1. Organization appraisal (Internal Environmental Analysis)
Internal environment provides an organization with the capability to capitalize on the opportunities or protect itself from the threats that are present in the external environment.
“Internal Environment analysis provide the information about the strengths and weaknesses of the organization”

2. Factors to be Analyzed in Organizational Appraisal
Strategic Advantage
Organizational Capability
Competencies
Synergistic Effect
Strengths
Weaknesses
Organizational Resources
Organizational Behavior

3. Organizational Resources
Tangible(physical) resources
Technology, plant and equipment, raw material, financial resources, infrastructure , etc
Intangible(Human)resources
Knowledge, skill, innovative capacity, experience, training of Human resource

4. Organizational Behavior
Organizational behavior create ability for, or place constraint in the usage of resources
It includes quality of leadership, management philosophy, shared values and culture, quality of work environment and organizational climate, organizational politics and policies, use of power, relationship and group norms etc.
“Organizational resources and organizational behavior collectively produce strengths and weakness”

5. Strengths and Weaknesses
Organizational resources and behavior combine in complex fashion to create strengths and weaknesses within internal environment of an organization
Strength
It is an inherent capability which an organization can use to gain strategic advantage.
Weakness
It is an inherent limitation or constraint which creates a strategic disadvantage for an organization

6. Synergistic Effects
Strengths and weaknesses combine in a variety of ways and produce synergic effects.
For instance two strong point in a particular functional area add up to something more than double the strength.
Two weaknesses acting in tandem result in more than double the damage.
Example
In marketing, the synergic effect occur when the product, pricing, distribution, and promotion resulting high level of marketing synergy.

7. Competencies
On the basis of its resources and behavior, an organization develops certain strengths and weakness which when combined lead to synergistic effects. Such effects manifest themselves in terms of organizational competencies.
Competencies.
Are special qualities possessed by an organization that make them withstand pressure of competition in the marketplace
Many organization achieve strategic success by building distinctive competencies around CSFs(critical success Factor)
Example
Superior product quality in a particular attribute, say, a two wheeler. Which is more fuel efficient than its competitor products
Creation of a market niche by supplying highly specialized products to a particular market segment.

8. Organizational capability
It is the inherent capacity or potential of an organization to use its strengths and overcome weaknesses in order to exploit opportunities and face threats in its external environment.
Types of capabilities
Financial capability
Marketing Capability
Operations Capability
Personnel Capability
General Management Capability

9. Consideration in Organizational Appraisal
1. Factors affecting Organizational Appraisal
2. Approaches to Organizational Appraisal
Factors affecting Organizational Appraisal
Approaches to Organizational Appraisal