The internal assessment (strengths and

weaknesses)
Management
Planning: preparing for the future, forecasting,
establishing objectives, devising strategies,
developing policies and procedures
Organizing: Structure of task and authority
relationship, job description, span of control etc.
Motivating: Efforts directed toward shaping human
behavior. Leadership, communication, work groups,
organizational change, delegation of authority etc.
Staffing: human resource management
Controlling: all activities to ensure actual results
conforming to expected. All control measures

Management audit checklist

Does the firm use strategic management concept?
Are company objectives and goals measurable and well
communicated?
Do managers at all levels plan effectively?
Do managers delegate authority well?
Is the organizations structure appropriate?
Are job descriptions and job specification clear?
Is employee morale high?
Are employee turnover and absenteeism low?
Are organizations reward and control mechanism effective?

Marketing
Customer analysis: is the firm well positioned when compared with
competitors?
Selling products and services Advertising, Personal selling, sales
promotion, sales management
Product and service planning: test marketing, product and brand
positioning, product decisions
Pricing; depends on consumers, government, suppliers, distributors, and
competitors.
Marketing research
Distribution: ware housing, Channels, Distribution coverage, Inventory
levels, sales territories etc.
Checklist
Are markets segmented effectively?
Is the firm well positioned with respect to competitors?
Has the firms market share been increasing?
Are present channels of distribution reliable and cost effective?
Does the firm have an effective sales organization?
Does the firm conduct market research?
Does the firm have an effective sales promotion and advertising

Finance / accounting functions: Liquidity, leverage, Working

capital, profitability, asset utilization, cash flow , equity
Financial ratio analysis
Investment decisions
Dividend decisions
Finance checklist
Where is the firm financially strong and weak?
Can the firm raise the needed short term capital?
Can the firm raise the needed long term capital through debt or
equity/
Does the firm have sufficient working capital?
Are capital budgeting procedures effective/
Are dividend payout policies reasonable/
Does the firm have good relations with investors and shareholders/
Are the firms financial managers well experienced AND TRAINED/

PRODUCTION? OPERATIONS
Process
Capacity
Inventory
Workforce
Quality
Checklist
Are suppliers of raw materials etc, reliable and reasonable?
Are facilities equipment, machinery and offices in good condition?
Are quality control procedures effective?
Are facilities, markets, and resources well located?
Does the firm have technological competency?
Are inventory control procedures effective?

Internal factor evaluation matrix (IFEM)

List key internal factors, including strengths and weaknesses
Assign weights ranging from 0 to 1
Assign rating from 1 to 4 depending on whether that factor is a
strength or weakness
Multiply each factors weight by its rating to determine a weighted
score for each variable
Sum the weighted score for each variable to determine the total
weighted score for the firm
Internal strength

Internal weakness

weight

rating

weighted score