Strategic Audit: The End Result Of This Course Is Developing
Strategic Auditthe End Result Of This Course Is Developing A Strategic
Develop a preliminary strategic audit for a company or business unit, including analysis of the company’s value proposition, market position, and competitive advantage, an external environmental scan with a five forces analysis, identification of 5–7 key strategic issues, and initial recommendations for strategic improvements. Write from a consultant’s perspective addressing company executives, ensuring clarity, organization, and ethical attribution of sources. The report should be 7–10 pages in Word format, structured with a cover page, executive summary, table of contents, introduction, analysis sections, strategic issues, and recommendations.
Paper For Above instruction
The purpose of this strategic audit is to provide a comprehensive, initial evaluation of a company's strategic position within its industry, highlighting avenues for improvement and growth. Conducting such an audit enables organizational leaders to understand internal capabilities vis-à-vis external market forces, paving the way for strategic decision-making that aligns with the company's objectives and external realities.
Introduction to the Company
The first step involves a detailed assessment of the selected company, including its core value proposition, market positioning, and competitive advantages. These elements define the company's fundamental reason for existence, differentiation in the marketplace, and sustainability against competitors.
The company's value proposition encapsulates what makes its products or services attractive to customers — whether it's cost leadership, product differentiation, or niche specialization. Analyzing the market position involves examining the company's market share, competitive landscape, and target customer segments. The competitive advantage refers to unique resources, capabilities, or strategies that allow the company to outperform its rivals over sustained periods.
External Environmental Scan and Porter's Five Forces Analysis
This section involves scrutinizing the external ecosystem influencing the company's strategic options. The Five Forces framework assesses supplier power, buyer power, threat of new entrants, threat of substitutes, and industry rivalry. This analysis reveals external threats and opportunities, informing strategic priorities.
Understanding the current environment involves examining industry trends, technological changes, regulatory shifts, and economic conditions. Applying Porter's framework helps quantify the intensity of competitive forces, thereby highlighting where the company may need to strengthen its position or mitigate risks.
Identification of Strategic Issues
Critical strategic issues are those internal or external challenges that create a misalignment between the company's capabilities and external trends. These issues may stem from resource gaps, market threats, or missed opportunities. It is essential to identify 5–7 of these issues, each clearly labeled with a header and a rationale explaining why it is strategic.
For example, a strategic issue may involve declining market share due to technological obsolescence or failure to adapt to digital trends. Recognizing these issues allows the organization to focus resources on resolving the most impactful challenges, thus positioning itself for future success.
Preliminary Recommendations for Strategic Improvements
Initial strategic recommendations should aim to enhance alignment between internal capabilities and external opportunities or threats. These can include tactics related to marketing, branding, alliances, mergers/acquisitions, product innovation, diversification, divestiture, or globalization.
If global expansion is proposed, a comprehensive supply chain analysis and assessment of the firm’s global capabilities are necessary to understand logistical challenges and strategic fit. The recommendations should be presented as if advising top executives, emphasizing clarity, feasibility, and strategic alignment.
Conclusion
This preliminary strategic audit serves as a foundational document, providing insights that will inform subsequent analyses and strategic planning. The process emphasizes a balanced view of internal strengths and weaknesses, external opportunities, and threats, ensuring a holistic approach to strategic management.
References
- Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93.
- Grant, R. M. (2019). Contemporary Strategy Analysis (10th ed.). Wiley.
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- Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland, A. J. (2020). Crafting and Executing Strategy: The Quest for Competitive Advantage (22nd ed.). McGraw-Hill Education.
- Barney, J. B. (2019). Gaining and Sustaining Competitive Advantage. Pearson.
- Kaplan, R. S., & Norton, D. P. (2001). The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press.
- Y exterior analysis and strategic issues literature by Collis & Rukstad (2008). Harvard Business Review.
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