Structural Environmental Appraisal

Structural Environmental appraisal -
Learning objectives
• Explain the manner in which strategic and competitive
advantage is developed
• Describe and give examples of the organisational
capability factors
• Discuss the process of conducting environmental
appraisal – ETOP
• Review the major methods and techniques used for
organisational appraisal
• Prepare Strategic Advantages Profile (SAP) for an
organisation
© Azhar Kazmi & Adela Kazmi, 2015 1

Dynamics of Internal
Environment
• The resources, behaviour, strengths and weaknesses, synergistic
effects and competencies of an organisation determine the nature of
its internal environment.
• An organisation uses different types of resources and exhibits a
certain type of behaviour. The interplay of these different resources
along with the prevalent behaviour produces synergy or dysergy
(sometimes, called antergy) within an organisation, which leads to the
development of strengths or weaknesses over a period of time.
• Some of these strengths make an organisation especially competent in
a particular area of its activity causing it to develop competencies.
• Organisational capability rests on an organisation's capacity and the
ability to use its competencies to excel in a particular field thereby
giving it strategic advantage.
Framework for the Development of
Strategic Advantage by an
Organisation
STRATEGIC ADVANTAGE
ORGANISATIONAL
CAPABILITY
COMPETENCIES
SYNERGISTIC EFFECTS
STRENGTHS AND
WEAKNESSES
ORGANISATIONAL ORGANISATIONAL
RESOURCES BEHAVIOUR

Organisational Resources
• A firm is a bundle of resources, tangible and intangible that include all
assets, capabilities, organisational processes, information, knowledge, and
the like, according to Barney (1991).
• They are classified as physical, human and organisational resources.
• The physical resources are the technology, plant and equipment,
geographic location, access to raw materials, etc.
• The human resources are the training, experience, judgement, intelligence,
relationships, etc. present in an organisation.
• The resource-based theory of strategic management clearly focuses on the
internal environment of the firm and holds that the firms possess resources
that are valuable and rare when efficiently utilized that enable them to
achieve strategic advantage eventually.
J. B. Barney, "Firm Resources and Sustained Competitive Advantage," in Journal of Management 17, no 1 (1991): 99 – 120.

Organisational Behaviour
• Organisational behaviour is the manifestation of the various forces and
influences operating in the internal environment of an organisation that
create the ability of, or erect constraints to, the usage of resources.
• Organisational behaviour is unique in the sense that it leads to the
development of a special identity and character of an organisation.
• Some of the important forces and influences that affect organisational
behaviour are:
– the quality of leadership,
– management philosophy,
– shared values and culture,
– quality of work environment and organisational climate,
– organisational politics,
– use of power, and such other factors.

Strengths and Weaknesses
• Organisational resources and behaviour do not exist in isolation. They
combine in a complex fashion to create strengths and weaknesses within
the internal environment of an organisation.
• Strength is an inherent capability which an organisation can use to gain

strategic advantage.
• A weakness is an inherent limitation or constraint which creates a strategic

disadvantage for an organisation.
• Strengths and weaknesses do not exist in isolation but combine within a

functional area, and also across different functional areas, to create
synergistic effects.

Synergistic Effects
• A situation where attributes do not add mathematically but combine to

produce an enhanced or a reduced impact is known as the synergistic
effect.
• Within an organisation, within a functional area, say of marketing, the
synergistic effect may occur when the product, pricing, distribution, and
promotion aspects support each other, resulting in a high level of
marketing synergy. At a higher level, the marketing and production areas
may support each other leading to operating synergy.
• In this manner, synergistic effects are an important determinant of the
quality and type of the internal environment existing within an organisation
and may lead to the development of competencies.

Competencies, Core Competencies
and Distinctive Competencies
• Competencies are special qualities possessed by an organisation that make
them withstand pressures of competition in the marketplace.
• Core competence is capability to use competencies exceedingly well.
• Distinctive competence is a specific ability possessed by a particular
organisation exclusively or relatively in large measure.
• Organisations achieve strategic success by building distinctive
competencies around a critical success factor for example a superior
product quality, say, a two-wheeler, which is more fuel efficient than its
competitor products or creation of a marketing niche by supplying highly
specialised products to a particular market segment or differential
advantage based on superior research and development skills of an
organisation, not possessed by its competitors.

Examples of Distinctive
Competitiveness
• A few examples of distinctive competencies are given below.
– Superior product quality on a particular attribute, say, a two-wheeler, which is more fuel
efficient than its competitor products.
– Creation of a marketing niche by supplying highly specialised products to a particular
market segment.
– Differential advantage based on superior research and development skills of an
organisation, not possessed by its competitors.
– Access to a low-cost financial source like equity shareholders, willing to invest in an
organisation, not available to its competitors.

Organisational Capability
• Organisational capability is the inherent capacity or potential of an

organisation to use its strengths and overcome its weaknesses in order to
exploit opportunities and face threats in its external environment.
• Strategists are primarily interested in organisational capability because of

two reasons.
– First, they wish to know what capacity exists within the organisation to exploit
opportunities or face threats in its environment.
– Secondly, they are interested in knowing what potential should be developed within the
organisation so that opportunities could be exploited and threats could be faced in future.

Strategic and Competitive
Advantage
• Strategic advantages are the outcomes of organisational capabilities and
activities leading to rewards in terms of financial parameters such as profit
or shareholder value and/or non-financial parameters such as market share
or reputation.
• Competitive advantage is a special case of strategic advantage where there
is one or more identified rivals against whom the rewards or penalties
could be measured. So, outperforming rivals in profitability or market
standing could be a competitive advantage for an organisation.
• Competitive advantage is relative rather than absolute and it is to be
measured and compared with respect to other rivals in an industry.

Organisational Capability
Factors
• Organisational capability factors (or simply, capability factors) are the
strategic strengths and weaknesses existing in different functional areas
within an organisation which are of crucial importance to strategy
formulation and implementation.
• Other term synonymous to organisational capability factors are: strategic
factors, strategic advantage factors, corporate competence factors, etc.
• Different types of capability factors exist within the internal environment
of an organisation. There are six largely accepted & commonly understood
functional areas: finance, marketing, operations, personnel, information,
and general management.

Financial Capability
The factors which influence the financial capability of an organisation:
• Factors related to sources of funds Capital structure, procurement of
capital, controllership, financing pattern, working capital availability,
borrowings, capital and credit availability, reserves and surplus, and
relationship with lenders, banks and financial institutions.
• Factors related to usage of funds Capital investment, fixed asset

acquisition, current assets, loans and advances, dividend distribution, and
relationship with shareholders.
• Factors related to management of funds Financial, accounting and

budgeting systems; management control system, state of financial health,
cash, inflation, credit, return and risk management; cost reduction and
control; and tax planning and advantages.
Typical Strengths that Support
Financial Capability
•Access to financial resources
•Amicable relationship with financial institutions
•High level of credit-worthiness
•Efficient capital budgeting system
•Low cost of capital as compared to competitors
•High level of shareholder's confidence
•Effective management control system
•Tax benefits due to various government policies

Marketing Capability
The factors which influence the marketing capability of an organisation:
• Product related factors Variety, differentiation, mix quality, positioning,
packaging etc.
• Price-related factors Pricing objectives, policies, changes, protection,
advantages, etc.
• Place-related factors Distribution, transportation and logistics, marketing
channels, marketing intermediaries, etc.
• Promotion-related factors Promotional tools, sales promotion, advertising
public relations, etc.
• Integrative and systemic factors Marketing mix, market standing, company
image, marketing organisation, marketing system, marketing management
information system, etc.

Marketing Capability
• Wide variety of products
• Better quality of products
• Sharply-focussed positioning
• Low prices as compared to those of similar products in the market.
• Price protection due to government policy
• High quality customer service
• Effective distribution system
• Effective sales promotion
• High-profile advertising
• Favourable company and product image.
• Effective marketing management information system

Operations Capability
The factors which influence operations capability of an organisation:
• Factors related to the production system Capacity, location, layout,
product or service design, work systems, degree of automation, extent of
vertical integration, etc.
• Factors related to the operations and control system Aggregate

production planning, material supply; inventory, cost and quality control;
maintenance systems and procedures, etc.
• 3. Factors related to the R & D system Personnel, facilities, product

development, patent rights, level of technology used, technical
collaboration and support, etc.

Operations Capability
• High level of capacity utilisation
• Favourable plant location
• High degree of vertical integration
• Reliable sources of supply
• Effective control of operational costs
• Existence of good inventory control system
• Availability of high calibre R & D personnel
• Technical collaboration with reputed firms abroad

Personnel Capability
The factors which influence the personnel capability of an organisation:
• Factors related to the personnel system Systems for manpower planning,
selection, development, compensation, communication, and appraisal;
position of the personnel department within the organisation, procedures
and standards, etc.
• Factors related to organisational and employees characteristics Corporate
image, quality of managers, staff and workers; perception about and image
of the organisation as an employer, availability of developmental
opportunities for employees, working conditions, etc.
• Factors related to industrial relations Union-management relationship,
collective bargaining, safety, welfare and security; employee satisfaction
and morale, etc.

Personnel Capability
• Genuine concern for human resources management
and development
• Efficient and effective personnel systems
• The organisation perceived as a fair and model employer
• Excellent training opportunities and facilities
• Congenial working environment
• Highly satisfied and motivated workforce
• High level of organisational loyalty
• Low level of absenteeism
• Safe and salutary working conditions

Information Management Capability
The factors which influence the information capability of an organisation are:
• Factors related to acquisition and retention of information Sources, quantity,

quality & timeliness of information, retention capacity & security of information.
• Factors related to processing and synthesis of information Database management,
systems, software capability &ability to synthesise information.
• Factors related to retrieval and usage of information Availability and
appropriateness of formats and capacity to assimilate and use information.
• Factors related to transmission and dissemination Speed, scope, width, and depth
of coverage of information, and willingness to accept information.
• Integrative, systemic and supportive factors Availability of IT infrastructure, its
relevance & compatibility to organisational needs, up gradation of facilities,
willingness to invest in state-of-the-art systems, availability of computer
professionals, and top management support.

Information Management Capability
• Ease and convenience of access to information sources
• Widespread use of computerised information system
• Availability and operability of high-tech equipment
• Positive attitude to sharing and disseminating
information
• Wide coverage and networking of computer systems
• Presence of foolproof information security systems
• Presence of buyers and suppliers conversant with IT
applications
• Top management understanding of, and support to, IT
and its application within organisation
General Management Capability
The factors which influence the general management capability are:
• Factors related to the general management system Strategic management system,
intent, formulation and implementation machinery, evaluation system, management
information, corporate planning, incentives, etc.
• Factors related to general managers Orientation, risk-propensity, values, norms,
personal goals, competence, capacity for work, track record, etc.
• Factors related to external relationships Influence on and rapport with the
government, regulatory agencies and financial institutions; public relations;
commitment to sustainability, consciousness of social responsibility; zeal for
philanthropy, public image as corporate citizen, etc.
• Factors related to organisational climate Organisational culture, use of power,
political processes, vested interests; introduction, acceptance and management of
change; nature of organisational structure and controls, etc .

General Management Capability
• Effective system for corporate planning
• Control, reward and incentive system for top managers geared to
the achievement of objectives
• Entrepreneurial orientation and high propensity for risk-taking
• Good rapport with the government and bureaucracy
• Top management conscious of sustainability impact of decisions
• Favourable corporate image
• Commonly being perceived as a good organisation to work for
• Development-oriented organisational culture
• Political processes used for consensus-building in organisational
interest.
• Effective management of organisational change

Considerations in
Organisational Appraisal
• The purpose of organisational appraisal (also referred to as internal
appraisal, internal analysis, internal audit, company or organisational
analysis) is to determine the organisational capability in terms of strengths
and weaknesses that lie in the different functional areas.
• In organisational appraisal, the various forces and influences operating

within the internal environment of an organisation have to be analysed.
• The various considerations involved in organisational appraisal relate to the

factors that affect appraisal, the approaches that can be adopted to appraise
them, and the sources of information available to perform the appraisal.

Factors Affecting Organisational
Appraisal
• The factors that affect organisational appraisal relate to the strategists,
the organisation, and to the internal environment. To understand how
these factors affect organisational appraisal, consider a few situations.
– The ability of the strategists to comprehend complexity determines how well the
different forces and influences, operating within the internal environment, are
analysed.
– The size of the organisation affects the quality of appraisal. Larger organisations
are usually more difficult to appraise than smaller ones.
– If the internal environment of an organisation is vitiated owing to opposing
political forces and power games, the quality of appraisal is likely to suffer. A
cohesive management team, on the other hand, is more likely to appraise the
organisation better.

Approaches to Organisational
Appraisal
• The approaches adopted for preparing organisational appraisal may
range from highly systematic to an ad hoc one.
– A systematic approach is adopted as a proactive measure to appraise the
organisation and is used when the strategists opt for formal strategic planning
systems.
– An ad hoc approach is generally used as a reactive measure in response to a
crisis or an unusual development. For instance, in smaller organisations which
operate under the entrepreneurial mode, the chief executive may do the
appraisal by herself without the aid of formal systems or by conducting ad hoc
studies.
• Overall, appraisal of organisation is an essential prerequisite to
strategy formulation.

Sources of Information for
Organisational Appraisal
• The strategists need to tap different types of information sources for
organisational appraisal. These sources may be verbal as well as written.
They may also be internal as well as external sources. The assessment of
organisational capability may rely on employees' opinion, company files
and documents, financial statements, the management information system,
and other internal sources.
• For comparative appraisal with similar organisations in the industry and
across industries, it may be necessary to have access to external sources of
information like company reports, magazines and journals. For systematic,
as well as ad hoc studies help may be sought from consultants. In sum, we
could say that the several sources of information used for environmental
appraisal could also be used for organisational appraisal.

Methods and Techniques used
for Organisational Appraisal
The methods and techniques could be classified in three parts as below:
Internal analysis Comparative analysis
1. VRIO framework 1. Historical analysis
2. Value chain analysis 2. Industry norms
3. Quantitative analysis 3. Benchmarking
4. i. Financial analysis 4. Qualitative analysis
ii. Non-financial analysis
Comprehensive analysis
1. Key factor rating
2. Business intelligence systems
3. Balanced scorecard

VRIO framework
• Valuable: The organisational capabilities possessed by the firm that help it
to generate revenues by capitalising on opportunities and / or to reduce
costs by neutralising threats.
• Rare: The organisational capabilities that are possessed by the firm
exclusively or just by a few other firms in the industry.
• Inimitable: The organisational capabilities possessed by the firm that are
impossible, very difficult or not worthwhile to duplicate or substituted by
the competitors.
• Organised for usage: The organisational capabilities possessed by the firm
that could be used through appropriate organisational structure, business
processes, control systems, and reward systems that are present in the firm.

Value Chain Analysis- Primary activities
• A value chain is a set of interlinked value-creating activities performed by
an organisation. Porter (1985) divided the value chain of a manufacturing
organisation into primary and support activities. Primary activities are
directly related to the flow of product to the customer and include five sub-
activities as:
– Inbound logistics: All activities that an organisation uses for receiving, storing, and
transporting inputs going into the production process.
– Operations: All activities required for transformation of raw materials to finished
products.
– Outbound logistics: All activities that an organisation uses for receiving, storing, and
transporting outputs going out of the production process.
– Marketing and sales: All activities that an organisation uses to market and sell products to
customers.
– Service: All activities that an organisation uses for enhancing and maintaining a product’s
value.
M. E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, (New York: The ree Press, 1985).

Value Chain Analysis - Support
activities
Support activities are provided to sustain the primary activities:
– Firm infrastructure: All activities that an organisation uses for ascertaining external
opportunities and threats, identifying strengths and weaknesses, and generally managing
the organisation for achieving its objectives.
– Human resource management: All activities that an organisation uses for managing
human resources.
– Technology development: All activities that an organisation uses for creating, developing,
and improving products and services.
– Procurement: All activities that an organisation uses for procuring inputs needed to
produce products or provide services .
M. E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, (New York: The ree Press, 1985).

Quantitative Analysis
• Financial ratio analysis assesses the liquidity, profitability, leverage, and
activity aspects of any organisation. It can be used for analysing strengths
and weaknesses and provides valuable data that can be used in
organisational appraisal.
• Certain other newer and improved techniques have also been devised to
offset the limitations inherent in the older ones like the economic value-
added (EVA) analysis defined as the system of corporate management that
defines profitability in terms of the returns on capital above the cost of
servicing the capital employed.
• The second improved technique of activity-based cost (ABC) accounting
identifies the major activities in the value chain within a firm and keeps a
tab on the costs within each activity.
EVA is a popular technique devised by Stern Stewart & Company.

Non-Financial Quantitative
Analysis
• Non-financial quantitative analysis measures are: employee turnover,
absenteeism, market ranking, rate of advertising recall, total cycle time of
production, inventory units used per period, service call rate, number of
patents registered per period, etc.
• The obvious advantage of financial analysis is that all numbers can be
expressed in terms of a common monetary unit such as rupees, pounds or
dollars. But not everything that goes on in an organisation can be best
expressed in monetary units. It might not even be desirable to do so. Many
of the operational parameters are best expressed in physical terms.
Quantification of intangibles such as goodwill or employee morale may be
possible but it is not desirable to do so in monetary terms. Here the non-
financial quantitative analysis can help an organisation in appraisal

Qualitative Analysis
• An organisational appraisal can be based primarily on quantitative analysis
since it is possible to measure and compare on a numerical or financial
basis. Yet, as most strategists are aware, quantification has its limitations.
The quantitative analysis has to be tempered with qualitative analysis.
Such an analysis is based on informed opinion, judgement, intuition, or
hunch. Conversely, quantitative analysis could be used to support and
reinforce the qualitative assessment.
• Qualitative analysis can best be used to express the tenor of corporate
culture, ability to absorb and assimilate knowledge or the level of morale
among employees. A systematic qualitative analysis may use the survey
approach to finding, for instance, the status of organisational climate.
These factors do matter so far as the strengths and weaknesses of an
organisation are concerned.

Comparative Analysis
Comparative analysis forms the cornerstone of the assessment of the
strengths and weaknesses of an organisation. It can be done through:
• Historical analysis: is a good measure of good and bad performance of an

organisation with respect to its own past performances.
• Industry norms: The industry to which a business belongs is the obvious
choice for comparison with regard to a wide range of parameters.
• Benchmarking: It is a reference point for taking measures against and
aimed at finding the best practices within and outside the industry to which
an organisation belongs.

Comprehensive Analysis
A comprehensive method, which can be used in association with
financial analysis, is that of key factor rating.
For financial capability factors:
– Questions related to sources of funds
– Question related to usage of funds
– Questions related to management of funds
For marketing capability factors:

– Questions related to products or services
– Questions related to price
– Questions related to promotion
– Questions related to integrative and systemic factors

For operations capability factors:

– Questions related to the production system
– Questions related to operations and control
– Questions related to the R & D system
For personnel capability factors

– Questions related to the personnel system
– Questions related to organisational and employee characteristics
– Questions related to industrial relations

For information management capability factors
– Questions related to acquisition and retention of information
– Questions related to processing and synthesis of information
– Questions related to retrieval and usage of information
– Questions related to transmission and dissemination
– Questions related to integrative, systemic, and supportive factors
For general management capability factors

– Questions related to general management system
– Questions related to general managers
– Questions related to external relationships
– Questions related to organisational climate

Comprehensive Analysis –
Business Intelligence Systems
• BIS - a broad category of applications and technologies for gathering,
storing, analyzing, and providing access to data to help enterprise users
make better business decisions.
 BI can help an organisation in strategic and operational decision-making. A Gartner
survey ranked the strategic use of BI in the following order:
– Corporate performance management
– Optimising customer relations, monitoring business activity, and traditional decision
support
– Packaged stand-alone BI applications for specific operations or strategies
– Management reporting of business intelligence
C. Willen, “Airborne Opportunities,” Intelligent Enterprise 5, no 2, (January 14, 2002): 11-12.

Gartner Group Report, September 1996.

Balanced Scorecard
Balanced scorecard is considered as a set of measures that gives top
managers a fast but comprehensive view of the business. It includes
financial measures that tell the results of actions already taken. And it
complements the financial measures on customer satisfaction, internal
processes, and the organization's innovation and improvement activities –
operational measures that are the drivers of future financial performance.
The balanced scorecard identifies four key performance measures:
– Financial perspective "How do we look at shareholders?"
– Customer perspective "How do customers see us?"
– Internal business perspective "What must we excel at?"
– Learning and growth perspective "Can we continue to improve and create value?"

Structuring Organisational
Appraisal
• Just as environmental appraisal is structured through an environmental threat and
opportunity profile , organisational appraisal can also be structured through various
techniques.
• Glueck proposes preparation of the strategic advantage profile (SAP) where the
results of organisational appraisal are presented in a summarised form.
• Another approach, suggested by Rowe et al, is to prepare a company capability
profile as a means for assessing a company's strengths and weakness in dealing with
the opportunities an threats in the external environment.
• We propose a similar approach here of making an organisational capability profile
which can be summarised in the form of a strategic advantage profile.
• The SAP is then matched with the environmental threats and opportunity profile,
prepared while structuring the environmental appraisal, in order to look for strategic
alternatives and exercise a strategic choice.
W.F. Glueck and L.R. Jauch, Business Policy and Strategic Management 4th ed. (New York: McGraw-Hill, 1984):.174-176.
A.J. Rowe, R.O. Mason and K. Dickel, Strategic Management and Business Policy: A Methodological Approach, (Reading, Mass: Addison-Wesley 1982):.17-
21.

Strategic Advantage Profile (SAP)
for a Bicycle Company/ ETOP
______________________________________________________________________________
Capability factor Nature of impact Competitive strengths or weaknesses
---------------------------------------------------------------------------------------------------------------------
1. Finance ↓ High cost of capital; reserves and surplus
position unsatisfactory
--------------------------------------------------------------------------------------------------------------------
2. Marketing → Fierce competition in industry;

company's position secure at present
---------------------------------------------------------------------------------------------------------------------
3. Operations ↑ Plant and machinery in excellent condition;

captive sources for parts and components
available
---------------------------------------------------------------------------------------------------------------------
4. Personnel → Quality of managers and workers

comparable with that in competitor companies
---------------------------------------------------------------------------------------------------------------------
5. Information ↑ Advanced management information system
in place; most traditional functions
such as payroll and accounting computerised;
company website has limited scope for e-commerce
---------------------------------------------------------------------------------------------------------------------
6. General management ↑ High quality and experienced top management
generally adopts a proactive stance with regard
to decision-making
______________________________________________________________________________
Note: Up arrow indicates strength, down arrow indicates weakness while horizontal arrow indicates a neutral 43
position © Azhar Kazmi & Adela Kazmi, 2015

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Structural Environmental appraisal -

© Azhar Kazmi & Adela Kazmi, 2015 1

© Azhar Kazmi & Adela Kazmi, 2015 3

© Azhar Kazmi & Adela Kazmi, 2015 4

© Azhar Kazmi & Adela Kazmi, 2015 5

• Strength is an inherent capability which an organisation can use to gain

• A weakness is an inherent limitation or constraint which creates a strategic

• Strengths and weaknesses do not exist in isolation but combine within a

© Azhar Kazmi & Adela Kazmi, 2015 6

• A situation where attributes do not add mathematically but combine to

© Azhar Kazmi & Adela Kazmi, 2015 7

© Azhar Kazmi & Adela Kazmi, 2015 8

© Azhar Kazmi & Adela Kazmi, 2015 9

• Organisational capability is the inherent capacity or potential of an

• Strategists are primarily interested in organisational capability because of

© Azhar Kazmi & Adela Kazmi, 2015 10

© Azhar Kazmi & Adela Kazmi, 2015 11

© Azhar Kazmi & Adela Kazmi, 2015 12

• Factors related to usage of funds Capital investment, fixed asset

• Factors related to management of funds Financial, accounting and

© Azhar Kazmi & Adela Kazmi, 2015 14

© Azhar Kazmi & Adela Kazmi, 2015 15

© Azhar Kazmi & Adela Kazmi, 2015 16

• Factors related to the operations and control system Aggregate

• 3. Factors related to the R & D system Personnel, facilities, product

© Azhar Kazmi & Adela Kazmi, 2015 17

© Azhar Kazmi & Adela Kazmi, 2015 18

© Azhar Kazmi & Adela Kazmi, 2015 19

© Azhar Kazmi & Adela Kazmi, 2015 20

• Factors related to acquisition and retention of information Sources, quantity,

© Azhar Kazmi & Adela Kazmi, 2015 21

© Azhar Kazmi & Adela Kazmi, 2015 23

© Azhar Kazmi & Adela Kazmi, 2015 24

• In organisational appraisal, the various forces and influences operating

• The various considerations involved in organisational appraisal relate to the

© Azhar Kazmi & Adela Kazmi, 2015 25

© Azhar Kazmi & Adela Kazmi, 2015 26

© Azhar Kazmi & Adela Kazmi, 2015 27

© Azhar Kazmi & Adela Kazmi, 2015 28

© Azhar Kazmi & Adela Kazmi, 2015 29

© Azhar Kazmi & Adela Kazmi, 2015 30

© Azhar Kazmi & Adela Kazmi, 2015 31

© Azhar Kazmi & Adela Kazmi, 2015 32

© Azhar Kazmi & Adela Kazmi, 2015 33

© Azhar Kazmi & Adela Kazmi, 2015 34

© Azhar Kazmi & Adela Kazmi, 2015 35

• Historical analysis: is a good measure of good and bad performance of an

© Azhar Kazmi & Adela Kazmi, 2015 36

For marketing capability factors:

© Azhar Kazmi & Adela Kazmi, 2015 37

For operations capability factors:

For personnel capability factors

© Azhar Kazmi & Adela Kazmi, 2015 38

For general management capability factors

© Azhar Kazmi & Adela Kazmi, 2015 39

C. Willen, “Airborne Opportunities,” Intelligent Enterprise 5, no 2, (January 14, 2002): 11-12.

© Azhar Kazmi & Adela Kazmi, 2015 40

© Azhar Kazmi & Adela Kazmi, 2015 41

© Azhar Kazmi & Adela Kazmi, 2015 42

2. Marketing → Fierce competition in industry;

3. Operations ↑ Plant and machinery in excellent condition;

4. Personnel → Quality of managers and workers

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