innovate)

Resource is a productive input or asset that is owned or controlled by the firm. Strength
here can be presence of the resource while weakness can be limitation of that resource.

Capability is the capacity of a firm to perform some activity proficiently. Strengths can be
proficiency of the skill or capacity. Weakness can be a limitation or absence, or poor
performance of that capability.

Do not propose any solution in this Chapter. All strategizing and recommendations are
on Chapter 7.

5.6. Other Company Analysis (MIS, HR, CSR, Sustainability Programs & Others)
(Other Variables under 5.6: write here the series variable titles or section titles here that
are separated by comma; Show minimum of 4 up to 6 variables here. Listing here must
be the same with all sections)

Importance, definition and principles of Management Information System and Other

Analysis; Emphasize how this functional area is different from the other functions. [– 3
quality sentences] (This paragraph is very important because this will give a guide or
reference on what is to be discussed.)

After showing the Key MIS, HR, CSR and Other variables, the body of “5.6. Others
(MIS, HR, CSR & Other Analysis)” must show its detailed explanations by assessing
and showing 4 sections up to maximum of 6 sections. To assess the MIS Function in a
narrative discussion, the student maybe guided by some questions found in
“Management Information System Audit Checklist of Questions” in page 148 to 149 of
Textbook. It is expected that there will be supporting tables and figures. This narrative
discussions (or laying down data and information) and explanations depends on the
depth of the situation.

(Min of 4 sections, Max of 6 sections)

5.6.1. IT Infrastructure (Software and Hardware)
5.6.2. Human Resource / Talent Management
(Add HR practices of the company and policies on employment; High compensation strategy or benefits can be written
here as well. If the company has frequent trainings being provided to employees then this can be strength to the company; Diversity
culture can be document here. Issues on fair performance evaluation can be written here. Reward or award system including loyalty
program should be written here.) Four standard sections under
5.6.3. Corporate Social Responsibility and Sustainability5.6. MIS, HR, CSR and Others
Programs
5.6.4. Legal Department (or Ethics)
5.6.5. Others (like Corporate image) Other sections can be added
here.
5.6.6.

[– 5 quality sentences for each section in narrative paragraph, with relevant tables,
charts &/or figure, whenever data are available]

After discussion of each section, RELEVANCE will follow. In the relevance, the student
will conduct resource and capability identification. Specifically, the student must identify
1 strength and 1 weakness under resource. Then, 1 strength and 1 weakness under
capabilities will be identified as well.

In the identification of strengths and weaknesses, the student may use the concept of
Resource-Based View (RBV) in which the presence or absence of resource and
capabilities are being evaluated as a basis for company’s assets and determining
whether they can provide the foundation necessary for competitive success in the
marketplace.

Relevance of the Other Aspect of the Company

 Resources Identify 1 Strength and 1 Weakness that is connected to
Resources found under Other Management Component
potentialS1. (Resource)
potentialW1. (Resource)
Capabilities Identify 1 Strength and 1 Weakness that is connected to
Capabilities found under Other Management Component. Leg
Management student may mention here if the company lacks
awareness on employees rights, disabilities act, age
discrimination)
potentialS2. (Capability, a strength can be excellent labor management practices of the
company. Good relationship with the company union can be mentioned here. )
potentialW2. (Capability)

Resource is a productive input or asset that is owned or controlled by the firm. Strength
here can be presence of the resource while weakness can be limitation of that resource.

Capability is the capacity of a firm to perform some activity proficiently. Strengths can be
proficiency of the skill or capacity. Weakness can be a limitation or absence, or poor
performance of that capability.

Do not propose any solution in this Chapter. All strategizing and recommendations are
on Chapter 7.

Reminders. Sa buhay natin, minsan hindi ganun kahalaga kung

mabagal ka, importante na hindi ka tumitigil. – Zernan
(please delete this)

5.7. McKinsey 7S
(McKinsey Element: )

1st paragraph [– 3 quality sentences]

McKinsey 7s
Seven Elements Remarks and Observation
5.7.1. Strategy (Write here the plan or way that is/are developed by your company to
successfully compete in the market. In general, a sound strategy is the one
that’s clearly being implemented, is long-term, helps to achieve competitive
advantage and is reinforced by strong vision, mission and values. Those
existing strategy written in 5.4.1.Current Strategies can be repeated here) –
(use 3 quality sentences)
5.7.2. Structure Write here the way business divisions and units are organized and this
includes the information of who is accountable to whom. In other words,
structure is the organizational chart of the firm. It is also one of the most
visible and easy to change elements of the framework. Those written in
5.1.1.Org Structure can be written or rephrase here in 5.7.2.Structure – (use
3 quality sentences)
5.7.3. Systems Write here the core processes and key procedures of the company, which
reveal business’ daily main activities. Systems are the area of the firm that
determines how business is done and it should be the main focus for
managers during organizational change. Some systems and practices
written under 5.2.Marketing and 5.4.Operations can be written here as well.
– (use 3 quality sentences)
5.7.4. Skills Write here the abilities that the company’s employees perform very well.
They also include capabilities and competences. Check those skills needed
in 5.4.Operations, 5.6.1.IT Infrastructure and 5.6.2.Human Resource. The
creative marketing skills identified under 5.3.Marketing can be written here
as well. During organizational change or implementation of strategy, the
question often arises of what skills the company will really need to reinforce
its new strategy or new structure. – (use 3 quality sentences)
5.7.5. Staff Write here the element concerned with what type and estimate how many
employees an organization will need and how they will be recruited, trained,
motivated and rewarded. – (use 3 quality sentences)
5.7.6. Style Write here the way the company is managed by top-level managers, how
they interact, what actions do they take and their symbolic value. In other
words, it is the management style of company’s leaders. Write those written
in 5.1.1.Org Structure especially leadership and management style. – (use 3
quality sentences)
5.7.7. Shared Values Write here the norms and standards that guide employee behavior and
company actions and thus, are the foundation of every organization. Those
written under 5.1.2.Culture can be rewritten here. – (use 3 quality sentences)
 Relevance of the McKinsey of the Company
Resources Identify 1 Strength and 1 Weakness that is connected to
Resources found under McKinsey Component
potentialS1. (Resource)
potentialW1. (Resource)
Capabilities Identify 1 Strength and 1 Weakness that is connected to
Capabilities found under McKinsey Component
potentialS2. (Capability)
potentialW2. (Capability)

5.8. Potential Strengths and Weaknesses Identified from Functional and

McKinsey Analysis

In this part, the student must gather all the identified Strength factors and Weakness
factors that emerge from all the functional area analysis; The basis of the identified
factors must be specified (From what functional it came from. E.g. It came from
Marketing, or Operation);

Category Strength Factor

5.1. Management S1.
S2.
5.2. Marketing S1.
S2.
5.3. Finance / S1.
Accounting S2.
5.4. Productions / S1.
Operations S2.
 5.5. Research and S1.
Development S2.
5.6. Other S1.
Company Analysis S2.
(MIS, HR, CSR &
Others)
5.7. McKinsey 7S S1.
S2.

Category Weakness Factor

5.1. Management W1.
W2.
5.2. Marketing W1.
W2.
5.3. Finance / W1.
Accounting W2.
5.4. Productions / W1.
Operations W2.
5.5. Research and W1.
Development W2.
5.6. Other W1.
Company Analysis W2.
(MIS, HR, CSR &
Others)
5.7. McKinsey 7S W1.
W2.

The student may adjust the font size in order to fit or modify the table size. After laying
down all the strengths and weaknesses, the student must choose the top 5 strengths
and top 5 Weaknesses. The choice must be highlighted by underline or putting it into
box. More than 5 strengths can be chosen (let say 6 or 7), if needed and can be
handled by the student. It can be less than 5. Weaknesses can be less than 5 or more
than 5 also. Make it sure that there must be atleast two factors connected to financials,
it can be 2 strengths, 2 weaknesses or 1 strength and 1 weakness.

In choosing the top 5 strengths, the strengths must be very important in terms of
attaining goals of the company. If the strengths are exploited effectively, it helps the
company achieve strategic competitiveness.
In choosing the top 5 weaknesses, the student must think that the weaknesses to be
chosen has high negative impact in attaining goals of the company. These weaknesses
are providing the greatest hindrance or obstacles to achieve competitiveness.

5.9. Summary of Key Strengths and Weaknesses

The identification of key strengths and weaknesses must be meticulously done. In the
selection and prioritization of the Strengths factors, ensure that you have at least one
representative from competitive or financial position.

High or low ratings obtained in competitive and financial position is not a guide in the
selection process. Importance of the strength and weaknesses factors (in terms of the
big impact or relevance to the company) must be considered very well.

Check textbook pages 127 for the prioritization of the factors.

The key internal factors should help (or realize the lacking) in achieving and sustaining
the competitive advantage

List of Key Strengths and Weaknesses of the (Company Name)

The BASIS of the identified factors must be specified (From what categories it came
from. E.g. It came from Marketing, or Financial or from McKinsey)
After gathering all the Key factors, these must be classified based on the dimension of
Competitive Position and Financial Position.
 After classifying, rate each factor by assigning numerical value based on the dimension
on Competitive position or Financial position (Check the PowerPoint slides for the
lecture or textbook pages 208 to 212 for the explanation of Competitive Position and
Financial Position. The concept of Competitive Position and Financial Position will be
more useful in Strategy Formulation in Chapter 6.

Delete this table. Reminder

CAUSE-EFFECT format S1. The company is expert in creative advertising strategies,
that help them improve their branding image
CAUSE format (preferred format) S1. The company is expert in creative advertising strategies,

List of Key Strengths and Weaknesses of the (Company Name)

Basis Weight Response Dimension and

Importance Rating Degree
(From what
category; e.g.
(%)
TOP KEY 5 STRENGTHS AND EXPLANATIONS Functional,
McKinsey)
(in terms of
response of the
(Classify if under
Competitive Position
company to the or Financial Position)
strengths or
(Top strengths can be more than or less than 5) weakness) (This is degree of
Competitive positioning or
Financial Positioning)

S1. (copy paste exactly the words based on summary of Key Strengths) 3 or 4 Competitive/
Financial
1st paragraph must explain and write why this internal factor is important.
Write here the % weight importance for the company. Explain here how this
factor can help the company attain the objective/s; and/or explain the potential
impact of this factor. Then write also here the response rating (1 - 4), next is to
explain how the company is responding or using this factor. Mention also
which has the highest weight importance. [– 3 quality sentences for this
explanation]
Delete this further instruction about Response Rating

2nd paragraph must explain and write why classify this strength as under the The RESPONSE RATING is about the current responses, or dealing or
existing strategy/ies of this company to this strength or Weakness. The
“competitive positioning” or “financial positioning”. The degree of this rating must mention or explain the rate or degree of responding, dealing or
strategizing of the company towards this internal factor.
positioning must be also explained here. [– 2 quality sentences for this
explanation] The student must be observant on the response of companies, especially if
the chosen company did not clearly explain their exact strategies or
responses. The student must realize the importance of having a connection
to the company and/or interviewed the company.
S2. (copy paste exactly the words based on summary of Key Strengths) 3 or 4

1st paragraph must explain and write why this factor is important. Write here
the % weight importance of the company. Explain here how this factor can
help the company attain the objective/s. Explain the potential impact of this
factor. Then write also here the response rating (1 - 4), Explain how the
company is responding to this factor. Mention also which has the highest Delete this further instruction about
Dimension and Degree.
weight importance. [– 3 quality sentences for this explanation]
If classified as competitive position, degree will
range from -1 (best), -2, -3, -4, -5, -6, -7 (worst)

If classified as financial position, degree will range

from 1 (worst), 2, 3, 4, 5, 6, 7 (best)
2nd paragraph must explain and write why classify this strength as under the
“competitive positioning” or “financial positioning”. The degree of this
positioning must be also explained here. [– 2 quality sentences for this
explanation]

S3. (copy paste exactly the words based on summary of Key Strengths) 3 or 4

1st paragraph must explain and write why this factor is important. Write here
the % weight importance of the company. Explain here how this factor can
help the company attain the objective/s. Explain the potential impact of this
factor. Then write also here the response rating (1 - 4), Explain how the
company is responding to this factor. Mention also which has the highest
weight importance. [– 3 quality sentences for this explanation]

2nd paragraph must explain and write why classify this strength as under the
“competitive positioning” or “financial positioning”. The degree of this
positioning must be also explained here. [– 2 quality sentences for this
explanation]

S4. (copy paste exactly the words based on summary of Key Strengths) 3 or 4

1st paragraph must explain and write why this factor is important. Write here
the % weight importance of the company. Explain here how this factor can
help the company attain the objective/s. Explain the potential impact of this
factor. Then write also here the response rating (1 - 4), Explain how the
company is responding to this factor. Mention also which has the highest
weight importance. [– 3 quality sentences for this explanation]

2nd paragraph must explain and write why classify this strength as under the
“competitive positioning” or “financial positioning”. The degree of this
positioning must be also explained here. [– 2 quality sentences for this
explanation]

S5. (copy paste exactly the words based on summary of Key Strengths) 3 or 4

1st paragraph must explain and write why this factor is important. Write here
the % weight importance of the company. Explain here how this factor can
help the company attain the objective/s. Explain the potential impact of this
factor. Then write also here the response rating (1 - 4), Explain how the
company is responding to this factor. Mention also which has the highest
weight importance. [– 3 quality sentences for this explanation]

2nd paragraph must explain and write why classify this strength as under the
“competitive positioning” or “financial positioning”. The degree of this
positioning must be also explained here. [– 2 quality sentences for this
explanation]

Each factor also has weight that ranges from 0.0 (not important) to 1.0 (very important).

4 = Major strength where the response is superior,

3 = Minor strength where the response is above average,
2 = Minor weakness where response is average,
1 = Major weakness where the response is poor.
Weight Legend: range weight from 0.00 (not important) or high % (very important)

-7 (worst) to -1 (best) to Competitive Position or +1 (worst) to +7 (best) to Financial Positioning

 Basis Weight Response Dimension and
Importance Rating Degree
(From what
category; e.g.
Functional, (%) (in terms of (Classify if under
McKinsey) response of the
TOP KEY 5 WEAKNESS FACTORS AND EXPLANATIONS company to this
Competitive Position
or Financial Position)
(Weaknesses can be more or less than 5.) wekness)
(This rating is based on
degree of Competitive
positioning or Financial
Positioning)

W1. (copy paste exactly based on summary of Key Weaknesses) 1 or 2 Competitive

or Financial
1st paragraph must explain and write why this Weakness factor is important. Position
Write here the % weight importance of this. Explain here how this internal
factor can affect the company as hindrance. Or explain the potential impact of ALL FONTS INSIDE THIS EFE TABLE must be (-7 to -1) or
small in order to fit this in one page:
this factor to the profit or revenue generation, or in terms of getting customers. FONT TYPE: ARIAL (+1 to +7)
FONT SIZE: 10
Then write also here the response rating (1 - 4), and then explain how the SPACING: 1.0
company is responding in terms of solving the problems due to this weakness. BOARDER, SHADING, HEIGHT AND WIDTH OF
THIS TABLE SHOULD BE SMALL AND CANNOT Example
Mention also if this has the highest weight importance. [– 3 quality sentences BE ADJUSTED
(Delete this)
for this explanation] Competitive
(-2)
2nd paragraph must explain and write why classify this weakness as under Or
the “competitive positioning” or “financial positioning”. The degree of stability Financial
positioning or industry positioning must be also explained here. [– 2 quality (+4)
sentences for this explanation]
Delete this further instruction about Response Rating

The Response rating is about the current responses, or dealing or existing

W2. (copy paste exactly based on summary of Key Weaknesses) 1 or 2
strategy/ies of this company to this strength or weakness. The rating must Competitive
or Financial
mention or explain the rate or degree of responding, dealing or strategizing
of the company towards this external factor.
1st paragraph must explain and write why this Weakness factor is important. Position
The student must be observant on the response of companies, especially if
Write here the % weight importance of this. Explain here how this internal the chosen company did not clearly explain their exact strategies or
factor can affect the company as hindrance. Or explain the potential impact of The student must realize the importance of having a connection
responses. (-7 to -1) or
to the company and/or interviewed the company.
this factor to the profit or revenue generation, or in terms of getting customers. (+1 to 7)
Then write also here the response rating (1 - 4), and then explain how the
Delete this further instruction about
company is responding in terms of solving the problems due to this weakness. Dimension and Degree.
Mention also if this has the highest weight importance. [– 3 quality sentences
If classified as competitive position, degree will
for this explanation] range from -1 (best), -2, -3, -4, -5, -6, -7 (worst)

If classified as financial position, degree will range

2nd paragraph must explain and write why classify this weakness as under from 1 (worst), 2, 3, 4, 5, 6, 7 (best)
the “competitive positioning” or “financial positioning”. The degree of stability
positioning or industry positioning must be also explained here. [– 2 quality
sentences for this explanation]

W3. (copy paste exactly based on summary of Key Weaknesses) 1 or 2 Competitive

or Financial
1st paragraph must explain and write why this Weakness factor is important. Position
Write here the % weight importance of this. Explain here how this internal
factor can affect the company as hindrance. Or explain the potential impact of (-7 to -1) or
this factor to the profit or revenue generation, or in terms of getting customers. (+1 to 7)
Then write also here the response rating (1 - 4), and then explain how the
company is responding in terms of solving the problems due to this weakness.
Mention also if this has the highest weight importance. [– 3 quality sentences
for this explanation]

2nd paragraph must explain and write why classify this weakness as under
the “competitive positioning” or “financial positioning”. The degree of stability
positioning or industry positioning must be also explained here. [– 2 quality
sentences for this explanation]

W4. (copy paste exactly based on summary of Key Weaknesses) 1 or 2

1st paragraph must explain and write why this Weakness factor is important.
Write here the % weight importance of this. Explain here how this internal
factor can affect the company as hindrance. Or explain the potential impact of
this factor to the profit or revenue generation, or in terms of getting customers.
Then write also here the response rating (1 - 4), and then explain how the
company is responding in terms of solving the problems due to this weakness.
Mention also if this has the highest weight importance. [– 3 quality sentences
for this explanation]

2nd paragraph must explain and write why classify this weakness as under
the “competitive positioning” or “financial positioning”. The degree of stability
positioning or industry positioning must be also explained here. [– 2 quality
sentences for this explanation]

W5. (copy paste exactly based on summary of Key Weaknesses) 1 or 2

1st paragraph must explain and write why this Weakness factor is important.
Write here the % weight importance of this. Explain here how this internal
factor can affect the company as hindrance. Or explain the potential impact of
this factor to the profit or revenue generation, or in terms of getting customers.
Then write also here the response rating (1 - 4), and then explain how the
company is responding in terms of solving the problems due to this weakness.
Mention also if this has the highest weight importance. [– 3 quality sentences
for this explanation]

2nd paragraph must explain and write why classify this weakness as under
the “competitive positioning” or “financial positioning”. The degree of stability
positioning or industry positioning must be also explained here. [– 2 quality
sentences for this explanation]

Each factor also has weight that ranges from 0.0 (not important) to 1.0 (very important).

4 = Major strength where the response is superior,

3 = Minor strength where the response is above average,
2 = Minor weakness where response is average,
1 = Major weakness where the response is poor.
Weight Legend: range weight from 0.00 (not important) or high % (very important)

-7 (worst) to -1 (best) to Competitive Position or +1 (worst) to +7 (best) to Financial Positioning

Each factor must be complete sentence.

Note: Ensure that each of these strengths and weaknesses factor must be traceable or
has basis. It’s impossible that a strength factor or weaknesses factor suddenly
appeared in the list without assimilating information in the functional areas or McKinsey.
These lists are reduced to a manageable factors in order to make it useful and derive
effective strategy. The student may reflect several times on this final lists to ensure that
the Strength and Weaknesses are really the final factors. Use the concept of Resource-
Based View to check if the internal factors have the resources, capabilities and core
competencies that can be foundation in the competitive advantage of the company.

*All tables and figures in the entire chapter 5 must be mentioned and explained in
paragraph discussions

Ex. Table 5.2 shows the . . . .

Figure below explains the . . .

**It is possible that 2 or more strengths (or weaknesses) can be identified from the
same functional area or in one S if under McKinsey.

(Definition and principles of Internal Factor Evaluation must be explained here. How IFE
is being constructed should be also mentioned here. For review of creating IFE Matrix
check pages 152 to 153 of textbook.) [– 3 quality sentences]

IFE Matrix
The student or strategist should create their own IFE Matrix based on Key Strength
Factors and Weakness Factors finalized at the end of Chapter 5. The Strength Factors
and Weakness Factors must follow the CAUSE format, not CAUSE AND EFFECT
format.

Delete this table. Reminder

CAUSE-EFFECT format S1. The company is expert in creative advertising strategy,
that help them improve branding image
CAUSE format (preferred format) S1. The company is expert in creative advertising strategy,
5.10. Internal Factor Evaluation (IFE)

Delete this reminder:

Table 4._ : IFE Matrix of (Company) Dito sa IFE, mahahalat
kopya ang strama. Kail
Key Internal Factors Weight Rating Weighted student kung ano pinka
Importance (based on
response of the Score STRENGTH or WEAKN
(%) company)

STRENGTHS
S1. (Each Strength here must be in complete sentence, copy paste 3 or 4
DELETE THIS INSTRUCTION.

exactly based on summary of Key Strengths and Weaknesses in Chapter 5) ALL FONTS INSIDE THIS IFE TABLE must be sma
in order to fit this in one page:
FONT TYPE: ARIAL
S2. 3 or 4 FONT SIZE: 10
SPACING: 1.0
BOARDER, SHADING, HEIGHT AND WIDTH OF
S3. 3 or 4 THIS TABLE SHOULD BE SMALL AND CANNOT
BE ADJUSTED
(Delete this)
S4. 3 or 4
S5. 3 or 4

WEAKNESSES
W1. (Each Weakness here must be in complete sentence, copy paste 1 or 2
exactly based on summary of Key Strengths and Weaknesses in Chapter 5)

W2. 1 or 2
W3. 1 or 2
W4. 1 or 2
W5. 1 or 2

TOTAL: 1.0
(wts of strengths
and weaknesses
overall must be
1.00)

Rating Legend: 4 = major strength, 3 = minor strength, 2 = minor weakness, 1 = major weakness.
Weight Legend: range weight from 0.00 (not important) to 1.0 (very important)
DELETE THIS REMINDER.

Student must double check the content of CPM matrix of Chapter 4:

External Analysis. Key strengths and weaknesses must be aligned or
the same here in IFE Matrix.

Interpretation of IFE: [– 3 quality sentences for Interpretation of IFE]

After writing and constructing IFE Matrix Interpretation will follow. In the analysis, the
student must write the interpretation of the IFE total score; This is where the validity and
accuracy of the research of the strama student in the internal analysis and the company
analysis are all integrated. The analysis here must discuss or mention that the company
passed or failed from the 2.5 score average midpoint. Student should also analyze and
give overall interpretations of this total score based on this score interpretations of the
ratings. The interpretation must also explain the extent or degree of the total weighted
score from the 2.5 average midpoint or extent of the score if below 2.5 must be discuss
here; Is the IFE score near to 4.0 or close to 4.0? Insights must be added or mentioned
here in the extent interpretation. The insights can be explanations (major responses to
key external factors) why the company attained that score. The insights can be from a
friend, relative or connection in the chosen company. [– 3 quality sentences for
Interpretation of IFE]