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Learning Diary 4 of CSPSubmitted By: Submitted To:

Sanchita Bharali Mr. Irfan Ullah

PGDBM 2nd

year

Roll No. 62

Class 12

Date 27/08/2010

In todays class, we discussed about Environmental Scanning and factors to be considered for

Environmental Scanning. There are four factors namely events, trends, issues and expectations.

We took different examples to understand these factors. For example: the Bhopal Gas Tragedy at

the Union Carbide factory was an event since it was a specific occurrence that took place at a

specific environment sector. During an investigation, it is found that the rumor of bird flu usually

spreads during Army tenders. As a result of this, price of fish and mutton shoots up. These prices

are placed in tenders and this remains same for the whole year. So suppliers of fish and mutton

get highly benefited. This is becoming a trend. The rising concern among people about

environment pollution after Bhopal Gas Tragedy is an example of issue because it rose in

response to the event Bhopal Gas Tragedy. The expectation of public that Government would

make strict rules keep in minds of people safety is the example of fourth factor expectation.

Today we also discussed about different approaches to environment scanning namely systematic

approach, ad hoc approach and process formed approach. The first two approach can be used for

relevant environment while third approach can be used for both relevant and general

environment of the organisation. We also discussed about different sources of information for

environment scanning.

Class 13

Date 31/08/2010

Today we learned about organizational appraisal which is the process of evaluating the factors

which are present in the internal environment of the organisation. The resources, behavior,

strength and weakness, synergic effect and competencies of an organisation determine the nature

of the internal environment of the organisation. The organizational resource and behavior

combines to create the strength and weakness of the organisation which have a synergic effect.

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This effect results in competencies of the organisation that the organisation need to sustain

competition of the market. For example: BSNLs core competency is 3G technology. We

discussed about organizational capability and its strategic advantage. Capability is the ability

organisation to use its strength and overcome its weakness. Strategic advantage is the outcome

of organizational capability.

Another topic of discussion of the class was organizational capability factors. There are six

factors whereas we discussed about the first three factors namely financial, marketing and

operational factors. for example: ITCs wide variety of products, brand building, effective

distribution system etc. supports its marketing capability and help in strategy formulation and

implementation.

Class 14

Date 03/09/2010

In todays class, we discussed about the remaining three factors of organizational capability

namely personal, information management and general management capability, factors affecting

organizational appraisal, different methods and techniques used for organizational appraisal such

as VRIO Framework, value chain analysis (Portes generic Value Chain).

We learned that there are different factors that affect the organizational appraisal such as persons

involved in strategic formulation, size of the organisation, its mission, vision etc.

For internal analysis, VRIO Framework helps by determining the capabilities of the firm those

are valuable, rare, inimitable and for which the firm is organized for usages. This results in

sustainable strategic advantage.

Value Chain Analysis is the method of assessing strength and weakness of the organisation based

on the series of activities it performs. Each activity has a value. There are five primary activities

namely inbound logistics (supply of raw materials), operation (process involved in making the

final product), outbound logistics (distribution channels), marketing and sales (brand building,

merchandising) and service (installation, repair).

Class 15

Date 15/09/2010

Today we discussed about corporate level strategies. These are the decisions related to allocating

of resources such as human resource, funds etc among different businesses of a firm, transferring

of resources from one business to other and managing and nurturing the portfolio of businesses.

This decisions help to achieve mission and vision of the corporate house.

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We also discussed about four strategic alternatives namely expansion strategy, stability strategy,

retrenchment strategy and combination strategy (mixture of expansion, stability and

retrenchment). An organisation goes for expansion strategy when it aims at growth by expanding

the scope of its business. To sustain in the competitive market expansion strategy is necessary.

There are six ways of adopting an expansion strategy. These are expansion through

concentration, through integration, through diversification, through cooperation, through

internationalization and through digitalization. The Ansoffs Product Market Matrix clearly helps

us to understand the expansion strategy through concentration.