3rd Element: the internal situation
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.
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Quotes
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Before
I step into a puddle, I'd like to know how deep it is
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You can't
manage what you can't measure. Peter Drucker
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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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