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Organisational appraisal

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DR SUNANDA MITRA

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Framework for the development of strategic advantage by an organisation
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STRATEGIC ADVANTAGE

ORGANISATIONAL CAPABILITY

COMPETENCIES

SYNERGISTIC EFFECTS

STRENGTHS AND WEAKNESSES

ORGANISATIONAL BEHAVIOUR

ORGANISATIONAL RESOURCES
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ORGANISATIONAL RESOURCES 2/27/12 DR SUNANDA MITRA 44 .

Firm is bundle of resources tangible / intangible 2/27/12 DR SUNANDA MITRA 55 .

P Physical resources h y s i H Human resources c u a m l a r n O Organizational resources e r s e g o s a u o n r u i c r z e c a s e 2/27/12 DR SUNANDA MITRA ti 66 .

Physical resources ● Plant / equipment ● Technology ● Geographical location ● Access to raw material Human Organizational resources resources ● relations ● Informal hip relationship ● judgment ● Formal system ● Training ● Experien ce ● Intelligen ce 2/27/12 DR SUNANDA MITRA 77 .

Strategic advantage can be get if resources possessed 2/27/12 DR SUNANDA MITRA 88 .

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Organizational behaviour 2/27/12 DR SUNANDA MITRA 1010 .

Unique in sense Special identity 2/27/12 DR SUNANDA MITRA 1111 .

Quality of leadership Management philosophy Shared values culture Quality of work environment Organizational politics 2/27/12 DR SUNANDA MITRA 1212 .

Hard side (resources) Marriage Soft side (behaviour) Together they produce strength & weakness for organization 2/27/12 DR SUNANDA MITRA 1313 .

Strength & weakness 2/27/12 DR SUNANDA MITRA 1414 .

Strength & weakness don’t exist in isolation They should be combined Strength (inherent Weakness(inherent limitation) 2/27/12 DR SUNANDA MITRA 1515 .

Synergistic effect 2/27/12 DR SUNANDA MITRA 1616 .

Strong point Bigger strong point Strong point 2/27/12 DR SUNANDA MITRA 1717 .

Weak Bigger Weak point Weak 2/27/12 DR SUNANDA MITRA 1818 .

2 2 5 2 2 3 2/27/12 DR SUNANDA MITRA 1919 .

competencies 2/27/12 DR SUNANDA MITRA 2020 .

Resources + behaviour Strength / weakness Synergistic effect 2/27/12 DR SUNANDA MITRA 2121 .

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MARKETING.. Exix ts 2/27/12 DR SUNANDA MITRA 2424 .Mostly developed in functional areas ● FINANCE. R&D ….

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Finance capability 2/27/12 DR SUNANDA MITRA 2626 .

AVAIBILITY USAGE MANAGEMENT OF FUNDS 2/27/12 DR SUNANDA MITRA 2727 .

Sources Of Funds ● Usage Of Fund Relationship With Shareholders Current Assets Fixed Assets Capital Investment Dividend Distribution Management Of Funds ● ● ● ● ● ● Credit Availability Reserves & Surplus Procureme nt Of Capital Capital Structure Working Capital ● ● ● ● ● ● ● Inflation Return & Risk Management Budgeting System Financial Health 2/27/12 DR SUNANDA MITRA 2828 .

STRENGTHS FOR FINANCIAL CAPABILITIES ACCESS TO FINANCIAL RESOURCES GOOD RELATIONSHIP WITH FINANCIAL INSTITUTIONS EFFICIENT CAPITAL BUDGETING LOW COST OF CAPITAL SHAREHOLDERS’ CONFIDENCE TAX BENEFIT MERGERS ACQUISITIONS 2/27/12 DR SUNANDA MITRA 2929 .

MARKETING CAPABILITIES 2/27/12 DR SUNANDA MITRA 3030 .

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STRENGTH FOR MARKETING FACTORS 2/27/12 DR SUNANDA MITRA 3232 .

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OPERATIONAL CAPABILAITIES 2/27/12 DR SUNANDA MITRA 3434 .

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PRODUCT DESIGN. TECHNOLOGY USED 2/27/12 DR SUNANDA MITRA 3636 . MATERIL SUPPLY. COST & QUALITY CONTROL. AUTOMATION.LOCATION. PRODUCTION PLANNING. LAYOUT. PRODUCT DEVELOPMENT .

I T C R F H N O E A I C N L V G E T I A H N R A U T I O B R L O C L A E R A E B V Y L E S E L C O U P O N E L F T L C A R A E N C O B T A L R O P F L A T O C S C I 2/27/12 DR SUNANDA MITRA 3737 .

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PERSONNEL CAPABILITIES 2/27/12 DR SUNANDA MITRA 4040 .

EMPLOYEES’ CHARECTERISTICS CHARECTERISTICS INDUSTRIAL INDUSTRIAL RELATION RELATION 2/27/12 DR SUNANDA MITRA 4141 .PESONNE PESONNE L SYSTEM L SYSTEM ORG. EMPLOYEES’ ORG.

General management capability 2/27/12 DR SUNANDA MITRA 4242 .

General management system General managers External relationship 2/27/12 DR SUNANDA MITRA 4343 .

Methods & techniques used for organizational appraisal 2/27/12 DR SUNANDA MITRA 4444 .

INTERNAL INTERNAL ANALYSIS ANALYSIS ● COMPARATIVE COMPARATIVE ANALYSIS ANALYSIS ● COMPREHENSIVE COMPREHENSIVE ALANIYSIS ALANIYSIS ● ● VALU E CHAI QUANTATIVE N ANALYSIS HIST ORIC AL INDUST RY NORMS BENC HMAR KING BALANCE SCORE CARD KEY 2/27/12 FACTOR VALUE CHAIN QUANTATIVE ANALYSIS HIST ORIC AL INDUSTR Y NORMS BENCH MARKI NG BALANCE SCORE CARD KEY FACTOR DR SUNANDA MITRA RATING VALUE CHAIN QUANTATIVE ANALYSIS HISTO RICAL INDUSTRY NORMS BENCHM ARKING BALANCE SCORE CARD KEY FACTOR 4545 RATING ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● .

INTERNAL ANALYSIS 2/27/12 DR SUNANDA MITRA 4646 .

Strengths Possessed Resources developed capabilities Weaknesses lacking Resources deficient capabilities Click to edit Master text styles Second level ● ü ü Third level ● Fourth level ● Fifth level ü ü ü Prevents an organization from developing a sustainable competitive advantage 2/27/12 DR SUNANDA MITRA 4747 .

Value Chain Analysis Value Chain Analysis Customers want (demand) some type of value from the goods and services they purchase or obtain Customer value arises from ● (1) Uniqueness of product or service (2) Low-priced product/service (3) Quick response to specific or distinctive customer needs ● ● Allow assessment of cost .

VALUE CHAIN Michael porter MITRA 2/27/12 DR SUNANDA (1985) 4949 .

The Value Chain The value chain identifies the separate activities and business processes performed(inter-linked activities) to create customer value. Outboard logistics. Consists of two types of activities Primary activities : create customer value ● Inbound logistics. HRM. Sales & Marketing. General Administration (Firm infrastructure) . Technological development. & Customer Service Support activities: Support primary activities ● Procurement. Operations.

Product R&D. Technology. purchasing. physical recourses. Human Resources Management General Administration (Firm Infrastructure) Support .A Typical Value Chain rimary Activities and Costs Inbound Logistics Operations Outbound Logistics Sales and Marketing Service Profit Margin rocurement.

Costs. Costs. & Margins of Suppliers Internally Performed Activities. & Margins Activities.The Value Chain System Upstream Value Chain Firm’s Own Value Chain Downstream Value Chains Activities. Costs. & Margins of Forward Channel Allies & Strategic Partners Buyer/User Value Chains .

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. Basil Blackwell. 1991. AT&T. Grant..g. IBM. Sony • APPLE • Canon Source: Robert M.Identifying a Company’s Capabilities and Value Chain Functional Area • Corporate head office • Management information • Research and development • Manufacturing • Product design • Marketing • Sales and distribution Capability • Capability in basic research • Ability to produce innovative products • Speed of new product development Example e. Contemporary Strategy Analysis.

Soft Drinks Industry • Processing of basic ingredients Syrup manufacture Bottling & can filling Wholesale distribution Retailing • • • • Computer Software Industry • Programming .

COMPARATIVE ANALYSIS COMPARATIVE ANALYSIS ● HISTORICAL ● INDUSTRY NORMS ● BENCHMARKING 2/27/12 DR SUNANDA MITRA 5656 .

BENCHMARKING 2/27/12 DR SUNANDA MITRA 5757 .

also in other industries 2/27/12 DR SUNANDA MITRA 5858 .process of identifying "best practice" in relation to both products & processes search for "best practice" can take place both inside a particular industry.

The objective   To  understand and evaluate current position  of a business organisation The Benchmarking Process Understand in detail existing business the processes Analyse the business or processes of others Compare own In relation to "best business practice" & performance with 2/27/12 DR SUNANDA MITRA GHOSH 5959 that of others To identify areas of analysed performance Implement the steps improvement. .

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Often undertaken • Assessing relative level of performance in key areas or activities in comparison with others in the same sector 6161 • and finding ways of • .Types of Benchmarking Type Description Most Appropriate for the Following Purposes Re-aligning business strategies that have become inappropriate • Strategic Benchmarking Performance or Competitive Benchmarking 2/27/12 Need to improve overall performance •long-term strategies for high-performers to succeed. •Considering high level aspects •core competencies/developing new products and services and improving capabilities •take a long time to materialise • key products and services. •Benchmarking partners are •Drawn from the same DR SUNANDA MITRA sector.

Type Description Functional Benchmarking External Benchmarking 2/27/12 To benchmark with partners drawn from different business sectors or areas of activity •to find ways of improving similar functions •can lead to innovation and dramatic improvements. •Involves analysing •Where examples of outside organisations good practices can be that are known to be found •in other organisation best in class. •External benchmarking •s and there is a lack of provides opportunities good practices of learning from those • within internal who are at the "leading business units 6262 DR SUNANDA MITRA • Most Appropriate for the Following Purposes •Improving activities or services for which counterparts do not exist .

are there lessons to be learned from other industries 2/27/12 DR SUNANDA MITRA 6363 .

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Metro systems have grabbed the imagination of urban planners in India
UNCOMMON BUREAUCRAT 

The Delhi Metro Rail Corporation (DMRC), which implemented the Metro network ahead of schedule Nearly three years ahead of schedule and on budget, Now consultant for many projects The corporation has also been a consultant to Jakarta Mass Rapid Transit System in Indonesia. Offi cials from Pakistan, Ireland, Syria, Sri Lanka and Vietnam have
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For lack of funds, he went overseas, tapping the Japan Bank of International Cooperation for loans to cover 60% of the cost. By comparison, it took the city of Kolkata 22 years to build its own metro because of a paucity of funds.  Looked world for top companies with extensive experience in the field. Pacific Consultants International from Japan advised on the engineering matters, Korea's Rotem and Japan's Mitsubishi supplied the initial shipment of coaches, France's Alstom responsible for the design of the automatic train control system. 

also interacted with the DMRC.

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INTERNAL INTERNAL ANALYSIS ANALYSIS

COMPARATIVE COMPARATIVE ANALYSIS ANALYSIS

COMPREHENSIVE COMPREHENSIVE ALANIYSIS ALANIYSIS

VALU E CHAI QUANTATIVE N ANALYSIS HIST ORIC AL INDUST RY NORMS BENC HMAR KING BALANCE SCORE CARD KEY 2/27/12 FACTOR

VALUE CHAIN QUANTATIVE ANALYSIS HIST ORIC AL INDUSTR Y NORMS BENCH MARKI NG BALANCE SCORE CARD KEY FACTOR DR SUNANDA MITRA RATING

VALUE CHAIN QUANTATIVE ANALYSIS HISTO RICAL INDUSTRY NORMS BENCHM ARKING BALANCE SCORE CARD KEY FACTOR 6666 RATING

COMPREHENSIVE ALANIYSIS COMPREHENSIVE ALANIYSIS

BALANCE SCORE CARD

KEY FACTOR RATING

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BALANCE SCORE CARD 2/27/12 DR SUNANDA MITRA 6868 .

Balanced Scorecard § Balanced Scorecard – A model integrating financial and non financial measures. (Kaplan & Norton 1996) § Causal link between outcomes drivers of such outcomes and performance § Translates the vision and strategy of a business unit into objectives and measures in 4 distinct areas § Financial § Customer § Internal Business process § Learning and growth .

BALANCED SCORECARD.KAPLAN & NORTON 4 performance measures Customer perspective Internal business perspective Innovation & learning perspective Financial perspective .

.The Balanced Scorecard Purpose of Balanced Scorecard: A method of implementing a business strategy by translating it into a set of performance measures derived from strategic goals that allocate rewards to executives and managers based on their success at meeting or exceeding the performance measures.

BSC as a Measurement System Financial Customer Relations Vision and Strategy Internal Service Process Learning. Innovation and Growth .

Casual link between the measures Financial Perspective How do we look to our Shareholders? Customer Perspective How do our customers look at us? Learning and Growth Perspective How can we continue to improve? Internal Business Perspective What we must excel at? .

BSC: Causal Relationships Strategy Customer Financial Internal Process Learning .

Linking BSC and Strategy Learning & Growth Drivers  Outcomes Strategic Initiatives Internal Process Drivers  Outcomes Financial Goals Customer Perspective Drivers  Outcomes .

BALANCED SCORECARDKAPLAN & NORTON 4 performance measures Customer perspective Internal business perspective Innovation & learning perspective Financial perspective .

The US Army was one of the first users of the balanced scorecard . 2/27/12 DR SUNANDA MITRA 7777 . all round the world.and still uses it today.

The USACE and the balanced scorecard The US Army Corp of Engineers (USACE). presence from Belize to New Zealand. measures its performance across a basket of strategic measures 2/27/12 DR SUNANDA MITRA 7878 .

and adjusting the strategy accordingly.AT LAST 1. 4. Translating the vision into operational goals. index setting Feedback and learning. DR SUNANDA MITRA 7979 2. 2/27/12 . Communicating the vision and link it to individual performance. Business planning. 3.