Company Name:
Internal Company Analysis
Choose a competitor in the industry you analyzed in the previous External Analysis assignment. Conduct an
internal analysis of the company using the analysis tools included here. Please submit your analysis in a single
document, although it does not have to be this particular Word document. It may be helpful to do the
financial analysis in a spreadsheet, and then copy your results into a Word document.
1. Value Chain Analysis
Consider each category of Value Chain activities below. In each category, list activities the company performs
in ways that help contribute to the company’s competitive advantage. For each activity you list, note how the
company performs it in a way that contributes to increased profitability (i.e. note whether it contributes
to lower costs or to increased value for the customer). If your company is not performing well, you should
note the activities in which it is underperforming.
Supply Chain Management
Operations
Distribution
Marketing & Sales
Service
Procurement
R&D/Technology
General Management / Firm Infrastructure
2. Financial Analysis:
Using company financial statements, calculate the following financial ratios. For each ratio, show what
the trend has been over at least a 5 year period and compare to industry or competitor figures, where
possible. Be sure to state whether the company is performing well or poorly on each metric.
Use formulas to calculate the ratios, even if the ratios are available for download from a database such as
Bloomberg. The main point of this assignment is to make sure you understand where these ratios come from,
how to calculate them, and what they mean. Chapter 4 of the textbook contains a chart of financial ratios.
Operating Profit Margin
Net Profit Margin
Return on Assets
Current Ratio
Debt-Asset Ratio
Debt-Equity Ratio
Days of Inventory
Inventory Turnover
COGS/Sales
SG&A/Sales
At least one other ratio of your choice – state why it is important to consider this ratio
List and explain 4 of this company’s Financial STRENGTHS
List and explain 4 of this company’s Financial WEAKNESSES
3. Competitive Strength Assessment
Using the Key Success Factors you identified in the Industry Analysis, complete a Competitive Strength
Assessment for the company you are analyzing and its two main competitors.
Industry Key Success Factors
(list here)
Weight
Your Company’s
Name
Wtd.
Rating
Score
Competitor 1
Name
Wtd.
Rating
Score
Competitor 2
Name
Wtd.
Rating
Score
TOTAL
Justification for your weightings and ratings, and conclusions from your completed Competitive Strength
Assessment:
4. Internal Company Strengths and Weaknesses
Using your results from these analyses, list your company’s internal Strengths and Weaknesses, including
key financial strengths and weaknesses.
Strengths
Weaknesses
(Resources and Capabilities, Competencies)
(Strategic Vulnerabilities, Resource Deficiencies)
5. TOWS Matrix: Using the results of your previous analyses, construct a TOWS matrix. Remember, the
internal boxes of a TOWS matrix contain actions the company might take to improve its competitive
position.
TOWS Matrix
Strengths
Weaknesses
Opportunities





The world is running out of
oil. Electricity is a renewable
energy.
Can use their battery
technology in other areas,
such as storing power from
solar panels.
Expend addressable market.
Global warming will raise
customer awareness around
environmental friendly
automobile products.
High costs for natural
resources like oil may drive
customer demand for
electronic automobiles.
Threats






Very Strong competition
with less operating Costs
Economic slowdown
Limited supply for raw
materials Limited
Experienced resource pool
Hybrid vehicles
Expansion to China





Focus on new product
development with new
technologies and be ahead of
the market.
Expand in new markets.
Develop new products in an
industry different than the
company's core operation.

Develop new products
attracting the different
segments
Develop new technologies to
decrease overall operating
costs



Outsourcing some operational
activities to a low cost.
Promote the awareness of
environmental friendly cars.
Follow Cost reduction strategy to
decrease costs
Sell the company with a good
bargain