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Every Organization Has Its Trength and Weaknesses

Every Organization Has Its Trength and Weaknesses

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Published by Bharat Kabra

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Published by: Bharat Kabra on Oct 21, 2010
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09/18/2013

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ORGANIZATIONAL INTERNAL APPRAISAL

INTRODUCTION:
Every organization has its trength and weaknesses.some firm may be strong in respect of finance and marketing, and some others in areas like production or human resources. A firm must find out its weaknesses so as to minimize its weaknesses and consolidate its strength.

INTERNAL FACTORS:
Organization need to analyse the internal factors so as to find out its strengths and weaknesses.

Marketing and Distribution Factors:
• • Product Mix: All products are not equated with market share, sales revenue, and profits PLC: the firm need to take decision in respect of promotion , product modifications, and in other respect at each stage and for each product/ brand. Sales Force: training ,motivational and compensation plan can be formulated on the level of motivation and capabilities. Pricing Strategies: to find out whether they are suitable in light of completion , expectation of consumer, and so on. Promotional Efforts: taken to find out the effect of advertising, relations with advertising agencies,sales promotion efforts, and other activities. Distribution channels: dealers network, dealer relationships, and the various channels of distribution so as to find out whether adequate and effective.

• • • •

• Marketing Research :whether they are adequate and well equipped with necessary resources to undertake effective research h activities. STRENGTHS Good Brand / Company Image High Market Share Efficient Channels of Distribution Efficient and Motivated Sales Force Efficient Promotional Efforts Efficient Marketing Research Growth or Matuity Stage of Product Proper Pricing Strategy Balanced Product Mix WEAKNESSES Good Brand / Company Image Low Market Share Inefficient Channels of Distribution Inefficient Sales Force Inadequate Promotional Efforts Lack of Marketing Research Decline Stage of Product Defective Pricing Strategy Single 0r Limited Preoducts Production and Operation MGMT Factors: • • • • • • • • • • Raw Material availability: Inventory Control System: R & D: Locational Patterns: Production capacity Location and Use of Resourses : Operational Procedures: Cost Structure: Production schedules: Plant Maintenance : .

depreciation. Allocation and Uses of funds: whether or not firm allocates and makes optimum use of funds Accounting Practices: whether or not firm adopts efficient accounting practices in respect taxation. .STRENGTHS Proper availabilty of raw materials Efficient inventory control system Adequate and effective R & D Favourable location for plant and offices WEAKNESSES Problem in availabilty of raw materials Poor inventory control system Lack of R & D facilities Unfavourable location for plant and offices Proper use of production capacities Underutilisation of plant capacities Proper and efficient use of resources Efficient operational procedures Lower cost of production Proper production schedule Efficient Maintenance policies Inefficient allocation and use of resources Inefficient operational procedures High cost of production Problem in production schedule Defective Maintenance policies Financing and Accounting Factors: • • • • • • Capital structure: required proper combination of own fund or borrowed fund Sources of funds: whether firm obtained funds from right source at minimum cost as compared to competitors. Fixed capital: whether or not firm obtained fixed capital and at the right time. Working capital: whether or not firm obtained the working capital and at the right time.and so on.

STRENGHS Proper debt –equity ratio Low cost of fund WEAKNESSES Defective capital structure High cost of fund Proper availability of fixed Problem of fixed capital capital Proper availability of working capital Proper allocation and uses of fund Effective accounting practice Problem of working capital Poor allocation and uses of fund Defective accounting practice Personnel and Human Resouse Factors: • • • • • • • Personnel policies Management employees Relationship Employees facilities Motivational factors Skills and capabilities Labour productivity STRENGT Proper personnel policies WEAKNWSSES Defective personnel policies .

The management should follow certain principle of management and organization .Cordial managementemployees relationship Good labour facilities High level of motivation Good level of skills High level of productivity Hostile labour management relationship Poor labour facilities Low level of motivation Poor level of skills Low level of productivity Management and Organisational Factors: The general management and organization factors also affect the success and survival of the organization. some of the important management and organization principles are as follows: • • • • • • Authority – responsibility balance Discipline in the management Well defined mission objective and goal Proper coordination of activities Proper division of work Good organizational structure .

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