Meaning Of Corporate Appraisal

Last Updated on Sat, 09 Dec 2023 | Marketing Planning

Broadly, corporate appraisal refers to an examination of the entire organization from different angles. It is a measurement of the readiness of the internal culture of the corporation to interact with the external environment. Marketing strategists are concerned with those aspects of the corporation that have a direct bearing on corporate-wide strategy because that must be referred in defining the business unit mission, the level at which marketing strategy is formulated. As shown in Exhibit 3-1, corporate strategy is affected by such factors as value orientation to top management, corporate publics, corporate resources, past performance of the business units, and the external environment. Of these, the first four factors are examined in this chapter.

Two important characteristics of strategic marketing are its concern with issues having far-reaching effects on the entire organization and change as an essential ingredient in its conduct. These characteristics make the process of

Know your enemy and know yourself, and in a hundred battles you will never be in peril.

Sun-T zu

Know your enemy and know yourself, and in a hundred battles you will never be in peril.

Sun-T zu

marketing strategy formulation a difficult job and demand creativity and adaptability on the part of the organization. Creativity, however, is not common among all organizations. By the same token, adaptation to changing conditions is not easy. As has been said:

Success in the past always becomes enshrined in the present by the over-valuation of the policies and attitudes which accompanied that success. . . . With time these attitudes become embedded in a system of beliefs, traditions, taboos, habits, customs, and inhibitions which constitute the distinctive culture of that firm. Such cultures are as distinctive as the cultural differences between nationalities or the personality differences between individuals. They do not adapt to change very easily.1

Human history is full of instances of communities and cultures being wiped out over time for the apparent reason of failing to change with the times. In the context of business, why is it that organizations such as Xerox, Wal-Mart, Hewlett-Packard, and Microsoft, comparative newcomers among large organizations, are considered blue-chip companies? Why should United States Rubber, American Tobacco, and General Motors lag behind? Why are General Electric, Walt Disney, Citicorp, Du Pont, and 3M continually ranked as "successful" companies? The outstanding common denominator in the success of companies is the element of change. When time demands that the perspective of an organization change, and the company makes an appropriate response, success is the outcome.

Continue reading here: Factors In Appraisal Corporate Publics

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Readers' Questions

  • gabriella
    What are the important aspects which need to be considered in a corporate appraisal?
    1 year ago
    • Corporate appraisal is an important process that evaluates the financial and operational performance of a company. There are several aspects that need to be considered during this process. Here are some of the important aspects:
    1. Financial Performance: Assessing the company's financial performance is crucial. This includes analyzing financial statements, such as balance sheets, income statements, and cash flow statements. Key financial indicators like profitability, liquidity, solvency, and efficiency should be evaluated.
    2. Market Position: Evaluating the company's market position involves understanding its competitive landscape, market share, and growth potential. Examining customer satisfaction, brand value, and market trends can provide insights into the company's position relative to its competitors.
    3. Management and Leadership: Assessing the capabilities and effectiveness of the management team is essential. Reviewing their track records, skills, and experience can indicate the company's ability to achieve its strategic goals. Evaluating leadership style, corporate governance practices, and succession plans is also important.
    4. Business Strategy: Analyzing the company's business strategy is crucial to understand its long-term viability. This includes assessing the competitive advantage, market diversification, innovation, and risk management practices. Evaluating the alignment of the strategy with the current market conditions is essential.
    5. Operations and Efficiency: Assessing the efficiency of the company's operations is important to identify areas for improvement. Evaluating production processes, supply chain management, cost control measures, and quality control practices can help identify operational strengths and weaknesses.
    6. Human Resources: Evaluating the company's human resources is critical as employee performance and engagement significantly impact its success. Assessing employee satisfaction, turnover rates, training and development programs, and diversity and inclusion practices can provide valuable insights.
    7. Stakeholder Analysis: Considering the interests of various stakeholders, such as shareholders, employees, customers, suppliers, and communities, is important. Understanding their expectations and assessing the company's relationships with stakeholders can help identify potential risks and opportunities.
    8. Industry and Economic Factors: Evaluating the industry's outlook and economic factors that may impact the company is essential. Factors like technological advancements, regulatory changes, economic cycles, and geopolitical risks should be considered to assess the company's resilience and adaptability.
    9. Corporate Social Responsibility (CSR): Considering the company's CSR practices, environmental sustainability initiatives, and ethical behavior is increasingly important. Evaluating the company's commitment to social and environmental responsibilities can impact its reputation and long-term viability.
    10. Risk Assessment: Identifying and evaluating potential risks associated with the company's operations, market conditions, legal and regulatory compliance, and other factors is crucial. Conducting a thorough risk assessment can help mitigate potential threats and improve decision-making.
      11. Overall, an effective corporate appraisal considers a comprehensive range of aspects to provide a holistic evaluation of the company's performance, strengths, weaknesses, and potential areas for improvement.
    • olavi
      What is corporate appaisal?
      1 year ago
      • Corporate appraisal is an evaluation of a company’s overall economic performance, corporate governance, and strategic objectives. It is typically conducted by an independent third-party consultant and includes an analysis of the company’s financial statements, operational performance, and competitive environment. The appraisal also includes an assessment of the company’s strategic objectives and plans, management's ability to deliver on these objectives, and its overall value.
      • christina beyer
        What is corporate apriasal?
        1 year ago
        • Corporate appraisal is the process of determining the fair market value of a company and its assets. This typically includes financial analyses such as an income statement, balance sheet, and cash flow statement. It also involves evaluating the company’s competitive positioning in the market and the value of the organization’s intangible assets. An appraisal is often used to facilitate mergers, acquisitions, or valuations for financial reporting purposes.
        • jay
          What is corporate apprisal?
          1 year ago
          • Corporate appraisal is a process in which an organization evaluates the performance, skills, and potential of its employees to identify its workforce needs and plan for future resources and staff. It involves setting goals, providing feedback, and documenting performance over time. Corporate appraisal helps organizations to identify their top performers and develop strategies to retain and motivate them.
          • FRANCA
            What is Corporate Appraisal in project management?
            1 year ago
            • Corporate Appraisal in project management is the process of assessing the ongoing performance of a company by analyzing its products, services, processes, and results. This includes assessing the financial performance of the company, evaluating customer satisfaction and its effect on company performance, and identifying areas of improvement. It is a crucial step in the project management process and helps the business to identify strengths and weaknesses and formulate improvement plans.
            • aydin findlay
              What is corporate appraisal?
              1 year ago
              • Corporate appraisal is the evaluation of a company's overall financial performance, including the value of its assets, liabilities and earnings. This appraisal is typically done by an independent financial professional and may be used for a variety of purposes, such as setting up a financial plan for the company or preparing for a merger or acquisition.