1.Goals and Objectives

2. Goals Denote what an organization hopes to accomplish in a future period of time. (Financial and Non Financial) (Qualitative) Objectives Are the ends that state specifically how the goals shall be achieved (Concrete and specific, makes goals operational) (Quantitative) 3. Role of Objectives Provide the basis for Strategic Decision Making Provide the standards for Performance Appraisal 4. Characteristics of Objectives Should be understandableShould be concrete and specificShould be related to a time frameShould be measurable and controllableShould be challengingDifferent objectives should correlate with each otherShould be set within constraints 5. Objectives need to be set for 6. Market standing Innovation Productivity Physical and Financial Resources Profitability Manager performance and development Worker performance and attitude Public responsibility 7. Types of Objectives 8. Factors Considered for Objectives Setting The Forces in the Environment Realities of Enterprise Resources and Internal Power Relationships The Value system of the Top Executive Awareness by the Management 9. The Balance Scorecard Model The Model and Map 10. The approach for the Balance score card 11. A typical Strategy Map 12. The concepts of CSF and KPI 13. CSF 14. Organizational Appraisal 15. Framework for Development of Strategic Advantage 16. Organizational Capability factors 17. Organizational capability factors are the strategic strengths and weaknesses existing in different functional areas within an organization, which are of crucial importance to strategy formulation and implementation. 18. The Factors. 19. Financial Capability Factors 20. Source of Funds Financing (External Borrowing, Internal Financing), Capital Mix Decisions eg. Capital Structure, Procurement of Capital, working capital borrowings, reserves and surplus as sources of funds ; relationship with lenders, banks and financial institutions. Usage of Funds Investment or Asset Mix Decisions e.g. Capital Investment, Fixed asset acquisition, current assets, loans and advances, dividend decisions, relationship with shareholders Management of Funds Decisions related to systematic aspects of Financial Management e.g. Systems of Finance, accounting and budgeting, management control system; cash, credit and risk management; cost control and reduction; tax planning and advantages 21. Typical Strengths that support this capability 22. Marketing Capability Factors 23. ProductQuality, features, choice of models, brand names, packaging etc PricingDiscount, mode of payment, allowances, payment period, credit terms, etc PlaceChannels to be used, transportation, logistics and inventory storage management and coverage of markets etc. PromotionAdvertising, Personal Selling, Sales Promotions, Publicity Integrative and Systemic Factors Marketing Mix, Segmentation, targeting, positioning, market standing, company image, marketing organization, marketing system, marketing management information system etc. 24. Typical Strengths that support this capability 25. Operational Capability Factors 26. Production System Capacity, Location, Layout, product or service design, work systems, degree of automation, extent of vertical integration etc. Operational Planning and control Aggregate Production Planning, Materials supply; inventory, cost and quality management; and maintenance of plant and equipment. Research and Development Product Development, Personnel and facilities, level of technology used, technology transfer and absorption, technological collaboration and support etc. 27. Typical Strengths that support this capability 28. Personnel Capability Factors 29. Personnel System Manpower Planning, Selection, Development, Compensation, Communication and appraisal Organizational and employee characteristics Corporate image, Quality of Managers, Staff and workers, perception about the image of the organization as an employer, availability of development opportunities for employees, working conditions etc. Industrial Relations Union Management Relationships, Collective Bargaining, safety, welfare and security, employee satisfaction and Morale etc. 30. Typical Strengths that support this capability 31. Information Management Capability 32. Factors related to Acquisition and Retention of Information Sources, Quantity, Quality and Timeliness of Information, retention capacity and security of information Factors Related to Processing and Synthesis of Information Database Management, Computer Systems, Software Capability and the ability to synthesize information Factors Related to Retrieval and usage of Information Availability and appropriateness of Information formats and the capacity to assimilate and use information Factors related to Transmission and Dissemination Speed, scope, width and depth of coverage of information and with the willingness to accept information Integrative, Systemic and Supportive Factors Availability of IT infrastructure, its relevance and compatibility to organizational needs, upgradation of facilities, willingness to invest in state-of-the-art systems, availability of computer professionals and top management support 33. Typical Strengths that support this capability 34. General Management Capability 35. General Management Capability 36. Typical Strengths that support this capability 37. Methods and Techniques used for Organizational appraisal 38. Internal Analysis 39. VRIO Framework Valuable Rare Inimitable Organised for Usage 40. How Organizational Capabilities contribute to strengths and WeaknessesUsing the VRIO Framework 41. Value Chain Analysis 42. Value Chain Analysis Primary Activities Inbound logistics Operations Outbound Logistics Marketing and Sales Service Support Activities Firm Infrastructure Human Resource Management Technology Development Procurement 43. Porters Generic Value Chain 44. Quantitative Analysis Financial Analysis Non-Financial Quantitative Analysis 45. Financial Analysis Ratio Analysis Assesses Liquidity, Profitability, Leverage and activity aspects. Economic Value added (EVA) Analysis To determine wealth of a company : Defines profitability in terms of the returns on capital above the cost of servicing the capital employed.( PAT Cost of Capital) Activity based Costing (ABC) 46. Non Financial Analysis 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. 47. Comparative Analysis Historical Analysis Industry Norms Benchmarking 48. Types of Benchmarking Performance Benchmarking Process Benchmarking Strategic Benchmarking 49. To determine against whom one should compare Internal Benchmarking (Between units or departments of the same organization) Competitive Benchmarking (Direct comparison of ones performance against the best competitors) Functional Benchmarking (Comparison of processes or functions against non competitive organizations within the same sector or technological area) Generic Benchmarking ( Comparison of own processes against the best practices anywhere, in any type or organization) 50. Comprehensive Analysis Key Factor Rating Business Intelligence Systems Balance Scorecard 51. Key Factor Rating 52. Marketing Capability factors 53. Business Intelligence 54. Balance Scorecard Customer Perspective : How do customers see us? Internal Business Perspective : What must we excel at? Innovation and learning perspective : Can we continue to improve and create value? Financial Perspective : How do we look at shareholders? 55. The Models 56. Structuring Environmental Appraisal ETOP Model 57. Environment Threat and Opportunity Profile 58. Structuring Organizational AppraisalOrganizational Capability Profile (OCP) Strategic Advantage Profile (SAP) 59. Organizational Capability profile 60. Strategic Advantage Profile (SAP)