E3 – Corporate Appraisal and position Audit

They are the same in my opinion. Corporate appraisal looks at the organisation using external factors (such as competitors, market and technology) and internal factors (such as skills, know-how, brand). In particular, how well do the internal and external elements match (eg are we fit to compete?)

Position analysis does the same ie our position relative to markets, competitors, emerging consumer preferences etc.

Think of SWOT, as a summary sheet of internal factors (S,W) and external factors (O, T). Other tools help you identify the SWOT elements. For example:

PESTEL identifies large external factors that can be classified as O or T

5 forces identifies competitive external factors, such as how easily can competitors enter the market?

M words (money, machinery, methods, matrtial etc) identify internal resource positions (S, W).

Product life cycle analysis also identifies where products are and the S or W of our product portfolio.

I am not convinced that GAP analysis really forms part of position analysis or corporate appraisal. It really sets out the gap between what the company will achieve on present form and what its owners want it to achieve. Corporate appraisal/position analysis will halp to identify whether the gap can actually be closed. Owners can wish for great success but their company might be unable to achieve that if the positiion analysis is unfavourable and the position unmendable.

You are welcome.