This document discusses strategic audits and provides information about conducting one. It begins with definitions of strategy, strategic management, and audits. It then explains that a strategic audit assesses a company's current business strategy and execution to determine suitability and identify risks. The document outlines the steps in a strategic audit, including asking questions, evaluating current strategy, highlighting risks, and assessing resource needs. It also discusses when strategic audits should be used and provides dimensions and examples of companies that perform them. In conclusion, it states that a strategic audit is an in-depth review to determine if a company is meeting objectives efficiently and using resources fully.
1. A Presentation on The
Strategic Management (18MS03T1)
5th Unit : Strategy Evaluation and control
2nd Mid Topic: Strategic audit
As a part of 3rd semester Curriculum Submission to
The Department of Management Science
of
Sasi Institute Of Technology & Engineering (Autonomous),
SITE
Under the Guidance of :
Mr. K. Naga Raju Sir
Assistant Professor
Submitted by :
Immani.Chandra Shekar
(Reg. No: 19K61E0020)
2. Strategy is a design plan to achieve long term objectives of an organisation.
Strategic management is a set of management decisions and actions that
determines the long-run performance of a corporation. It includes
environmental scanning, strategy formulation, strategy implementation and
evaluation and control to achieve the objectives of an organization.
Audit: An official inspection of an organization's accounts, typically by an
independent body.
A Strategic audit is an examination and evaluation of areas affected by the
operation of a strategic management process within an organization.
Strategy ,Strategic management, Audit, Strategic audit
2
3. Why Strategic Audit:
• A strategic audit assesses your current business strategy, how suitable it is for your
business and whether your company is in position to execute the strategy.
• Performing a strategic audit on a regular basis is crucial to the success of the business, as
the strategy needs to constantly be taking into account market conditions and changes.
How does a strategic audit work’s?
1. It Asks The Right Questions.
For example, “what business am I in?”, what the objectives of your company?
2. It Evaluates Your Current Strategy.
3. It Highlights Strategic Risks.
4. It Assesses The Need For Resource Changes.
5. Findings of the strategic audit will need to be implemented. 3
4. When should a strategic audit be used?
A successful strategic audit is beneficial to any company. It assesses various
aspects of a business and evaluates and determines the most appropriate
direction for the company to move toward in achieving its goals. Complete
a strategic audit utilizing six phases.
Resource Audit
Value Chain Analysis
Core Competence Analysis
Performance Analysis
Portfolio Analysis
SWOT Analysis 4
5. Dimensions for Conducting a Strategic Audit:
There are typically eight dimensions in formulating a unified, comprehensive, and
integrated set of decisions from a top-management perspective that attains organization
purpose
Step 1: Situation Assessment
Step 2: Strategic Managers
Step 3: Environmental Scanning
Step 4: Strategy Evaluation
Step 5: Administrative Considerations
Step 6: Action Planning
Step 7: Implementation
Step 8: Performance Evaluation and Control 5
8. Conclusion::
A strategic audit is an in-depth review to determine whether a company
is meeting its organizational objectives in the most efficient way.
Additionally, it examines whether the company is utilizing its resources
fully. A successful strategic audit is beneficial to any company.
Perform a strategic audit such as a Fresh Eyes Assessment at least
every two years. It is crucial to the success of your
business. Otherwise, you are leaving money on the table. External
factors such as market conditions change. Nowadays, external
conditions change faster than ever. 8
