Organisation appraisal - live class ppt | Online Mini MBA (Free)

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Organisation appraisal

By Dr.Ashvini Ravi
Associate Dean – Academics
myBskool.com

Published in: Design, Business
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Organisation appraisal - live class ppt | Online Mini MBA (Free)

  1. 1. Appraising an Organisation By Dr.Ashvini Ravi Associate Dean –Academics MyBskool.com
  2. 2. Types 1. Internal - Value Chain 2. Comparative - Benchmarking 3. Comprehensive- Balanced Score Card
  3. 3. 1.Internal Analysis techniques Value Chain analysis- Those businesses that focused their innovation around creating or improving customer value consistently outperformed competitors in their industries
  4. 4.  Revenue and earnings analysis from 100 business launches demonstrated that the value innovators generated 38% of the cumulative revenues and 61% of the total profit.  It seems that value innovation offers the potential for significant competitive advantage.
  5. 5. How does an organisation create value ????
  6. 6.  Learn from the entrepreneurial innovations that have made companies like McDonald’s successful  McDonald’s first “studied what value meant to the customer, defined it as quality and predictability of product, speed of service, absolute cleanliness, and friendliness, then set the standards for all of these”
  7. 7.  They essentially designed an end product that defined customer value  Then created an efficient process to deliver this value  Inexpensively to the customer  Economically for the organization.
  8. 8. Unique Supply Chain Controlled Temperatures Procurement Warehousing Transportation Retailing
  9. 9. Development of the “Cold Chain”
  10. 10. What is a cold chain ??? Why does Mc Donalds need a cold chain ??
  11. 11. What is a Cold Chain ? Warehousing, transportation and retailing of products under controlled temperatures. Necessary for ice creams, frozen vegetables, processed meats, dairy and bakery products. Frozen foods need sub-zero temperatures up to -20°C
  12. 12.  Produces over 2,000 pounds of cheese per month.  15 bulk cooling centers throughout the district from which it purchases milk.  Checks fat content. Detects minute traces of pesticides or antibiotics administered to cows.  This instant rejection forces farmers to follow the best practices in terms of raising livestock, using proper feeds, and cutting down on the use of pesticides and animal medicines.
  13. 13.  McDonald's has provided assistance in the selection of high quality seeds.  Exposed the farms to advanced drip-irrigation technology.  Helped develop a refrigerated transportation system allowing a small business in India to provide fresh, high-quality lettuce to McDonald's urban restaurant locations thousands of miles away.
  14. 14.  Technical and financial support extended by OSI Industries Inc., USA and McDonald’s India Private Limited :  Hi-tech refrigeration plants for manufacturing frozen food at temperatures as low as - 35° C.  The latest vegetable mixers and blenders are in operation.  Keeping cultural sensitivities in mind, both processing lines are absolutely segregated to ensure that the vegetable products do not mix with the non-vegetarian products.
  15. 15.  Specializes in handling large volumes of products  Offers wide range of services: quality inspection, storage, inventory management, deliveries, data collection, recording and reporting.  Effective process control for minimum distribution cost.  A one-stop shop for all distribution management services.  Dry and cold storage facility to store and transport perishable products. (Distribution Centers for Delhi and Mumbai)
  16. 16.  Monitors food as the ingredients move from farms to processing plants to the restaurant  Implements McDonald's Quality Inspection Program (QIP), which carries out quality checks at over twenty different points in the Cold Chain system. Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen Desserts)
  17. 17. Customer Value at McDonald  McDonald's unique 'cold chain’  Mac Donald spent more than six years setting up in India  Enabling customers at retail counters to get the highest quality food products, absolutely fresh and at great value.  Cut down on its operational wastage  Maintain the freshness and nutritional value of raw and processed food products  This has involved procurement, warehousing, transportation and retailing of perishable food products, all under controlled temperatures.
  18. 18.  It trained the local farmers to produce lettuces or potatoes to specifications  explained to the suppliers precisely why only one particular size of peas was acceptable (if they were too large, they would pop out of the patty and get burnt )  The restaurants were not supposed to stock more than three days of inventory
  19. 19.  the time limit for distribution centres or warehouses was a stringent 14 days to minimize costs and optimize quality control.  This required round-the-clock monitoring of pick-ups and truck movements. Since most of the items were perishable, McDonald's standards covered the entire delivery schedules.
  20. 20.  Cleanliness (including the personal hygiene of the drivers),  Temperature control of the food (digital probes were inserted into items selected at random) it transported.  There were data logs to track the movement of each batch.  In the case of a complaint from a restaurant, the batch could be identified, isolated, and dumped.  Learnings from Turkey, the Philippines, Australia, and the US.
  21. 21.  All of McDonald's suppliers followed the internationally acclaimed HACCP systems ( Hazard Analysis and Critical Control Point (HACCP) system to keep food safe from harvest to consumption) wherein both inputs and finished goods were subjected to chemical and microbiological tests.  At the retail outlets, the entire production line was automated using sophisticated technology  Only the final compilation of the bun, cheese and patty - which was done by hand.
  22. 22. McDonald created and delivered the Quality, Service, Cleanliness and Value (QSC&V)
  23. 23.  Successful execution of this strategy allows shareholders to extract an excess portion of this created value as earnings.  Therefore, the organization gains advantage over competitors  When it can create and deliver sufficient value to induce customer to purchase its product or service,
  24. 24.  Rather than blind acceptance of the status quo, the value innovator assumes a fresh-start mentality and attempts to shape the industry’s environment.  Value innovation also seeks the simultaneous reduction of costs to both the customer and the organization.
  25. 25. Creating Value  Blackberry  I pod  BMW  Dell  Facebook  Ebay  Flip kart
  26. 26. Michael Porter
  27. 27. Michael Porter’s Value Chain analysis  Porter – 1985 introduced the value chain framework.  Set of interlinked value creating activities performed  Procurement of basic Raw material to ultimate consumer
  28. 28.  Most organisations engage in hundreds, even thousands, of activities in the process of converting inputs to outputs  These activities can be classified generally as either primary or support activities that all businesses must undertake in some form
  29. 29.  The chain of activities gives the products more added value than the sum of added values of all activities  It is important not to mix the concept of the value chain with the costs occurring throughout the activities  A diamond cutter can be used as an example of the difference  The cutting activity may have a low cost, but the activity adds much of the value to the end product since a rough diamond is significantly less valuable than a cut diamond
  30. 30.  The value-chain concept has been extended beyond individual firms  It can apply to whole supply chains of an industry and distribution networks  A value system includes the value chains of a firm's supplier (and their suppliers all the way back), the firm itself, the firm distribution channels, and the firm's buyers (and presumably extended to the buyers of their products, and so on).
  31. 31. Example of value chain changes Airlines :Backward- Maintenance, Catering Forward- Own booking offices , Air Asia –ebooking Dell- direct marketing
  32. 32. 2. Comparative Analysis Benchmarking
  33. 33. Bench marking  In the early 1980s, Xerox found itself increasingly vulnerable to intense competition from both the US and Japanese competitors  Xerox's management failed to give the company strategic direction.  It ignored new entrants (Ricoh, Canon, and Sevin) who were in the lower-end market and in niche segments.
  34. 34.  The company's operating cost (and therefore, the prices of its products) was high and its products were of relatively inferior quality in comparison to its competitors.  Xerox also suffered from its highly centralized decision-making processes.  Return on assets fell to less than 8% and market share in copiers came down sharply from 86% in 1974 to just 17% in 1984.  Between 1980 and 1984, Xerox's profits decreased from $ 1.15 billion to $ 290 million
  35. 35.  The average manufacturing cost of copiers in Japanese companies was 40-50% of that of Xerox.  Xerox's products had over 30,000 defective parts per million - about 30 times more than its competitors.
  36. 36. REAPING THE BENEFITS  Increase in the number of satisfied customers.  Highly satisfied customers for its copier/duplicator and printing systems increased by 38% and 39% respectively  Customer complaints to the president's office declined by more than 60%  Customer satisfaction with Xerox's sales processes improved by 40%  Service processes increased by 18%
  37. 37.  Administrative processes improved by 21%  Number of defects reduced by 78 per 100 machines.  Service response time reduced by 27%.  Inspection of incoming components reduced to below 5%.  Defects in incoming parts reduced to 150ppm.  Inventory costs reduced by two-thirds.  Marketing productivity increased by one-third.  Distribution productivity increased by 8-10 %.  Increased product reliability on account of 40% reduction in unscheduled maintenance.  Notable decrease in labour costs.  Errors in billing reduced from 8.3 % to 3.5% percent.  Became the leader in the high-volume copier-duplicator market segment.  Country units improved sales from 152% to 328%.
  38. 38. . Bench Marking Definition :A process for improving performance by constantly identifying ,understanding and adapting best practices and processes followed inside and outside the company and implementing the results. The main emphasis of benchmarking is on improving a given business operation or a process by exploiting 'best practices,' not on 'best performance’. Simply put, benchmarking means comparing one's organization or a part of it with that of the other companies.
  39. 39. “Benchmarking is the practice of being humble enough to admit that someone else is better at something and wise enough to try and learn how to match and even surpass them at it.” - APQC, 1998 BENCHMARKING THOUGHTS
  40. 40. BENCHMARKING  In sharp contrast to the conventional approach of setting the future goals extrapolated from the internal practices and past trends.  Since external environment and market conditions change rapidly; goal setting which is internally focused can’t be true reflection of customer’s expectations.
  41. 41. BENCHMARKING  Customers’ expectations are highly liquid and are driven by standards set by best performer.  Any product or service just below these standards may not catch the eyes of customer.
  42. 42. Why use Benchmarking  Survival lies in emulating best and not in lagging behind  Bench marking is time and cost efficient because it involves imitation and adaptation rather than pure invention. Prevents “Re-inventing the wheel”.  Quantum-leaps in performance
  43. 43. Why use Benchmarking  An effective ‘wake-up call’ and helps to make a strong case for change  Practical ways in which step changes in performance can be achieved by learning from others who have already undertaken comparable changes  The impetus for seeking new ways of doing things and promotes a culture that is receptive to fresh approaches and ideas  Opportunities for staff to learn new skills and be involved in the transformation process from the outset.
  44. 44. Types of Benchmarking  Internal benchmarking  External benchmarking  Functional benchmarking
  45. 45. Internal benchmarking Sharing opinions between departments within the same organisation ADVANTAGES:  Easier to implement  Easier to access data DISADVANTAGES:  External ideas blocked
  46. 46. External Benchmarking  Comparison with external organisations to discover new ideas, methods, products and services.  The gap between internal and external practices displays the way where to change and if there is any need to change. Advantages  Helps to measure one’s own performance  Helps to search for best practices Disadvantages  Takes time  Requires support  Legal/ethical isssues  Industrial espionage
  47. 47. Functional Benchmarking: Comparative research to seek world-class excellence by comparing business performance not only against competitors but also against the best businesses operating in different industry Advantages:  Discovering innovative practices Disadvantage:  Not suitable for every organisation
  48. 48. Other Types of Benchmarking  Product Benchmarking  Process Benchmarking  Strategic Benchmarking How companies compete, identify the winning strategies that have enabled high-performing companies to be successful in their marketplaces.
  49. 49. Gap Analysis (Spider chart) Current performance of the host Current performance of the partner Current performance of the host for variable ‘K’. Best of the best (current performance of the partner for variable ‘A’. Total customer satisfaction
  50. 50. – Clearly defined purpose – Continual analysis & reassessment – BM methodology must be appropriate – Significance of results must be clear – Conclusions must be justified by the data – Never compromise integrity for BENCHMARKING ESSENTIALS
  51. 51. BENCHMARKING ESSENTIALS  Investigation must be systematic  A high code of ethics is essential  Successful benchmarking requires a planned approach  Requires senior management commitment  Must establish & enforce milestones
  52. 52.  Internal training for company personnel  Access to a benchmarking database  Professional BM analysts to support studies BENCHMARKING ESSENTIALS
  53. 53. 1. Fear of being seen as “copying” 2. Fear of losing competitive advantage by sharing information 3. Arrogance – “we are the best, why benchmark?” 4. Benchmarking trap – benchmark that which is convenient, but may not be important. Adapted from Watson 1992 BARRIERS TO BENCHMARKING
  54. 54. 5. Impatience – “A quintessential trait” 6. Excuses are too easy: – We are too small – We are too busy – We are too different – Nobody else does what we do – We do it better than anyone else Adapted from Watson 1992 BARRIERS TO BENCHMARKING
  55. 55. 1. Key is to “Adapt not adopt” – Deming 2. Benchmarking does not come as a natural process for many – competitiveness does, but not benchmarking, because benchmarking requires a team approach. BENCHMARKING OBSERVATIONS
  56. 56. Value Chain analysis  It seems that value innovation offers the potential for significant competitive advantage  McDonald’s first “studied what value meant to the customer, defined it as quality and predictability of product, speed of service, absolute cleanliness, and friendliness, then set the standards for all of these”
  57. 57.  Benchmarking means comparing one's organization or a part of it with that of the other companies.  Different types of benchmarking  How Xerox benchmarked …..
  58. 58.  How did McDonald improve customer value ?  How did Xerox benchmark ?
  59. 59. Comprehensive Analysis- Combination of techniques 1. Balanced Score card- Proposed by Robert S Kaplan and David Norton-Set of measures that give top Management a comprehensive view of business
  60. 60. Why Do Organizations Struggle So Hard With Strategy? 1 in 10 organizations execute their strategies successfully 72% of CEOs believe that executing their chosen strategy is more difficult than developing a good strategy Fortune Magazine, 1998 Malcolm Baldrige CEO Survey, 2002
  61. 61. Strategic Learning Loop Initiatives & Programs test the hypotheses Output (Results) reporting Management Control Loopfunding Input (Resources) update the strategy PERFORMANCE 85% of management teams spend less than one hour per month on strategy issues 92% of organizations do not report on lead indicators 60% of organizations don’t link strategy & budgets 78% of organizations lock budgets to an annual cycle 20% of organizations take more than 16 weeks to prepare a budget MAKE STRATEGY A CONTINUAL PROCESS STRATEGY BALANCED SCORECARD BUDGET The Problem: The Strategic Management Process Is Missing in Most Organizations #5
  62. 62. Strategy Development or Strategy Execution? Organizations Need Both Strategic Success At Risk Doomed From The Start Missed Opportunity StrategyFormulation Flawed Sound FlawedSoundStrategic success requires going beyond successful strategy formulation to successful strategy execution Source: 1Execution: The Discipline of Getting Things Done, by Larry Bossidy, 2002. Strategy Execution 1
  63. 63. Strategy Execution Challenge There are generally accepted tools to manage finances, customers, processes, and people. But what about strategy? The Balanced Scorecard is the vehicle that fills the Strategy Management Gap Financial Management Tools EVA Balance Sheets Income Statements Shareholder Value Analysis Customer Management Tools Customer Satisfaction Measurement Customer Relationship Management Segmentation Analysis One-to-One Marketing Process Management Tools Six Sigma Supply Chain Integration Cycle Time Reduction TQM People Management Tools Core Competencies Knowledge Management Pay for Performance HRIS Strategy Management Tools ?
  64. 64. Where it started . . . Introduced in 1992, by Robert Kaplan and David Norton, the Balanced Scorecard is the most commonly used framework for ensuring that agencies execute their strategies. Today, about 70% of the Fortune 1,000 companies utilize the Balanced Scorecard to help manage performance. Balanced Scorecards are used as the roadmap for creating the “Strategic Management System” And this will drive overall organizational performance
  65. 65. 1. Customer Perspective- How do customers see us 2. Internal Business Perspective- What must we excel in ? 3. Innovation and learning perspective-Can we continue to create value ? 4. Financial perspective – How do we look at shareholders ? 4 key performance measures in Balanced Scorecard
  66. 66. Balanced Scorecards tell you the knowledge, skills and systems that your employees will need (learning and growth) to innovate and build the right strategic capabilities and efficiencies (internal processes) that deliver specific value to the market (customer) which will eventually lead to higher shareholder value (financial).
  67. 67. Balanced Scorecard Organizations Are Achieving Breakthrough Results Public Sector SMDC Health System • Profitability up $23m • Customer Satisfaction City of Charlotte • Customer Satisfaction = 70% • Public Official Award Duke Children’s Hospital • Customer Satisfaction #1 • Cost/Case 33% Defense Logistics Agency • $130MM in Savings in FY2002 • Processed $2.2B more requisitions for its customers Private Sector Hilton Hotels • From last to first in industry • ROI 6% --> 16% • Customer Loyalty 5% • EDITDA margins 3% above average UPS • Revenues 9% • Net Income 33% Wendy’s International • Mkt. Cap $2.5 --> $4b • Stock Price up 75% Mobil BREAKTHROUGH RESULTS Shareholder Value Profitable Growth Cost Reduction Organizational Alignment Customer Satisfaction
  68. 68. STRATEGY: They made strategy the central organization agenda FOCUSED: They created incredible focus on the strategy ORGANIZATION: They mobilized their employees to act in fundamentally different ways, guided by the strategy The Balanced Scorecard Is a Performance Management Program That Puts Strategy at the Center of the Process How Did They Do It? They Created “Strategy-Focused Organizations” STRATEGY
  69. 69. Knowledge, Skills, Systems, and Tools Financial Results To Build the Strategic Capabilities.. Needed to Deliver Unique Sets of Benefits to Customers... To Drive Financial Success... And Realize the Vision Equip our People... Internal Capabilities Customer Benefits …Reflecting a “Natural Cause and Effect Logic” of Business Performance
  70. 70. Strategic Theme: Operating Efficiency Profitability Financial Learning More customers Ground crew alignment Lowest prices Fewer planes Flight Is on time Customer Internal Fast ground turnaround Illustrative Example: Southwest Airlines The Balanced Scorecard Should Tell the Story of the Strategy What will drive operating efficiency?” • More customers on fewer planes How will we do that? • Attract targeted customer segments who value price and on time arrivals What must the internal focus be? • Fast turnaround Will our people do that? • Educate and compensate ground crew regarding how they contribute to the firm’s success • Employee stockholder program
  71. 71. Let’s Take a Minute to Agree Upon Some Common Vocabulary Objectives • Fast ground turnaround Statement of what strategy must achieve and what’s critical to its success Target • 30 Minutes • 90% The level of performance or rate of improvement needed Strategic Theme: Operating Efficiency Profitability Financial Learning More customers Ground crew alignment Lowest prices Fewer planes Customer Internal Fast ground turnaround Diagram of the cause and effect relationships between strategic objectives (Strategy Map) Flight Is on time • Cycle time optimization Key action programs required to achieve objectives InitiativeMeasurement • On Ground Time • On-Time Departure How success in achieving the strategy will be measured and tracked
  72. 72. PHILIPS  WHICH IS THE COUNTRY OF ORIGIN OF THIS COMPANY ?
  73. 73.  Philips was founded in 1891 by Gerard Philips who established a facility at Eindhoven, a small town in the Netherlands, to produce carbon filament lamps and electrical products.  Gerard's younger brother, Anton, joined the business in 1895 as a salesperson.
  74. 74.  By the early 1900s, Gerard's company had emerged as one of the largest producers and marketers of carbon-filament lamps.  In the 1920s, Philips began the mass production of consumer goods, and started to diversify its product range. X-ray radiation and radio reception were key focus areas for Philips and the company's innovations in these areas were protected through patents.
  75. 75.  During the late 1990s the external environment was changing rapidly and Philips needed to respond quickly to these changes.  However, the existing organization structure at Philips did not support this kind of change.  The company's operations were spread across several countries, and the products were most often sold in the country in which they were manufactured.
  76. 76.  Due to high manufacturing costs, the products could not be priced competitively.  This led to the company initiating job cuts, selling unprofitable businesses and closing down several manufacturing facilities  Rapid changes in the external business environment and growing competition due to Asian manufacturers
  77. 77.  With growing wage levels, selling and manufacturing in the same country was not a lucrative value proposition.  This was especially the case in some of Philips' major markets in Western Europe where the cost of manufacturing had increased significantly.
  78. 78.  At the same time, the growing influence of Asian companies like LG and Samsung increased competition in the businesses in which Philips was operating.  These changes made Philips realize that its operations needed to be more flexible, more innovative, and value adding. A silo mentality had developed in the organization due to years of bureaucracy...
  79. 79. Implementing Balanced Scorecard  At Philips, the initiative to implement the Balanced Scorecard system came from the top management at its headquarters in the Netherlands. All the subsidiaries of Philips across the world were instructed by their quality departments on how to go about the implementation...
  80. 80. Knowledge, Skills, Systems, and Tools Financial Results To Build the Strategic Capabilities.. Needed to Deliver Unique Sets of Benefits to Customers... To Drive Financial Success... And Realize the Vision Equip our People... Internal Capabilities Customer Benefits …Reflecting a “Natural Cause and Effect Logic” of Business Performance
  81. 81.  The balanced scorecard serves not only as the starting point for identifying those areas where breakthroughs in performance are most needed, but also as an instrument for tracking progress."  - Annual Report, Philips Electronics NV, 2001
  82. 82.  Philips realized the need to transform into a flexible organization and shift focus from high-volume business to high-value business.  In order to bring in the desired change, Philips embarked on an improvement program, in all its divisions and departments across the world, encompassing all the employees  The program, called Business Excellence through Speed and Teamwork (BEST), described a set of methods and tools through which Philips aimed to improve business and financial performance.
  83. 83.  BEST was a company-wide initiative aimed at achieving excellence in every aspect of business at Philips. Philips used several tools and approaches as a part of BEST.  One of them was Balanced Score Card
  84. 84.  The top management, and all the divisions identified the factors that were important to create value and they were grouped under four perspectives - competence, process, customers and financial. After establishing the 'Critical Success Factors' (CSFs), key indicators to measure the CSFs were decided. Some of the indicators like achieving revenue growth, employee satisfaction, customer satisfaction were common for all the business units while other indicators differed.
  85. 85.  During the periodical management reviews, the Balanced Scorecard was used as an instrument to evaluate actual performance against the targets and to monitor future plans.
  86. 86.  Philips used the traffic light system  with the green light indicating a target that had been met,  amber indicating performance in line with the target,  and red denoting a problem area, to measure the level of achievement of the key indicators.
  87. 87.  The 117-year-old Dutch company was a lumbering conglomerate that made everything from semiconductors to light bulbs, without clear leadership in anything.
  88. 88.  Today Philips is on its way to becoming a case study in European restructuring. While still a conglomerate, it has streamlined its business and revitalized its brand under the leadership of chief executive Gerard Kleisterlee. Its financial performance has also improved.
  89. 89.  in 2006, Philips unloaded 80% of its volatile semiconductor business for 6.4 billion euros ($9.6 billion). It has also been steadily selling off its holdings in Taiwan Semiconductor which it hopes to unwind by 2010. Philips also plans to sell most of its nearly 20% stake in its South Korean venture, LG Philips LCD, by next year. Exit from Exit from Semiconductor business
  90. 90. Building capability in Health Care and Lighting  Meanwhile, Philips has been busy putting all of this cash to work.  In December, it announced a share buyback, worth 5 billion euros ($7.2 billion). It has also been on a shopping spree, buying a handful of companies that will bolster its growth prospects. These include Respironics (in home health care), Visicu (in health care information technology), and Genlyte (in lighting fixtures). These deals should put Philips in a position to deliver more stable growth and better profitability in the future.
  91. 91.  Philips is a leading maker of light-emitting diodes (LEDs), LEDs are brighter, cooler, and more-energy efficient than regular bulbs, and Philips is building a dominant position in this market.
  92. 92.  Philips [also] is capitalizing on another important trend-the growth of home care and patient monitoring.  Another growth opportunity: emerging markets. About a third of Philips' revenue comes from emerging markets, including Asia, Latin America, and Russia.
  93. 93. Balanced Scorecard Implementation at Philips  Our aim for adopting the balanced scorecard solution is to consistently communicate strategy deep down into Philips' 80 businesses and support more than 10,000 managers with tools to turn strategy into action by sharing knowledge, aligning actions, monitoring progress and learning."1  - Peter Geelen of Philips Corporate Control, Responsible for the Balanced Scorecard Project, in 2001.
  94. 94. Balanced Score Card is a comprehensive Management System for --- STRATEGY PLANNING AND EVALUATION
  95. 95. Techniques used for Organisation Appraisal Types- 1. Internal – Value Chain, Quantitative,qualitative 2. Comparative- Historical, Industry norms, Benchmarking 3. Comprehensive- Balanced Score Card, Key Factor Rating
  96. 96. Key factor Rating Used by consultants : Look at the strengths and synergies, that result in capabilities described earlier….  Credit worthiness  Low cost of capital  Product  Price
  97. 97. Asking relevant questions in each area  How does the company’s products compare wrt ….Brand Image …..
  98. 98. OCP- Organisation Capability Profile Factor Weakness -5 Normal 0 Strength +5 Source of fund…
  99. 99.  The chart helps strategists to assess the S &W of the organisation in each functional area
  100. 100. SAP – Strategic Advantage Profile Outcome of the Organisation Appraisal Similar to ETOP for opportunities and threats Gets input from OCP Picture of more critical factors affecting Strategic Posture
  101. 101. For a -------- company Capability Factor S or W Competitive S or W Finance High cost of capital HR Comparable to competitors
  102. 102.  The Organisation Appraisal can be done by a detailed OCP or a summarised SAP

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