Strategic Audit and Management Process Order Instructions: Prepare a one-page paper showing your understanding of what a strategic audit is, does, and entails. Do you understand how it pulls together all of the business disciplines to achieve a certain end?
No references or sources are needed, just write enough to show that you know what a strategic audit is for, and essentially what it contains.
Strategic Audit and Management Process
Sample Answer
Strategic Audit
The strategic audit is considered as an evaluator and the examination of the strategic management process through an approach that seeks to measure an organizations performance against its corporate strategy. In an instance where a deficiency is noted in the processor in the performance of an organization, an institute is therefore required to perform a strategic audit, done by the organizations, in-house auditors or other audit firms that may be contracted to conduct the audit.
The auditors, therefore, audit the organization’s performance against its current corporate strategy with the aim of identifying the discrepancies with the organization’s current strategy that are tied or traced poorly to its performance. Upon the completion of these audits, the auditors develop a report that addresses the audited firm’s findings and submits the reports with the recommended approaches that would aid the organization in managing some of the noted deficiencies. The audited organization then seeks to establish the viability of these recommendations and implements the proposed remedies with the hope of improving its organizational performance.
How Strategic Audit Pulls Together Business Disciplines
A strategic audit ensures that all the necessary information of a company are secured for the development of its initiatives and are additionally included in the organizations business plan that is supported by the management of the organization. An organizations business plan, in this case, needs to cover some of the key essential areas that are critical for the success of the company in the future and that provide guidance to the daily functions of the company’s activities. The strategic audit, therefore, aids an organization in clarifying three primary areas that include: The organization’s security in its present business plan and is required to be complete and includes the relevant information required for its development. A strategic audit additionally secures an organization logistics for its business plan that includes the determination of a company’s vision, its feasible financial soundness and if the prioritized actions are bound to develop the company’s vision. On the other hand, a strategic audit also reveals the manner in which an organizations management team shares a continual commitment and belief towards the organization’s vision and if they have the same strategies and priorities aimed at enhancing the functions of the organization as stated in the business plan.
It is significant to ascertain that strategic audits aid organizations in determining the approaches that can be initiated by an organization in positioning itself in the market. In achieving this, an audit analyses an organization’s current strategy, customers, products, market, marketing, and sales approaches. The audit then matches an organization’s current status with the profile of a company and its brand with the aim of identifying an appropriate method of raising an organizations brand profile and how these products can achieve market exploitation. On the other hand, a strategic audit establishes an organizations control ratios to ensure its sustained output in terms of sales and marketing, a factor that includes the organizations implemented plans aimed at improving its international decision making. The functions of the employees and their general improvement measures are also considered in this process o understand the nature of the work deployed in achieving an organizations goal.
The primary concern of a strategic audit is to ensure the returns on a company’s investment and the achievement of an organizations market share. Strategic audits, therefore, indicate the performance of an organization in the market place as compared to the organization’s competitors, a factor that helps in estimating the capital base, value market, market definition, user base, and the scope of an organizations brand. Another vital element that strategic audits focus on is the profitability of an organization. This is achieved through an estimation of organizations break even points and expenses.
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