analyzing the internal environment
TRANSCRIPT
Analyzing The Internal Environment
Opening Case :State Bank Of India
PROFILE
Branches : 9,000 Foreign Offices : 69
Total number of Employees: 1,99,000 Assets : £ 63 billion
SBI On Its Capabilities
Financial Capability
Bank maintains a healthy liquidity position.
Funding profile is strong. Marketing Capability
Strong retail base and wide geographical reach.
Strong market position in housing loans. Operations Capability
High level of gross non- performing assets.
It has a clear technology strategy.
Personnel Capability
Overstaffing.
Understaffing.
Information Management Capability
SBI commissioned TCS to supply , customize and
implement the centralized core banking system.
General Management Capability
Performance indicators used by the SBI are capital
adequacy ratio, return on assets business per employee
and profit per employee.
Conclusion
These capabilities stand the organization in good stead when they compete for resources , customers and market share.
Internal Environment
Conditions, entities, events, and factors within an organization which influence its activities and choices, particularly the behavior of the employees. Factors that are frequently considered part of the internal environment include the organization's mission statement, leadership styles, and its organizational culture.
Dynamics Of Internal Environment• Diagram
Strategic Advantage
Organizational Capability
Competencies
Synergistic Effects
Strength &Weakness
Organizational Resources
Organizational Behavior
Organizational Resources
Organizational resources are a bundle of resources – tangible and intangible that include all assets, capabilities, organizational process, information, knowledge etc.
Classification Of Organizational Resources
Physical Resources:
The physical resources are the technology, plant and equipment, geographic location, access to raw material, etc.
Human Resources:
The human resources are the training, experiences, judgment, intelligence, relationship etc. present in an organization.
Organizational Resources The organizational resources are the formal system
and structure as well as information relations among groups.
Organizational Behavior
Organizational behavior is the manifestation of the various forces and influences operating in the internal environment of an organization that create the ability for or place constrains on, the usage of resources.
Competencies
Competencies are special qualities possessed by an organization that make them withstand the pressures of competition in the market place.
For Example :- It can relate to economic resource acquisition , product process efficiency , employee productivity or marketing products to consumers . Companies use these competencies to secure strong market share and develop a following of consumers through positive customer service interaction.
Effects
Companies can use core competencies to limit or prohibit the waste of economic resource . This helps companies create a better cost position in the economic market and offer lower priced goods and services to consumers . A cost advantage helps companies increase profits and long term sustainability.
Organizational Capability Organizational capability is the inherent
capability or potential of an organization to use its strengths and overcome its weaknesses in order to exploit the opportunities and face the threats in its external environment.
Organizational Capability Factors
Financial capabilityMarketing capabilityOperational capabilityPersonnel capabilityInformation capabilityGeneral management capability
Financial capability
Financial capability factors relate to the availability, usages and management of funds.
Factors Factors related to sources of funds Factors related to usage of funds Factors related to management of funds
Strengths
Access to financial resources Efficient capital budgeting system Low cost of capital as compared to
competitors
Marketing Capability
Marketing capability factors related to the pricing, promotion and distribution of products or services.
Factors Product related factors Price related factors Place related factor Promotion related factors
Strengths Wide variety of products Better quality of product High quality customer services Effective distribution system High profile advertisement
Operations capability
Operation capability factors related to the production of product or service.
Factors Factors related to the production system Factors related to the operations and control
system
Strengths
High level of capacity utilization Favorable plant location Effective control of operational cost
Personnel capability Personnel capability factors related to the
existence and use of human resources and skills. Strengths Efficient and effective personnel system Highly satisfied and motivated workforce Safe and salutary working condition Excellent training opportunities and facilities
Information Management Capability
Information management capacity factors related to the design and management of the flow of information from outside into and within an organization for the purpose of decision making.
Strengths
Ease and convenience of access to information sourceWidespread use of computerized information system Wide coverage and networking of computer system
General Management Capability
General management capability relates to the integration, coordination and direction of the functional capabilities towards common goals.
Factors Factors related to the general management system Factors related to external relationships Factors related to organizational climate
Strengths
Effective system for corporate planning Control, reward and incentive system for top
managers geared to the achievement of objectives Effective management of organizational change