STRATEGY MANAGEMENT
METHOD AND TECHNIQUE OF
“ORGANISATIONAL APPRASIAL”
BY:-
DURGESH KUMAR
SEC--A
3RD SEM.
CONTENTS
1.Concepts of organisational
appraisal
2 method and technique
3.conclusion
Organisational
appraisal
The purpose of organisational appraisal is to
determine the organisational capacity in
terms of strengths and weakness that lie in
the different functional areas. In
organisational appraisal ,the various forces
and influence s operating within the
internal environment of an organization
have to be analyzed.
METHOD AND
TECHNIQUE
1.INTERNAL ANALYSIS
2.COMPRATIVE ANALYSIS
3.COMPREHENSIVE ANALYSIS
INTERNAL ANALYSIS
1.VRIO framework
2.Value chain analysis
3.Qunatitative analysis
4.Qualitative analysis
VRIO FRAMEWORK
V…….. Valuable
R………. Rare
I………..inimitable
O………..organized for use
valuable
Help to generate revenue by
capitalaising on opportunity or to
reduce costs by neutralising
threats.
RARE
The organisational capabilities that
are possessed by the firm.
INIMITABLE
The organisational capabilities
possessed by the firm that are
impossible ,very difficult.
Organized for used
The organisational capabilities
possessed by the firm that could
be used through appropriate
organisational structure ,business
processes, control systems.
2.Value chain analysis
In 1985 Porter had given value chain
analysis.thes is a method for assessing
the strengths and weaknesses of an
orgnisation based on an
understanding of the series of
activities it performs. porter divided
the value chain of a manufacturing
orgnisation into primary and support
activities.
Sub-activities
1.Inbound logistics
2.Operations
3.Outbound logistics
4.Marketing and sales
5.service
Primary activities
1.Firm infrastructure
2.Human resource management
3.Technology development
4.procurement
3.QUAnTITATIVE ANALYSIS
1.Fnancial analysis and
2.non- financial quantitative anaysis
Financial analysis
The traditional methods used for evaluating
financial performance, cover various types of
activities in different functional areas within an
organization.
A technique such as the financial ratio analysis
assesses the liquidity, profitability, leverage
and activity aspects of any organisation.it can
be used for analysing strengths and
weaknesses and provides a valuable data that
can be used in organisational appraisal.
NON FINACIAL ANALYSIS
The obvious advantage of financial
analysis is that all numbers can be
expressed in terms of a common
monetary unit such as rupees,
pounds or dollars. But not
everything that goes on in
organisation can be best
expressed on monetary units.
4.QUALITATIVE ANALYSIS
An organisational appraisal can be based
primarily on quantitative analysis since it
is possible to measure and compare on a
numerical or financial basis. yet, as most
strategists are aware, quantification has
limitations. the quantitative analysis has to
be tempered with a a qualitative analysis.
such as analysis is based on informed
opinion, judgment, intuition or hunch
COMPARATIVE ANALYSIS
Comparative analysis has done
through
1.History analysis
2.Industry norms
3.benchmarking
History analysis
One way to compare performance and
identify strengths and weaknesses is to
start with the historical analysis of ones
own organisation over a period of
time.historical analysis is a good measure
of how well or badly an organisation has
progressed with respect to its own past
performance.
INDUSTRY NORMS
The industry to which a business
belongs is the most obvious choice for
comparison with regard to a wide
range or parameters. A company
might check whether its cost structure
is comparable to that of its
competitors or the budget spending on
advertising is equal to that of its
nearest rival
BENCHMARKING
A benchmark is a reference point for taking
measures against. the process of
benchmarking is aimed at finding the best
practices within and outside the industry
to which an organisation belongs. the
purpose of benchmarking by saying that it
is the practice or humble enough to admit
that someone else is better at something,
and being wise enough to learn how to
match and even surpass them at it
Comprehensive analysis
Comprehensive analysis has done
through
1.Key factor rating
2.Business intelligence systems
3.Blance score card
Key factor rating
A comprehensive method, which can be
used in association with a financial
analysis, is that of key factor rating
1. for financial capability factor
(a )question related to
sources of funds
(b)question related to usage of
funds
(c)Question relates to management of funds
for marketing capability
factor
Business intelligence
system
Information technology has made a
huge impact on the way organizations
use their information systems for
organisational appraisal. Method like
key factors rating and balanced
scorecard are implemented by the
means of sophisticated it tools to
make them feasible for the purpose of
decision- making.
Balance scorecard
The balanced scorecard method is
assessment of strengths and
weaknesses of an organisation.
The balance scorecard identifies four key
performance measures as follows
1. customer perspective
2.internal business perspective
3.Innovation and leaning perspective and
4.Financial perspective
conclusion:------
The presented method and technique of organisational
appraisal is very crucial for success of organisation.In
the time of competition and advance technological era
these method are suitable for organisational
appraisal. If any firm possess these organisational
appraisal method there is possibility that orgnisation
can earn profit and maintain a customer satisfaction
and customer loyality.internal analysis, comparative
analysis ,and comprehensive analysis is the method of
organisational appraisal through which a orgnisation
can exist in the competitive market and can enjoy the
bunch of benefits
