?Shanmukha Rao. Padala? **Dr. N. V.S. Suryanarayana
?INTRODUCTION:
?The process of observe an organizational internal environment to identify the strengths and weaknesses that may influence the organization's ability to achieve goals. A firm can exploit its opportunities successfully, depending on its corporate strengths. It can be said that the corporate capabilities of the firm become the focal point for its performance and survival. They play a crucial role, both in identifying the strategy and its success. Corporate capabilities go beyond sales, profit and net worth. It is concerned with the state of mind and outlook of the firm. Corporate strategy ultimately means a matching game between environmental opportunities and organizational strengths to gain competitive advantage. Assessment of organization's strengths and weaknesses is also known as Corporate Appraisal. The internal environment of an organization includes forces that operate inside the organization with specific implications for managing organizational performance. Internal environmental factors, unlike external environmental factors come from within. These factors, collectively defined both trouble sports that need strengthening and the core competencies that the firm can build. An organization can better analyze how much activity might and value or contribute significantly to shape an effective strategy by systematically examining its internal environment.
MEANING OF STRENGTHS & WEAKNESSES:
Organizational analysis requires data and information about the internal environment. SWOT analysis refines this information by applying a general framework for understanding and managing the environment under which a company operates. SWOT analysis consists of evaluating a company's internal strengths and weaknesses and its external opportunities and threats. SWOT analysis underscores the basic point that strategy must produce a good fit between a firm's internal capabilities. Organization strengths and weaknesses are a matter of interpretation. Though, no definition may ever be complete, we would define strengths and weaknesses as follows:
Corporate Strengths: A strength is a strong point for the company i.e., something a company is good at doing or characteristic that gives it an important capability. Strength can be a skill, a competence, a valuable organizational resource or competitive capability or achievement that gives that company an advantage. It refers to competitive advantages and other distinct competencies which a company can exert in the market place. The management and performance of
Corporate Weakness: It refers to constraints or obstacles which check movement in certain desired direction, and may also inhibit organization in gaining a distinctive competitive advantage. A weakness is something the company does not have or does poorly or a condition that outs it at a disadvantageous positions. A weakness may or may not make an organization competitively vulnerable on how much it matters in the competition battle.
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THE CRITERIA FOR DETERMINING STRENGTHS AND WEAKNESSES:
A major problem which must be resolved prior to any analysis of corporate capabilities is the criteria that would determine whether an element under examination is a strength or a weakness.? Four types of criteria have been suggested to classify an element into strength or weakness. These are: i. Historical; ii. Normative; iii. Competitive parity; and iv. Critical Factors for Success.
1. THE HISTORICAL CRITERION
Here, the analyst compares the characteristics under examination with past performances. An improvement over the past performance may be seen as strength, and a decline a weakness. Before, arriving at such conclusion, it is always advisable to check the reliability of the ‘past' in future. In a large number of situations ‘past' may not be valid for future and this would certainly invalidate our assessment or judgment.
2. THE NORMATIVE CRITERION
Here, the basis of judgment is ‘what ought to be' the level of performance to classify a particular element into a strength or a weakness. Thus, based on theory, expert opinion, industry practices or personal opinions, one can develop ‘norms' for evaluation.
3. THE COMPETITIVE PARITY CRITERION
As its basis for judgment, this criterion utilizes the action successful direct competitors or potential competitors. It is based on the premise that a firm must, at the minimum, meet the actions of the competitors. Thus, if the industry practice of providing 60 days credit to the trade is not followed, it may be considered a weakness.
4. THE CRITICAL FACTORS FOR SUCCESS CRITERION
Each business, in some sense, is unique. It requires a set of minimum performance standards and hence capabilities.? This criterion helps to examine the strengths and weakness in the context of meeting the minimum requirements for success.
One criterion is seldom sufficient for a complete evaluation of a firm. Some elements like ‘financial strengths' may be evaluated better on ‘historical' and ‘competition' criteria; and ‘marketing' may be best evaluated on the basis of ‘competition' and ‘critical factors for success criterion.
MEASURING STRENGHS AND WEAKNESSES:
Strengths and weaknesses may exist in varying degrees. Some may view an organisation as very strong which others may consider it not that strong. The same may apply to its weaknesses. This would call for measurement of strengths and weaknesses. There are three measures 1. Attribute Measures, 2. Effectiveness Measures and 3. Efficiency Measures.
1. Attribute Measures
This statement is developed to identify or list a characteristic or quality which an organisation possesses or is expected to possess in the near future. camiseta oficial boca juniors Thus, leaving the analysis only at the ‘attribute statement' level may be incomplete and inadequate. In many situations it may however, be the only alternative to express one's strengths or weaknesses.
2. Effectiveness Measures
In this approach, a characteristic is represented by a statement that identifies a capability of an organisation that will help in the accomplishment of a particular task or objective.
3. The Efficiency Measures
As the word ‘efficiency' suggests, it measures the productivity of an organisation in converting inputs into desired outputs. Apparently efficiency measure is implementable only in quantifiable situation.
The use of three types of the measurements is a function of the degree of specificity possible for a given element or characteristic. Attribute measurement is simply a listing of the capabilities of an organisation; an effectiveness measure relates to the abilities of an organisation to achieve objectives; and an efficiency measure is concerned with the optimum conversion of firm's resources into desired output. The type of measurement a firm would employ will be a function of - the characteristic which is being measured and the level within the organisation which is to utilize the measurement.
?ANALYSIS OF STRENGTHS AND WEAKNESSES:
A comprehensive and objective analysis of strengths and weaknesses may be facilitated by the use of a format or a framework. In this section we will study a few of such formats or frameworks.
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