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Opportunities 1. Entry into business has become easier than what it used to be in pre-liberalised era which was marked by industrial licensing and several types of clearances from various government agencies. 2. Liberalization has eased the process of business restructuring either by way of divesting some business by an organization or acquiring other businesses. 3. Liberalization has opened the path to private-sector organizations for the participation in management of public-sector companies through acquisition of majority or controlling shareholding as the government has adopted the policy of disinvestment. 4. Liberalization has paved the way for acquiring businesses abroad which adds to competitive advantages to the acquiring companies. 5. Post-liberalisation, raising of funds has become much easier because of fewer restrictions on this process. Threats 1. Liberalization has posed a kind of competition with which Indian companies have not confronted in the past. 2. Entry of many new players in business field has posed acute pressure on productive resources, both human and non-human. 3. Foreign Institutional Investors (FIIs), sometimes, interfere with the management process of companies in which these FIIs have substantial shareholdings through stock market operations. 4. With the increased limit of FIIs holding up to 49 percent, there may be threat of takeover of companies because promoters will not have controlling stake in share holding.
patent right
Strengths and weakness in Marketing Strengths 1. Favourable company image 2. Diversified product-mix 3. High market share 4. Growing or maturing stage of product life cycle 5. Effective and efficient 5. Ineffective distribution channel Weaknesses 1. Poor company image 2. Single or limited product 3. Low market share 4. Declining product life cycle
distribution channel 6. Efficient and motivated sales force with contacts with large number of customers 7. Efficient promotional efforts and proper product 7. Lack of promotional efforts 6. Inefficient sales force with
positioning 8. Efficient marketing research and feedback system 9. Pricing commensurate with 8. Defective research 9. Pricing unrelated to product and market features 10. Stagnant marketing strategy or no marketing
marketing strategy
Strengths and weakness in Finance Strengths 1. Low capital cost 2. Sound capital structure Weaknesses 1. High capital cost 2. Defective structure 3. Sound financial planning and proper capitalization 4. Advantages concessions 5. Widely shareholding 6. Cordial relations with 6. Lack of cordial relations with shareholders and financiers 7. Lack of proper accounting distributed 5. Shareholding in a few hands of tax 3. Bad financial planning either over or undercapitalization 4. High incidence of taxes and rigid capital
systems
Strengths and weakness in Human Resources Area Strengths 1. Highly skilled personnel 2. High learnability 3. Favourable change 4. High motivation and morale 5. High personnel retention 6. Low personnel absenteeism 7. Effective industrial relations attitudes to Weaknesses 1. Low skilled personnel 2. Low learnability 3. Unfavourable change 4. Low motivation and morale 5. High personnel turnover 6. High personnel absenteeism 7. Ineffective industrial relations attitudes to
Strengths and weakness in General Management Strengths 1. Transformational leadership 2. Future-oriented management 3. High organizational image to Weaknesses 1. Transactional leadership 2. Present-oriented management 3. Low organizational image and prestige 4. Low organizational climate to
and prestige 4. Sound organizational climate based on mutual trust and respect 5. Sound and suitable
based on authoritarian culture and mutual suspicion 5. Ineffective practices 6. Lack of well-defined or illmanagement
management practices 6. Suitable structure external demands 7. Well-maintained relationships external organization consistent and with
internal
Potential entrants
Threats of entry