Wednesday, March 24, 2010

Concept of organization analysis

Concept of organization analysis
Organizational analysis systematically evaluates the strengths and weakness of an organization.Strength is something an organization does well relative to competitors.Weakness is something an organization does relative to competitors.
Business strategy capabilities on strengths and overcomes weaknesses.
Organizational analysis is based on the scanning of the internal environment of an organization.It analyses resources and competencies.It analyses operations of the organization in terms of production,marketing,finance,human resource and development.Unique resources and core competencies are identified to locate strategic advantage.It aims for synergistic effects.

Resources
Carbonation's of resources provide strengths and weakness.The available resources in an organization can be :
  • Human resources They consists of trained and experienced employees possessing competencies in term of special qualities.They have knowledge,skills,judgement,and adaptability.They have potential for development.They represent strategic resources.
  • Physical resources :They consists of physically facilities,plant and equipment,production capacity,technology and ownership of natural resources.Their location determine their usefulness.
  • Financial resources :They consist of capital cash,debtors,creditors and credit from financial institutions.
  • Intellectual resources :They are knowledge based.They are intangible resources such as brands,patents,software,goodwill,learning organizations.They are also known as intellectual capital.They are intangible resources.
Unique resources provide value strategic advantage.They provide strengths.They possess following characteristics.
  • Valuable :They provide value in the product to sustain strengths.They fulfill customer's needs better than competitors.
  • Rare:They are better than competitor's resources competitors do not possess them.They are scarce and in short supply.
  • Costly to imitate :They are difficult and costly for other to imitate.Competitors cannot easily copy or acquire them.Patents unique location,brand loyalty make resources imitable.
  • Non substitution :The unique resources have no substitutes.The organization possessing them is able to exploit them for us its strategic advantage.
Unique resources are critical success factors for the organization.

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