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PLEASE SOON AS POSSIBLE . USE YOUR OWN WAY OF WRITING BECAUSE PLAGIARISM WILL BE SHOWN . Quizin Finish Time Question 4. CLO 4 (10

PLEASE SOON AS POSSIBLE . USE YOUR OWN WAY OF WRITING BECAUSE PLAGIARISM WILL BE SHOWN . image text in transcribed
Quizin Finish Time Question 4. CLO 4 (10 marks) Internal factor evaluation matrix (FE) is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. Using your analytical skills, evaluate the internal key factors affecting an IT company (XYZ) operating in the UAE (all the steps should be explained) (6pts). Ensure your analysis is based on logical arguments and supported by the financial ratio analysis (discuss at least 3 examples) (4pts) (minimum 250 words). Internal factor evaluation matrix: Key Internal factors Weight Rating Weighted Score Strengths 1. Innovative solutions 0.1 4 0.4 2. Good leadership position for the last 10 years 0.1 3 0.3 3 The percentage of total funds provided by the creditors declined 0.09 3 0.27 by 20% 4. Sales were growing 10% in quarter 1 2020 compared to Q1 2021 0.09 4 0.36 5. Efficiency in cost optimization 0.08 3 0.24 6. International standards 0.08 3 0.24 7. Solid values and company culture 0.07 4 0.28 Weaknesses 1. Intellectual problems issues 0.09 2 0.18 2. Maintenance costs 0.09 1 0.09 3. High research and development cost 0.08 1 0.08 4 The company current ratio is only 0.52. 0.07 2 0.14 5. Provisioning of systems and applications is slow sometimes 0.06 1 0.06 Total 1 2.64 NH Financial ratio analysis: XYZ Competitor 1 Current Ratio Long Term Debt/Equity Inventory Tumover Net Profit Margin Return on Total Assets (ROA) 0.52 0.48 15,6 0.17 18% 0.87 0.54 8.09 0.23 20%

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