SWOT Analysis:Corporate Appraisal

MBA-Day

Corporate Appraisal

Is the process through which managers analyse the various factors of their organisation to evaluate their relative strengths and weaknesses so as to meet the opportunities and threats of the environment

The Strategic Advantages Profile:

Is a systematic evaluation of the enterprises strategic advantage factors weighted by the significance of each factor for the company in its environment

Process of Corporate Appraisal:

Identification of key factors Identification of strategic importance of factors Assessing strengths and weaknesses on key factors Preparing Strategic Advantages Profile Relating strategic advantages to strategy

Strategic factors in Corporate Appraisal:

Marketing factors Production/operations Finance and accounting Personnel and management

Marketing Factors:

Competitive competence Product mix Product life cycle Marketing research Channels of distribution

Sales force Pricing Promotional efforts

Production/Operations:

Allocation and use of resources Rationalisation of resources Locational pattern Production capacity and its use Cost structure Cost-volume-profit relationship

Operation procedures Raw materials availability Inventory control system Research and development Patent rights

Finance and Accounting:

Capital cost Capital structure Financial planning Tax benefits Pattern of shareholding

Relationship with shareholders and financers Accounting procedures

Personnel and Management

Corporate image and prestige Organisational climate Top management constitution and philosophy Quality of management personnel Management practices

Organisation structure Industrial relations Organisational external relationships

Methods of Corporate Appraisal:

Financial analysis method Key factor rating method

Synergy

Is the process of putting two elements together to achieve a total greater than the sum of the individual parts This effect can be described as 2+2=5

Synergy effect in the process of strategy formulation refers to the degree of complementarity between present skills and resources and the future skills and resources which would be required for a strategy