Organizational Capability Factors in Strategic Management
"Discover the crucial importance of organizational capability factors in strategy formulation and implementation, covering finance, marketing, operations, personnel, information management, and general management. Explore how strengths and weaknesses in different functional areas impact strategic success."
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Presentation Transcript
STRATEGIC MANAGEMENT UNIT-2 TOPIC- ORGANIZATIONAL APPRAISAL
ORGANIZATIONAL CAPABILITY FACTORS Are the strategic strengths and weaknesses exiting in different functional areas within an organization, which are of crucial importance to strategy formulation and implementation. Capability factors are described in the 6 functional areas of finance, marketing, operations, personnel, information and general management.
FINANCIAL CAPABILITY Factors relate to the availability, usage and management of funds and all allied aspects that have a bearing on an organization s capacity and ability to implement its strategies. Imp. factors which influence fin. capability of an org. are Factors related to sources of funds Factors related to usage of funds Factors related to management of funds
MARKETING CAPABILITY Factors relate to the pricing, promotion and distribution of products or services and all the allied aspects that have a bearing on an org. s capacity and ability to implement its strategy. Important factors that influence it Product related factors Price related factors Place related factors Promotion related factors Integrative and systematic factors
OPERATIONAL CAPABILITY Factors relate to the production of products or services, use of material resources and all allied aspects that have a bearing on org. s capacity and ability to implement its strategies. Important factors Factors related to the operations and control system Factors related to production system Factors related to the R&D system
PERSONNEL CAPABILITY Factors relate to the existence and use of HR and skills, all allied aspects that have a bearing on an org. s capacity and ability to implement strategies. Important factors Factors related to organizational and employee characteristics Factors related to the personnel system Factors related to industrial relations
INFORMATION MANAGEMENT CAPABILITY Factors relate to the design and mgt. of the flow of information from outside into and within the org. for the purpose of decision making and all allied aspects that have a bearing on an organization s capacity and ability to implement its strategies. Important factors are Acquisition and retention of info. Processing and synthesis of info. Retrieval and usage of info. Transmission and dissemination Integrative, systematic and supportive factors
GENERAL MANAGEMENT CAPABILITY Relates to the integration, coordination, and direction of the functional capabilities towards common goals and all allied aspects that have a bearing on an organization s capacity and ability to implement its strategies. Important factors are Factors related to general mgt. system Factors related to general managers Factors related to external relationships Factors related to organizational climate
CONSIDERATIONS IN ORGANIZATIONAL APPRAISAL The purpose of organizational appraisal also known as internal appraisal, internal analysis, organizational analysis, company analysis etc. is to determine the organizational capability in terms of strengths and weaknesses that lie in the different functional areas.
Factors affecting Organizational Appraisal The The strategists organization The internal environment
