Based On Your Research, Explain How You Would Conduct An Exp ✓ Solved
Based on your research, explain how you would conduct an
Based on your research, explain how you would conduct an internal strategic management audit and competitive strength assessment. Make certain you identify the specific resources, skills, or capacities you might use for the internal audit (e.g., the method of analysis and the selection of key factors). Why do you think these techniques are important? Be sure to identify how the factors chosen are tied to either the vision or mission of the firm or how they perform a specific task in the current strategy of the firm. Please be sure to validate your opinions in 250 words and ideas with citations and references in APA format.
Paper For Above Instructions
Conducting an internal strategic management audit and a competitive strength assessment is essential for any firm aiming to align its resources and capabilities with its strategic goals. The audit starts with a thorough analysis of the firm's internal environment, leveraging tools such as the SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and the VRIO framework (Value, Rarity, Imitability, Organization) to assess the organization's resources (Barney, 1991). The identification of key resources includes financial assets, technology, human capital, and organizational processes that are critical to competitive advantage.
To carry out the internal audit, I would employ a combination of qualitative and quantitative methods. Qualitative methods include interviews and surveys with key stakeholders, which provide insights into employee perspectives and culture (Kahn, 1990). On the quantitative side, I would analyze financial metrics, productivity data, and market share statistics, which can highlight performance gaps and trends over time (Gonzalez & Garza, 2013). The intersection of qualitative and quantitative findings ensures a comprehensive view of the firm's capabilities.
The techniques deployed in this audit are vital for several reasons. First, they identify areas where the firm excels and where improvements are necessary, which directly influences strategic planning. Understanding the current capabilities allows the firm to leverage its strengths while addressing weaknesses effectively (Rumelt, 2011). Moreover, these factors must align with the firm's vision and mission. For example, if a company’s vision focuses on innovation, the internal audit should assess whether its R&D capabilities meet this goal (Porter, 1985).
Ultimately, conducting a robust internal strategic management audit fosters transparency within the organization and offers actionable insights that can drive strategic initiatives forward. It reinforces the firm's strategy by ensuring that the resources and capabilities cultivated resonate with its overarching mission and strategic objectives (Collis & Montgomery, 2008). In summary, using a combination of qualitative and quantitative assessments provides a holistic approach to internal audits that are not only essential for operational assessment but strategic alignment as well.
References
- Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
- Collis, D. J., & Montgomery, C. A. (2008). Competing on resources: Strategy in the 1990s. Harvard Business Review Press.
- Gonzalez, R. & Garza, E. (2013). Financial ratios: A financial analysis tool. Finance & Investment, 12(4), 45-57.
- Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692-724.
- Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
- Rumelt, R. P. (2011). Good strategy/bad strategy: The difference and why it matters. Currency.