This document discusses organizational analysis and value chain analysis. It provides an overview of several models for organizational analysis, including the strategic triangle model, SWOT model, rational model, natural system model, and sociotechnical model. It then discusses value chain analysis and its components. Value chain analysis examines activities involved in production and marketing to determine strengths and weaknesses. The document outlines the key components of value chain analysis including organizational structure, culture, finance, marketing, operations, human resources, and information systems.

2. TEAM MEMBERS:
 SHEREEN SHAHANA
 SHALI FRANKLIN
 SANDHYA V S
 SHEBIN THOMAS

3. Organizational analysis
 Organizational analysis is the process of evaluating
systematically an organization's capabilities which can
give it a competitive advantage in the market.
 Also known as internal analysis, company analysis.

4. Organizational Analysis Models
Strategic Triangle Model
to determine the efficiency and effectiveness of an
organization.
SWOT model
to evaluate the strengths, weaknesses, opportunities and
threats in a business.
Rational Model
organizations should be as mechanistic and efficient as
possible.

5. Natural System Model
opposite of the rational model in that it focuses on the
activities that may negatively impact the organization
and therefore aims at maintaining an equilibrium in
order to meet its goals.
Sociotechnical Model
also known as Sociotechnical Systems (STS).
to complex organizational work design that recognizes
the interaction between people and technology in
workplaces.

6. Cognitive Model
Behavior, cognitive, and other personal factors as well as
environmental events, operate as interacting
determinants that influence each other bidirectionally.

7. VALUE CHAIN ANALYSIS
Provides framework for organizational analysis
Value chain consist of a linked set of value creating
activities in producing and marketing a
product/service
Value chain is divided into
 primary activities
Support activities

8. STEPS IN VALUE CHAIN ANALYSIS
 CORPORATE VALUE CHAIN ANALYSIS CONSIST OF
THREE STEPS:
1. Examine each product line’s value chain in terms of
various activities involved in production. Among those
activities, which could be considered a strength or
weakness
2. Examine the linkages with each product line’s value
chain. Linkages are connections between and support
activities
3. Examine the potential synergies among value chains of
different product lines so that economy of could be
attained.

9. COMPONENTS OF VALUE CHAIN
 The components of value chain can be analyzed by
studying
1. Organization structure
2. Culture and various functions
3. Finance
4. Marketing
5. Operations
6. Human resources
7. Information systems

10. 1.ORGANISATION STRUCTURE:
 The following types of organization are widely found
in modern organizations:
a) Simple structure
b) Functional structure
c) Divisional structure
d) Strategic business units
e) Conglomerate structure
Structure should support strategy and it should facilitate
Implementation of strategy if the present structure is
found to be inadequate.

11. 2.Organizational culture
 Refers to the shared values, shared beliefs and shared
expectations of employees.
 Culture is passed from one generation to another of
employees.
 Corporate culture influences the behavior of people in the
organization.
 A strong culture promotes survival and serves as
competitive advantage.
 The extent to which the culture is deep and intense, the
employees tend to show consistent behavior.
 it is imperative that organization culture is compatible
with a new strategy so as to be an internal strength.

12. 3.Strategic finance issues:
 It includes cash flow, financial leverage and capital
budgeting, which could be source of strength of firm.
 Some of significant factors which decide the financial
capability are as follows:
1. Factors related to sources of funds:
 capital structure
 Reserves and surplus
 Relationship with bankers
 Working capital availability
 Financing pattern

13. 2. Factors related to usage of funds
 Fixed asset
 Current asset
 Loans and advances
 Rapport with shareholders
 Dividend distribution
3.Factors related to the management
 Tax planning measures
 Cost reduction measures
 Financial accounting
 Risk/return management
 Budgeting system

14.  Some of the techniques that can be adopted for
analyzing the strength and weakness in finance area:
Liquidity ratio
Profitability ratio
Leverage ratio
Cash flow analysis
Payback and IRR analysis
Breakeven analysis
Earning to sales
Earning per share

15. 4.STRATEGIC MARKETING ISSUES
 Marketing is a crucial function as it links the firm with
customer and competitors.
 Some of the marketing issues relates to market position,
marketing mix and product life cycle stages.
 Marketing capability factors with respect to product, price,
place and promotion have direct impact on strategy
implementation:
 Product related factors:
i. Variety
ii. Differentiation
iii. Product positioning
iv. packaging

16.  Price related factors:
i. Pricing policies
ii. Pricing methods
iii. Government policies
 Place related factors:
i. Logistics
ii. Distribution
iii. Market intermediaries

17.  Promotion related factors:
i. Promotion budget
ii. Advertising
iii. Public relations
iv. Sales promotion
 System related factors:
i. Marketing intelligence
ii. Marketing information system
iii. Customer relationship management

18.  Techniques are used for analyzing the strength and
weaknesses in marketing:
Market share analysis
Marketing audit
Brand monitoring surveys
Dealer and consumer panels
Analysis of profit volume relationship

19. 5.STRATEGIC OPERATIONS ISSUES:
 The crucial issues involved in operations management are
manufacturing process, mass customization and R&D mix
 Some of the operations capability factors are as follows:
1.Factors related to production system:
 Location
 Layout
 Work system
 Capacity
 Extent of automation
 Vertical integration

20.  Factors related to operations and control system:
 Aggregated production planning
 Material supply
 Inventory
 Capacity utilization
 Quality control
 Maintenance systems
 Factors related to R&S systems:
 Patents
 Technology collaboration
 Technology transfer
 Technology agreements
 facilities

21.  Techniques used for assessing the strengths and
weaknesses of operations and management:
Capacity utilization analysis
Inventory analysis
Cost of production analysis
Analysis of patent generated
New products commercialization record
Comparison of investments in new product launch.

22. Strategic Human Resource Issues
 Strategic Human resource issues revolve around
labour cost. The use of part time employees, contract
workers, autonomous work teams and cross functional
work teams provide options and contribute to
competitive advantage.
 Human resource capability factors are built around
personnel systems, employee characteristics and
cordial industrial relations.

23. Factors related to personnel
systems:
 Manpower Planning System
 Selection and Development System
 Compensation and
 Appraisal System

24. Factors related to employee
Characteristics
 Quality and skill of Management
 Image of Organization as employer
 Working conditions
 Leadership

25. Factors related to Industrial
relations
 Union-Management Relationship
 Health, Welfare, Safety, Stress, Discipline
 Collective Bargaining

26. Strategic Information Management
Issues
 A firms Information System Could be a strength or
weakness depending upon its usage in corporate
performance.
 Successful implementation of strategy warrants
information management capability in aspects like
acquisition, retention, transmission, dissemination,
processing and retrieval of information.

27. Factors related to acquisition and
retention of information:
 Source
 Quantity
 Quality
 Retention
 Security of Information

28. Factors related to processing and
synthesis of Information
 Database Management
 Software Development
 Developing Suitable System
Factors related to retrieval and usage of
Information
 Appropriation of formats
 Capacity to assimilate information

29. Factors related to dissemination
and transmission:
 Speed
 Scope
 Depth
 Width
 Coverage of Information

30. Integrative, systematic and
supportive factors:
 Availability of personnel
 I.T Infrastructure
 Compatibility to Organizational needs
 Top Management support etc

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