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

Appraising an Organisation
By Dr.Ashvini Ravi
Associate Dean –Academics
MyBskool.com

Types
1. Internal - Value Chain
2. Comparative - Benchmarking
3. Comprehensive- Balanced Score Card

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

 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.

How does an organisation create
value ????

 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”

 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.

Unique Supply Chain
Controlled Temperatures
Procurement Warehousing
Transportation Retailing

Development of the “Cold Chain”

What is a cold chain ???
Why does Mc Donalds need a cold chain ??

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

 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.

 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.

 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.

 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)

 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)

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.

 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

 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.

 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.

 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.

McDonald created and delivered the
Quality, Service, Cleanliness and Value
(QSC&V)

 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,

 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.

Creating Value
 Blackberry
 I pod
 BMW
 Dell
 Facebook
 Ebay
 Flip kart

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

 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

 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

 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).

Example of value chain changes
Airlines :Backward- Maintenance, Catering
Forward- Own booking offices , Air Asia –ebooking
Dell- direct marketing

2. Comparative Analysis
Benchmarking

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.

 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

 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.

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%

 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%.

. 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.

“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

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.

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.

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

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.

Types of Benchmarking
 Internal benchmarking
 External benchmarking
 Functional benchmarking

Internal benchmarking
Sharing opinions
between
departments
within the same
organisation
ADVANTAGES:
 Easier to implement
 Easier to access data
DISADVANTAGES:
 External ideas blocked

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

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

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.

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

– 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

 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

 Internal training for
company personnel
 Access to a
benchmarking database
 Professional BM
analysts to support
studies

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

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

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

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”

 Benchmarking means comparing one's organization
or a part of it with that of the other companies.
 Different types of benchmarking
 How Xerox benchmarked …..

 How did McDonald improve customer value ?
 How did Xerox benchmark ?

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

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

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

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

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
?

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

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

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).

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

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

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

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

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

PHILIPS
 WHICH IS THE COUNTRY OF ORIGIN OF
THIS COMPANY ?

 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.

 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.

 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.

 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

 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.

 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...

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...

 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

 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.

 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

 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.

 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.

 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.

 The 117-year-old Dutch company was a lumbering
conglomerate that made everything from
semiconductors to light bulbs, without clear
leadership in anything.

 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.

 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

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.

 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.

 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.

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.

Balanced Score Card is a comprehensive Management
System for --- STRATEGY PLANNING AND
EVALUATION

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

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

Asking relevant questions in
each area
 How does the company’s products compare wrt
….Brand Image …..

OCP- Organisation Capability
Profile
Factor Weakness
-5
Normal
0
Strength
+5
Source of
fund…

 The chart helps strategists to assess the S &W of the
organisation in each functional area

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

For a -------- company
Capability Factor S or W Competitive
S or W
Finance High cost of
capital
HR Comparable to
competitors

 The Organisation Appraisal can be done by a
detailed OCP or a summarised SAP

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

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

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