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Etop & Sap

This document summarizes an internal analysis (SAP) process for examining a firm's resources and capabilities in key functional areas to determine strengths and weaknesses. It identifies the key functional areas as: quantization (culture, structure, management), personnel/human capital, marketing, technical, and finance. By analyzing these areas, a firm can identify its competitive advantages and distinctive competencies over rivals. The internal analysis evaluates both qualitative and quantitative tangible and intangible resources. A separate section then discusses an external analysis (ETOP) for constructing a profile of environmental threats and opportunities facing a firm in the competitive landscape. It identifies the broader and micro/immediate environments and notes the industry environment directly impacts the firm.

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Subhadeep Paul
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3K views2 pages

Etop & Sap

This document summarizes an internal analysis (SAP) process for examining a firm's resources and capabilities in key functional areas to determine strengths and weaknesses. It identifies the key functional areas as: quantization (culture, structure, management), personnel/human capital, marketing, technical, and finance. By analyzing these areas, a firm can identify its competitive advantages and distinctive competencies over rivals. The internal analysis evaluates both qualitative and quantitative tangible and intangible resources. A separate section then discusses an external analysis (ETOP) for constructing a profile of environmental threats and opportunities facing a firm in the competitive landscape. It identifies the broader and micro/immediate environments and notes the industry environment directly impacts the firm.

Uploaded by

Subhadeep Paul
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SAP Analysis:

Internal assessment of the firm is critical for developing successful business and better strategies. Internal
analysis began with the identification of organization’s resources allocations. Resources allocation
convert financial resources into organizational, Human and Physical resources and ultimately into the
ability to interact and compete in the market. Successful market interaction generates great financial
resources which are again converted into Human and other Physical resources with greater abilities to
fight in the market. This is like a chain reaction of firm’s internal resources to generate and re-generates
greater amount of financial, physical, Human (tangible resources) and better capabilities to compete in
the market with added strength as show in the figure below.
SAP is the process by which firm’s resources and capabilities of key functional areas are
examined to determine its strengths and weaknesses.
The key functional areas may be:

1. Quantization Itself
- Culture
- Form and Structure
- Top Management Skills & Interests
- Planning System
2. Personnel (HR)
Or Human Capital
- Attitude
- Skills
- Competencies
- Loyalties
- Perceptions

3. Marketing
- Size of the Sales Force
- Product Quality
- Image
- Product Line
- Customer Services
4. Technical
- Production Facilities
- Production Techniques
- Product Development abilities/skills
- R &D
5. Finance
- Financial Strength
- Potential Financial Strength
- Revenue Potentials
By analyzing the above a firm is in a position to decide its “Competitive Advantages” and
“Distinctive Competencies (DC or Uniqueness) over competitors in the market. Internal
analysis consists of examining “Qualitative and Quantitative” resources viewing all
available resources in term of “Tangible Resources” and “Intangible Resources”.
ETOP Analysis:
A profile of environmental threats and opportunities is considered to be a very useful device and is a
summarized depiction of environmental factors and their impact on future functions of firm under
competitive environment. The environment is a significant source of change and is highly dynamic in
nature. Some organizations become victim of the change and dynamism of environment.
Basic Characteristics of Environment:
1. Uniqueness
2.Dynamic in Nature
3.Variability of Control
4.Environment Carries Risk, Uncertainties and Opportunities
On the basis of impact on a business house we can divide the environment into 4 categories:
1. The Mega Environment or Broader Environment:
a) Demographic Factors
b) Political Factors
c) Legal & Regularity
d) Socio-Cultural
e) Economic
2. The Micro or Immediate Environment or Industry Environment:
This environment and its components are very close to the firm; in fact the firm operates within this
environment. Therefore, the intensity of negative or positive effects are directly hit the firm and its
strategies/decision making. Porter Model of 5 Forces is the best tool to evaluate this environment

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