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Review the firm’s financial ratios, its profit margins and rates of return, and its capital structure, and decide how strong the firm is financially. Similarly, look at marketing, production, managerial competence, performance compared to competition, and other factors underlying the organization’s strategic successes and failures. Decide whether the firm has valuable resource strengths and competencies and, if so, whether it is capitalizing on them. Check to see if the firm’s strategy is producing satisfactory results and determine the reasons why or why not. Decide whether and why the firm’s competitive position is getting stronger or weaker.

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