Q1. Perform a Strategic Audit for a company.
Ans. I will be performing the strategic audit, based on the Framework, given by T. L. Wheelen and J. D. Hunger. In my personal opinion, find the framework, to be appropriate and accurate for conducting strategic evaluation, of a company.
In the specific framework, the authors have highlighted the importance of assessing the Internal and External Environment of the organization, which helps us to better understand, the Strategy being followed.
As discussed in class-room the structure, I will be following is :-
A> List the Internal Factors { Strength & Weakness }
B> Internal Factors Analysis Summary
C> List the External Factors { Opportunities & Threats }
D> External Factors Analysis Summary
Limitation
Strategic Audit of a company comprises of many more factors and variables. Aspects like Financial objectives and targets, Marketing strategies, R&D programs, Operations & Logistic performance targets etc.
These details are very confidential and are also subject to continuous monitoring and change. Therefore, being unaware of these confidential details, adds up to the limitation of this Strategic Audit.
As highlighted, we will therefore, be covering the dimensions that are available for evaluation, as a non-employee or external observer of the company.
Terminologies
Here, in the tabular column we have used Weight, Rating and Final Score. Let, me give some details about how they are being used.
Weight :- The total is 1. Now, we have understand how important any given factor is in the Tabular column.
If it is very important we will give it O.5O ( 50% ) Weightage if it is less important then only O.O5( 5% ) Weightage.
Rating :- Here, we have do the rating out of 5. So, for the Best condition we will give 5-out-of-5, and for the worst 1-out-of-5.
Final Score :- This is the final multiplication of the Weight and the Rating.
A> Listing the Internal Factors that impact a company
The company I have chosen for Strategic Audit is Amazon India. The audit is just an expression of my view(s) and are not to be treated as facts or in any other way. Internal Factors have 2 aspects - Strength and Weakness.
As the name suggests Internal Factors, only and only deals with Factors which are Internal to the company or within the company. So, when we mention the factors/ points under strength or weakness it will be w.r.t within the company, not outside comparison.
Internal Factors
A. Strengths
1. Competent Employees
2. Pay Master
3. Huge Capital or Investment backing
4. Best-in-class Infrastructure for its employees and other operations
5. Customer centric innovation & operation(s)
6. Wide product & service offering to consumer
7. World’s Biggest and most advanced supply-chain and Logistic capabilities
8. Advanced Data Analytics, Artificial Intelligence & Cloud Computing Capabilities
B. Weaknesses
1. World renowned for its non-favourable employee Culture
2. Leadership is strictly target driven and does not consider the long-term sustainability of the process with-respect-to employees of the company.
3. Not a Home-grown brand, therefore it would take time for Amazon to build consumer-trust, in the Indian Marketplace.
4. Online Payment, shopping and other services, is fairly new to the Indian consumer base.
More clear picture >>
This is one picture and 1 table only ... for clarity its shown in 2 halves
A> List the External Factors
Opportunities
With reference to PESTELD
1. The Population dividend of India, is a huge benefit - manpower, more number of consumers, diverse needs of the population, vast resource(natural) availability etc
2. Growing Economy, therefore the market is yet to be tapped. [ Mkt. Growth potential is very High ]
Threats
1. Government frames certain rules and regulations after the companies have already invested and acted strategically, which can lead to huge losses for the company.
2.
A> List the External Factors
Opportunities
With reference to PESTELD
1. The Population dividend of India, is a huge benefit - manpower, more number of consumers, diverse needs of the population, vast resource(natural) availability etc
2. Growing Economy, therefore the market is yet to be tapped. [ Mkt. Growth potential is very High ]
3. Hire Emotionally Intelligent Top-Mgmt. and workforce.
4. Expansion to more new countries around the Globe.
Threats
1. Government frames certain rules and regulations after the companies have already invested and acted strategically, which can lead to huge losses for the company.
2. Competitors which are well-funded and have good exposure in the E-Commerce segment.
3. E-Commerce a fairly new market-dimension altogether.
4. Traditional and domestic sellers(offline-mode), are protesting against Online selling.
B> External Factors Analysis Summary
Factors
|
Weight
|
Rating
|
Final Score
|
Opportunities
1. The Population dividend of India, is a huge benefit - manpower, more number of consumers, diverse needs of the population, vast resource(natural) availability etc
2. Growing Economy, therefore the market is yet to be tapped. [ Mkt. Growth potential is very High ]
3. Hire Emotionally Intelligent Top-Mgmt. and workforce.
4. Expansion to more new countries around the Globe.
|
0.25
0.15
0.05
0.10
|
4.0
3.5
3.0
2.0
|
1.0
0.525
0.15
0.20
|
Threats
1. Government frames certain rules and regulations after the companies have already invested and acted strategically, which can lead to huge losses for the company.
1. Competitors which are well-funded and have good exposure in the E-Commerce segment.
2. E-Commerce a fairly new market-dimension altogether.
3. Traditional and domestic sellers(offline-mode), are protesting against Online selling.
|
0.15
0.15
0.10
0.05
|
4.0
3.0
2.0
2.5
|
0.6
0.45
0.20
0.125
|
TOTAL
|
1.0
|
|
3.25
|
