It results into financial benefits to the organizations in the form of increased profit even in the face of environmental threats. Offsetting Uncertainnity : By prescribing the future course of action. Clarity in Objectives & Directions: It is used for achieving those objectives, they focus on clarity of objectives. Increased Organizational Effectiveness: Its concept is that the organization is able to achieve its objectives within the given resources.
Personnel Satisfaction: If the decisions are systematized in the organization everyone knows how to proceed, how to contribute towards objectives this clarity brings satisfaction. 11. Distinguish between organization value chain and value systems. Value chain : The term value chain describes a way of looking at a business as a chain of activities that transform inputs into outputs that customers value, Value chain analysis (VCA) attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value. VCA takes a process point of view 12. How can an organization responds to environmental uncertainty, complexity and dynamism Mega Environment: Micro Environment: has an impact on the organization‟s current business Relevant Environment: primary business focuses of the organization Section B 1.How BCG growth share matrix and GE matrix business screen does are used to develop strategy? Explain BCG
2. Explain and illustrate strategic advantage profile. Why we should combine SAP and ETOP? The preparation of ETOP involves dividing the environment into different sectors and then analyzing the impact of each sector on the organization. A comprehensive ETOP requires subdividing each environmental sector into sub factors and then the impact of each sub factor on the organization is described in the form of a statement. 3. How critical success factor help in company SWOT analysis? Suggest ways to sustain them. A traditional approach to internal analysis: SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. Components: An opportunity is a major favorable situation in a firm‟s environment Industry Attractive ness High Medium Low A Winners E Winners F Profit producers B Winners F Avg Business G Losers C Question mark D Losers H Losers Strong Avg Weak Business Strength/ competitive position
A threat is a major unfavorable situation in a firm‟s environment A strength is a resource or capability controlled by or available to a firm that gives it an advantage relative to its competitors in meeting the needs of the customers it serves A weakness is a limitation or deficiency in one or more of a firm‟s resources or capabilities relative to its competitors that create a disadvantage in effectively meeting customer needs SWOT Analysis Diagram: 4. “Internal analysis of a firm must have a base of environmental” – Elaborate Environmental analysis is a part of Internal analysis ie SWOT analysis. While
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