Assignment 2 Sherook A.

Ghaly

The Internal Audit Assignment A00442412

Internal Audit: ELSEWEDY ELECTRIC

The firm uses some strategic management concepts, some of the time. The
company’s objectives and goals are measurable but not well communicated.
The organization’s structure is appropriate when it comes to the smaller
departments. The bigger structure of the 5 sectors or the corporate is
appropriate with some overlaps. Some functions could be centralized instead
they exist duplicated.
The organizational reward and control mechanisms are effective but not
satisfying. The employee turnover and absenteeism are somewhat low. Many
employees work since over 20 years in the company. Some remained in the
same positions that long, too.
As the managers from the different hierarchical levels plan effectively and
delegate missions to younger employees, granting them the power and
authority to learn and grow within the dynamic businesses of the different
companies. Other supervisors do less effort in motivating their teams which
reflects in the work environment of the department or unit.
The employee morale is high even though the job descriptions and job
specifications are not always clear or clearly explained at the beginning.
The different support functions of the company like the marketing, finance, HR
and IT support the different operations of the plants.
The marketing of Elsewedy Electric is separated between the MarCom
(Communications) and the offline prescription marketing on ground
communicating with the different governmental bodies in order to get
approvals on the products and services Elsewedy Electric provides.
The firm’s market share has been increasing rapidly in the past 2 decades.
The commercial sales force is segmented effectively by markets in all the
world’s regions.
The organization is well positioned among competitors, regarded as the
market leader in Egypt and the region. The firm’s Internet presence excels
compared to rivals.
Assignment 2 Sherook A. Ghaly

The Internal Audit Assignment A00442412

The present channels of distribution are neither reliable and nor cost effective
even though the firm has an effective sales organization which conducts on
ground-market and desk researches.
The firm’s products’ and services’ quality are high and the customer service
can be considered to be good but not appropriately priced.
The firm does not have an effective promotion, advertising and publicity
strategy.
The marketing, planning and budgeting are not as effective as the firm needs
those functions to be. The marketing managers have adequate experience and
training yet lack the experience in such fields as the energy solutions and
products.
The operations of the products differ from each other. The manufacturing
process, cost and revenues of the cables, accessories, wires are separate from
the transformers or the electrical or water meters.
Regarded as different business lines, units, departments and structure them
having some mutual supplies of raw materials, parts and subassemblies or
spare parts make the different vendors of the different materials reliable and
reasonable.
The headquarter facility, equipment, machinery and offices are in a very good
condition compared to the conditions of the factories and smaller facilities.
The inventory control policies and procedures are very effective whether in the
plants shop floors or the offices with strong presence of the assets
management.
The quality-control policies and procedures are strongly effective.
The facilities, resources and markets are strategically located in the middle
east, north, east and west Africa as well as south Europe.
The firm does have above average technological competencies, owning a
complete sector for Technologies, which offers the rest of the corporate and
outside costumers software systems and solutions.
Assignment 2 Sherook A. Ghaly

The Internal Audit Assignment A00442412

Strengths

1. Corporate structure is clear and announced.

2. The global expansion leads various vacancies to be available and open in different locations.
3. Strong employer name even though the HR function; the employer branding is nonexistent and
has no actions taken regard it whatsoever.
4. Various business lines act as alternatives in case a business sector is suffering. (Real estate, F&B,
Sports, Fashion, Retail, Insurance etc. …)
5. Feeding industries offer lower prices or special discounted rates for raw materials like Plastics.
6. The involvement with the different governmental sectors creates more business opportunities
7. Ability to position the firm as the market leader and benchmark the quality and prices of the
products to the other players in the market.
8. Luxury of having a high number of very loyal white & blue-collar employees.
9. Laboratories in house in each shop floor save time and reduce cost for the various test
certificates fastens the process.
10. High production capacity of trendy products like the fiber optics, Solar cables and Aluminum
conductors.

Weaknesses

1. Lacking centralized functions across 1 sector or all 5 sectors.

2. Low turnover with a lot of older employees leaves no chance for younger calibers to elevate in
their positions which makes them feel as their skills are not utilized.
3. Lack of Communication when it comes to delivering important decisions to all the levels below
the firm’s owners and chief level directors. Islands-like strategy leaves different environments in
the different business units.
4. Competitive work environment, however the salaries scale or the employees’ benefits and
compensations are not as competitive as the rest of the firms in the Egyptian market. The
Recognition to hardworking employees is almost nonexistent.
5. Functions like the marketing & CRM could act more effectively on ground as much as their
virtual presence.
6. Lower profitability and higher processing cost of some products due to high manufacturing and
processing cost.
7. High competitiveness in the regional market due to lower prices of the outsourced products
from countries like India, Turkey or China where the labor and processing cost are less.
8. Feeding industries like the Metals under the same umbrella of Elsewedy Electric are also profit
oriented leaving the main industries as the Cables, wires, accessories, meters, transformers,
suffer from uncompetitive pricing.
9. Low understanding of the HSE culture by the blue-collar operators in some plants.
10. Counterfeited products considered as the biggest competitor.
Assignment 2 Sherook A. Ghaly

The Internal Audit Assignment A00442412

Step 5: EFE -Internal Factor Evaluation matrix for Elsewedy Electric-

Key External Factors Weight Rating Weighted

score
Strengths 51%
1. A clear organizational structure is announced to the 0,10 2 0,20
public.
2. Vacant opportunities in various locations. 0,01 2 0,02
3. Employer branding (Work with or at Elsewedy Electric) 0,02 1 0,02
4. Different businesses as alternatives to core business. 0,04 3 0,12
5. Feeding industries offer lower prices or special 0,05 4 0,20
discounted rates for raw materials.
6. More business opportunities thanks to the involvement 0,03 4 0,12
with the governmental sector.
7. Market leader to products’ quality & pricing. 0,13 3 0,39
8. A high number of loyal employees. 0,02 2 0,04
9. Laboratories in house in each shop floor fastens the 0,07 2 0,14
process of tests & products’ certificates.
10. High production capacity of trendy products like the fiber 0,04 3 0,12
optics, Solar cables and Aluminum conductors.
Weaknesses 49%
1. Lacking centralized functions & duplicated functions. 0,10 2 0,20
2. Low turnover rates. 0,02 2 0,04
3. Lack of Communication to important decisions to all the 0,05 1 0,05
levels below the firm’s owners and chief level directors.
4. Competitive work environment, however the recognition 0,01 1 0,01
of hardworking employees is almost nonexistent.
5. Functions like the marketing could act more effectively on 0,01 2 0,02
ground as much as their virtual presence.
6. Lower profitability and higher processing cost of some 0,08 1 0,08
products due to high manufacturing and processing cost.
7. High competitiveness with the outsourced products from 0,12 2 0,24
countries where the labor and processing cost are less.
8. Core industries suffer from uncompetitive pricing of the 0,02 4 0,08
feeding industries.
9. Low understanding of the HSE culture by the blue-collar 0,02 3 0,06
operators in some plants.
10. Counterfeited products considered as the biggest 0,06 1 0,06
competitor.

Total 1.00 1.89