Internal Audits – Internal Strengths And Weaknesses

Accountancy Resources

Internal Audits – Internal Strengths And Weaknesses

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The internal strengths and weaknesses are the controllable factors which normally come from functional units of organizations such as marketing, human resource, management, finance, research and development and information systems.

Determining and evaluating the internal strengths and weaknesses within organization functional areas is a vital part of strategic management process. The Internal evaluation matrix is primarily used to identify and evaluate the internal strengths and weaknesses.

It is important for an organization to increase their strengths and overcome their weaknesses to become strong contender in the industry. Organizations opt for the strategies to capitalize on their strengths and improve their internal weaknesses.

An organization must set benchmark to identify and evaluate its strengths and weaknesses. The benchmark could be the top competitors or overall industry performance. The internal weaknesses for an organization are low revenues and profits, poor product quality, low customer satisfaction, incompetent workforce, high prices and other internal factors which require improvement. The internal strengths for an organization are strong cash flows, high marketing share, high profits and revenues, excellent product and services, best utilization of resource and other internal factors which strengthen and benefit the organizations.