Researched and developed by R & R associates consulting
The purpose of an audit is to assess an organization’s strategy. Diverse information is typically obtained from library research, field work, or direct interviews – and increasingly from the Internet. Once the senior management has a clear picture of the organizational Strategy through the audit process; the management will be able to make relevant strategic decisions based on facts.
The Strategic Audit helps an organization to understand its historical functional emphasis (i.e., marketing, sales, production, finance, or research) and helps paint a picture of the expertise resident in its people and systems. It provides a clear picture of how your organization’s resources have been allocated over the years enables you to see where assets (people, capital, facilities, and equipment) have been deployed. By reviewing the returns associated with these investments, you will be able to make Strategic decisions with inherently more confidence and a higher expectation of superior results. Accordingly, the process of identifying where you’ve been is both a qualitative and quantitative process. The strategic audit encompasses both of these aspects and will assist you in reviewing your organizations past performance.
It is important to remember that it is impossible for the organization’s leader to know all aspects of the organization as well as those who deal with them on a daily basis. Therefore we recommend a participatory approach that involves all key members of the management team when doing a Strategic Audit.
Industry Analysis
Substitutes
Substitutes refers to alternatives of the company’s products or services mapped against the current status quo
Entry
Entry refers to new markets and alternatives of the company’s products or services which have appeared in the marketplace via-avis current status quo
Rivalry
Rivalry refers to the level of healthy competition and perhaps mutual respect that companies have for each others products, services and capabilities in the current market
Buyer Power
Buyer Power refers to the level of and the ability of our current customers to have an impact on our products and services based on current market and socio economic trends (Exercise of choice)
Supplier Power
Supplier Power refers to the level of and the ability our current suppliers to have an impact on our products and services based on current market and socio economic trends
Competitor Analysis
Competitor Analysis refers to a company’s ability to map the movements in competitors in our universe and track the impact of it to the business and customers.
Market Intelligence
Market Intelligence refers to a company’s ability to perceive and adapt to changes in the market.
Company Analysis
Risk
Risk refers to a company’s risk in strategy, market, financial and pure (operational) risks
Resources
Resources refers to a company’s resources either owned leased or outsourced
Value Chain Analysis
Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business.
- Primary Activities – those that are directly concerned with creating and delivering a product or service.
- Support Activities – which whilst they are not directly involved in production, may increase effectiveness or efficiency
Value Chain Analysis is one way of identifying which activities are best undertaken by a business and which are best provided by others.
Primary Activities
Primary Activities refers to a company’s activities carried out in creating value
Support Activities
Support Activities is the company’s ability to support the business strategies through its internal operations, systems and organizational structure.
Core Competencies & Capabilities
Core competencies are those capabilities that are critical to a business achieving competitive advantage.
Sources of Competitive Advantage
Sources of competitive advantages are those tangible or intangible advantages you create for your business
- Innovation
- Intellectual property
Employee /Managers / Directors / Shareholder Survey
Surveys provide insights otherwise unattainable
Leadership
Strategic Leadership is a CEO’s ability to provide a clear source of direction, decision making and long term planning.
Performance Analysis
Performance Analysis refers to a company’s ability to track and give feed back regarding its activities to be able to change to the change in the market.
Portfolio Analysis
Portfolio Analysis refers to a company’s portfolio of SBU’s, subsidiaries, or profit centers and the overall balance of the strategic business units of a business.
Clarity of purpose and Strategic Direction
Clarity of Purpose and strategic Direction is a shared understanding of the company’s identity and a detailed picture of the company in the future.
Strategic Planning
Strategic Planning is the process by which the company determines specific action steps to achieve future objectives.
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