corporate appraisal process

2.  Hafiz Awais
 Rai Bilal Mushtaq
 Ali Javed
 Naveed Shoukat
 Rafah Pirzada

4.  refers to an examination of the entire
organization from different angles. It is a
measurement of the readiness of the internal
culture of the corporation to interact with
the external environment

5. Outlines the criteria to identify
 corporate strengths
 weaknesses identified and explained.
 performance gap analysis
 Management By Wandering Around(MBWA).

6.  It is the part of swot anylasis
i.e.
 The Air Products, Linde and British Oxygen
companies
 Their competitive strength lies in the ability
to develop and apply high technology science
to their business activities.

7. i.e.
 small and medium sized enterprises
(“SME’s”) choose to position a very specific
or limited range of products on restricted
“niche” markets.
 Such companies may be particularly sencitive
to trading recession or change in their
market because they have nothing else to
fall back on.

8. There are two crietera to identify Corprate
strength and weaknesses.
 functional area
 key issue

9.  Marketing
 Financial
 Operational
 Technology
 human resources
 processes and systems
 leadership and management

10. Marketing strengt and weaknesses can be
 Market position
 Market share;
 Reputation in the community;
 Client or patient perceptions;
 Status as market leader or follower
 Mix and depth of product or service portfolio
 Relative position on product life cycle
 New productdevelopment capability
 Negotiating
 Sales and promotional competence
Example: coca-cola’s strong market position in the soft
drinks sector.

11. Financial strength and weaknesses can be
 relative profitability
 return on capital employed (ROCE)
 earnings per share (EPS)
 cash flow
 Relative efficiency of use of assets(ROA)
 margin of safety
 financial structure(D/E)
 financial management skills and competences.
Example: the potential financial performance of a
well-established, well-located, and well-managed hotel
whose popularity and positive reputation may generate
a significant degree of both profitability and cash flow
from its high occupancy rate.

12. operational strength and weaknesses can be
 Location
 age, and productivity of operational assets
 operational flexibility
 success rates in treating patients
 capacity for rapid response or just-in-time
(JIT)requirements
 quality and reliability of output
 relationship with suppliers
 cost-effectiveness
 type and use of information and communication
technology (ICT) or management information systems
(MIS).
Example: Toyota’s “lean” manufacturing process.

13.  variables may include the type and
complexity of technology;
 ability to manage changing technology;
degree to which technological competencies
offer efficiency gains or competitive
advantage;
 need for continuing investment in
innovation, research and development
(R&D), and new product development (NPD).

14.  variables may include employee type,
competence, quality and productivity;
 ease of recruitment and retention; staff skill
and flexibility; staff education, training and
experience; staff attitude and culture;
expectations;
 employee relations history and attitude to
management; degree of customer service
orientation;
 capacity for response, change and creativity;
cost-effectiveness (etc).

15.  can the organization actually do what it
wants to do with the resources and assets
available or accessible to it?
 ownership structure -(Who owns the
enterprise? Who makes the decisions? What
do they want?)
 the possession of special skills; and
distinctive or core competences.
 the character of the knowledge base. What
does the enterprise know

16.  The quality and character of risk
management. Can the enterprise manage the
risk associated with its business?
 The capacity to develop and manage
international or global activities.Does the
enterprise have the resources and the skills
to operate on a global scale

17.  The process of comparison or
“benchmarking” may lead to the
identification of “gaps” between what was
intended (or what was planned),and what
actually happened. These are sometimes
called plan-performance 30 Principles of S t r
a t e g i c Management gaps.

18.  Under a system of MBWA, leaders, managers,
and planners are involved in a process of
listening and consultation. Policy and
decision-makers, in particular, are required
to hear comments and criticisms, to open
their minds to both the internal and external
environment
 MBWA assumes that the organization
operates within the framework of an open
system. This means that the system will be
“open” (or subject) to external influences
from its environment, and from other
people and other organizations.

19.  to concentrate the choice of strategies in
areas of corporate or resource strength.
 to select strategies that exploit, build upon,
or develop corporate and resource strengths.
 to select strategies that address, remedy, or
minimize the potential impact of corporate
weaknesses