STRUCTURING

ORGANISATIONAL
APPRAISAL: Strategic
Advantage Profile
 Just as environmental appraisal is structured through
an environmental threat and opportunity profile,
organizational appraisal can also be structured
through various techniques.

Glueck proposes preparation of the Strategic

Structuring Advantage Profile (SAP) where the results of
Organisation organizational appraisal are presented in a
summarized form.
al Appraisal
SAP is 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.
 The organisational capability profile (OCP) is drawn in
the form of a chart which shows a summarised OCP.

The strategists are required to systematically assess the

Organisation various functional areas and subjectively assign values
al Capability to the different functional capability factors and sub-
factors along a scale ranging from values of - 5 to + 5.
Profile
After completion of the chart, the strategists are in a
position to assess the relative strengths and weaknesses
of an organisation in each of the six functional areas and
identify the gaps that need to be corrected or
opportunities that could be used.
 Organizational Capability
Profile (OCP)
An organizational capability profile describes the skills,
knowledge and resources that enable your company to provide
quality products or services to customers. The profile provides
useful background information for your marketing and corporate
communications.
 Financial Capability Profile
• Sources of funds
• Usage of funds
Organizational • Management of funds
Capability
Marketing Capability Profile
Profile (OCP)
• Product related
• Price related
• Promotion related
• Integrative & Systematic
Operations Capability Factor
(a) Production
system
(b) Operation & Control system
(c) R&D system
Personnel Capability Factor
(d) Personnel system
(e) Organization & employee characteristics
(f) Industrial Relations
General Management Capability
(g) General Management Systems
(h) External Relations
(i) Organization climate
 EXAMPLES OF ORGANIZATIONAL CAPABILITYPROFILE

Financial Capability
Bajaj - Cash Management
LIC
- Centralized payment, decentralized collection
Relianc - high investor confidence
e
Escorts - Amicable relation with FIS (world's top-ranked technology
• provider to the banking industry)

Marketing Capability
Hindustan Lever - Distribution Channel
IDBI/ICICI Bank - Wide variety of products
Tata - Company / Product
Image
Operations Capability
Lakshmi machine - absorb imported technology
works Balmer & - R&D - New specialty chemicals
Lawrie
Personnel Capability
Apollo tyres - Industrial relations
problem
General management capability
Malayalam Manaroma - largest selling newspaper
What is SAP?

• Strategic advantages are the outcomes of organizational capabilities.

• The strategic advantage profile is a tool for making a systematic evaluation of
the enterprises internal factors which are significant for the company in its
environment. The SAP shows the strengths and weakness of an organization in
different functional areas.
DISCUSSION