3rd Element: the internal situation

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The internal situation regards the status quo of the firm, its starting conditions. The present economic and financial condition represent one of the principal factor of the internal situation. A lot has been written and there are many references. Numerous indexes and instruments are used, for example, the added value, the gross margin, the operating profit, the net sales, the financial standing and many others. The economic and financial analysis is a inalienable pillar of the management of a firm and it is a fundamental input for the development of any kind of strategy. Besides the internal situation is characterised by the internal organization structure, the product/processes and the used technology. The last aspect of the internal situation regards the evaluation of how the company is positioned respect to future development: if and how much the firm is learning and how it is positioned, in its and other similar industries, for the technology adopted.

  • Before I step into a puddle, I'd like to know how deep it is 
  • You can't manage what you can't measure. Peter Drucker
  • Look for what is missing. Many know how to improve what's there; few can see what isn't there.  Bill Swanson

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