SWOT Analysis-Corporate Appraisal
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Transcript of SWOT Analysis-Corporate Appraisal
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 enterprise’s 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