PARTICIPANTS Hafiz Awais Rai Bilal Mushtaq Ali Javed Naveed Shoukat Rafah Pirzada

CORPORATE APPRAISAL

CORPORATE APPRAISAL 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

CORPRATE APRAISAL PROCESSOutlines the criteria to identify corporate strengths weaknesses identified and explained. performance gap analysis Management By Wandering

Around(MBWA).

ANALYSING STRENGTH It is the part of swot anylasisi.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.

ANANYLASING WEAKNESSi.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.

CRITERIA FOR IDENTIFYING CORPORATE STRENGTHS AND WEAKNESSES

There are two crietera to identify Corprate strength and weaknesses.

functional area key issue

STRENGTH AND WEAKNESS ANYLASIS THROUGH FUNCTIONAL AREA

Marketing Financial Operational Technology human resources processes and systems leadership and management

MARKETINGMarketing 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 competenceExample: coca-cola’s strong market position in the soft

drinks sector.

FINANCIALFinancial 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.

OPERATIONALoperational 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.

TECHNOLOGY 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).

HUMAN RESOURCES 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).

KEY ISSUES 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

KEY ISSUES (CONT...) 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

PERFORMANCE GAP ANALYSIS 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.

MANAGEMENT BY WANDERING AROUND (MBWA) 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.

THE USES OF CORPORATE APPRAISAL WITHIN STRATEGIC MANAGEMENT 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