Functional Areas Categories of strength

Internal Analysis Template
Instruction: Each team member should present an internal analysis template, summary paragraph, and references for his/her own company.

Functional Areas Categories of strengths Descriptions Rare?
Compared this firm’s performance to other firms in the same industry. Difficult to imitate?
Evaluate based on the sub-tests

Overall Management clear statement of visions, value, objectives, and strategies Use glassdoor.com for
€¢ employee satisfaction rating and
€¢ CEO rating

Use the Ranking in Business Insight Essentials database for CRS and employee satisfaction ranking.
Constructive culture
Employee morale
Employee training and benefits
Leadership
Financial Management Cash flow Free cash flow = cash flow from operations €“ capital expenditure

Liquid Current ratio = current assets / current liabilities

Leverage Debt-to-equity ratio = total debt/ total stockholders’ equity

Attractiveness EPS
ROE
Operation Management Inventory efficiency Inventory Turnover Ratio = Sales/Inventory

Bargaining power over suppliers CGS-to-Sales Ratio = CGS/Sales

Inventory and logistic management technologies
R&D R&D input R&D intensity (R&D expense divided by revenue)

R&D output Number of patents, new products
Innovative focus, organizational structure, and culture
Marketing Advertising investment Advertising intensity (Marketing expense divided by revenue)

Brand recognition / reputation
Product / Service Financial indications

Consumer Rankings Revenue
Market share

Summary paragraph:
What are your company’s core competencies?
References:
List your sources of information here.
An Example €“ Internal Analysis for Corning (GLW). Note, this is incomplete. But just to give you a sense of the general format.

Functional Areas Categories of strengths Descriptions Rare? Difficult to imitate?

Overall Management clear statement of visions, value, objectives, and strategies
The strength of our values [1] No
Constructive culture
Employee morale
Employee training and benefits
Leadership The strength of our leadership team [1]
Yes Yes. H €“ it takes time to build up a leadership team.
Financial Management Cash flow Free cash flow = cash flow from operations €“ capital expenditure
0.636B (2009), 0.306B (2008) [3]. Finding: getting stronger No
Liquid Current ratio = current assets / current liabilities
1.85 (2009), 1.60 (2008) [3]. Finding: getting better No
Leverage Debt-to-equity ratio = total debt/ total stockholders’ equity
0.23 (2009), 0.33 (2008) [3]. Finding: good condition. No
Attractiveness EPS (basic)
1.30 (2009), 3.37 (2008), 1.37 (2007) [3]

ROE
38.19% (2009), 45.96% (2008) [3]. Finding: good but declined. No
References:
[1] Letter to investors from Corning’s CEO. 2008
[2] Factiva €“ Datamonitor SWOT report.
[3] Corning’s 10K filed on Feb 10, 2001
[4] Yahoo Finance €“ Key Statistics