Business Functions: Internal Analysis ReportWeek 9, Teamwork by Joan, Belle, Cathy, Cici, Andrew, Team 2, Group D, DME 1Internal Analysis ReportIntroductionInternal analysis is important for new product development. In this report, we would explain our core resources, capabilities and confidences. Resources and capabilitiesIn analyzing the resources of organizations, Lynch (1997) indicated that architecture, reputation and innovation ability are core resources. Whats more, organizations also should have the capability to take those resources and use them effectively. Accordingly, we plan to establish long-term relationships with some universities to achieve R&D support for product improving and innovation. Furthermore, we would pay more attention to maintain a favorable communication with our customers by conveying a quality service that is punctual and reliable. Brand and bottle designkotler (2003) points out that a brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods of sellers and to differentiate them from competitors. Applying to our business, our logo is the initials of our brand name Cocoa Attractive. Considering our special ingredient of our perfume, we intent to choose an image of a cocoa plant as our label. In terms of our bottle design, we plan to use semi-clear glass bottles with chocolate-color. In addition, we select a shape of the traditional chocolate bar as our products packaging. Advertising planningMany specific communication and sales objectives can be assigned to advertising (kotler, 2003). In developing an advertising program, we have made four major decisions: 1. Mission, establish a potential market for chocolate flavor perfume.2. Money, maximum 350,000 per year.3. Message: pure and fresh 4. Media: TV., outdoor, and fashion magazinesBudgetIn reality, budget is very important to do business successfully. Just as Kotler (2003) mentioned, Business Functions: Internal Analysis ReportWeek 9, Teamwork by Joan, Belle, Cathy, Cici, Andrew, Team 2, Group D, DME 2senior management must decide how much to budget for new product development. Consequently, our budget would focus on limiting the costs of R&D, manufacturing, introductory, and increasing the productivity at the same time. We intend to invest 2 million to start-up our new product, and the fund would be mainly used in R&D, raw material stock, market promotion and staff payment. Accordingly, we have formulated the acceptance criteria (See figure 1).At the same time, we have arranged a business financial budget by summarizing the projects and addressing key figures including those for sales, expenses, net income, and total growth in assets and net worth (See figure 2 and figure 3).Core competencesLynch (1997) defined core competences as a group of production skills and technologies that enable an organization to provide a particular benefit to customers, which is superior to their competitors. Consequently, we take our special flavor product and learning organizational culture as our two core competences. -Special flavorAs mentioned before, chocolate flavor perfume is unique and fashionable in current perfume market, and the main ingredient cocoa doesnt like other perfumes ingredients that do harm for skin in the case of overuse. -Learning organizationAccording to Lynch (1997), achievement of organization mission and objectives would be influenced by the organizational culture. In order to create a learning organizational culture, we would request our university partners to engage R&D continually. On the other hand, to learn our focused customers culture is another component of our culture. Furthermore, we would provide opportunities of internal job turnover so as to develop staffs comprehensive skills.ConclusionTo conclude, our internal environment would be our superiority over competitors, and our new product would contain wonderful possibilities. Reference:Lynch R (1997) Corporate Strategy, Pitman Publishing.Business Functions: Internal Analysis ReportWeek 9, Teamwork by Joan, Belle, Cathy, Cici, Andrew, Team 2, Group D, DME 3Kotler, P. (2003), Marketing Management, 11th Edition. Prentice Hall.Business Functions: Internal Analysis ReportWeek 9, Teamwork by Joan, Belle, Cathy, Cici, Andrew, Team 2, Group D, DME 4Figure 1. The budgetary criteria of our new product development. (All figures 000s)R&D Raw material stock and machinery Market promotion Staff payment700 550 550 200Figure 2. The business financial budget of our new product.Sales (000s)Expenses (000s)Net income (000s)Total growth in assets*Net worth (000s)1st month 250 170 80 4.00% 2,0802nd month* 500 360 140 6.25% 2,2203rd month 280 180 100 5.00% 2,3204th month 310 195 115 5.50% 2,4355th month 290 185 105 5.50% 2,5406th month* 450 315 135 6.50% 2,675Total 2080 1405 675 32.75% 2,675*Assets here is considered as total start-up investment*Christmas sales.*Easter sales Figure 3. The