strategic audit – strategic management

strategic audit – strategic management

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Strategic management project questionnaire

 

Interview Questions

 

  1. Industry Situation
  1. What industry are you operating in?
  2. What are the products within the industry?
  3. Who were the first entrants to the industry?
  4. Who were the key competitors in the industry in the beginning and who are the key competitors now?
  5. What are the characteristics of the industry according to:
    1. Types of competition (e.g. monopoly, oligopoly, perfect competition and others)
    2. Customer characteristics
    3. Profit/volume of business
  6. How fast are the above characteristics of the industry changing?
  7. How fast is the industry growing and how big is the industry?
  8. What are the driving forces (e.g. internet, globalization, technology, or others) that affect the industry?
  9. What are the key success factors of the industry? (e. g. Economic growth, Industry growth, openness to international markets, access to technology, access to resources at low prices, etc.) 
  10. How strong is the competition within the industry?
  11. How do the five competitive forces (suppliers, buyers, new entrants, existing rivals and substitutes) operate in the industry? Do these forces present opportunities or threats?
  12. What are the (major) issues within the industry?

2.1. Company Situation

  1. Who established the company and when was it?
  2. What was the legal form of the company (sole proprietorship, partnership, private limited, or public limited) and has it changed through time or is it still the same?
  3. Who are the main competitors of the company?
  4. What was the number of branches when it was established and how many branches are there now?
  5. What is the geographic coverage of the company?
    1. Domestic (partial/entire)
    2. Regional
    3. International
  6. How strong is the reputation of the company, in these regions?
  7. What are the major events (developments) that occurred to the company since its establishment?
  8. What is the status of the sales of the company? Compared

(1) To itself in the past, and

2) To other competitors in the market

  1. Are the sales/profits on an increase each year?
  2. Are the returns on investment of the company on an increase?
  3. What are the main problems and strategic issues that are faced by the company?

2.2. Current Strategic posture of the Company

  1. What has been the performance of the company over the past three years?
  • In terms of marketing performance
  • In terms of financial performance
  1. Does the company respond to the changing external forces and how fast does it respond?
  2. What are the current vision and mission of the company?
  3. What are the current goals and objectives of the company?
  4. What is the current corporate strategy of the company for growing its business?
    1. Growth strategy
    2. 1 Concentration –Vertical/Horizontal integration?
    3. 2 Diversification–Related / Unrelated?
    4. Stability strategy (if, any)?
    5. Retrenchment strategy (if, any)?
    6. Other strategies, if any?
  5. What is the competitive approach (business strategy) of the company?
    1. Low-cost leadership (over-all low cost or focused low-cost) strategy
    2. Differentiation (broad differentiation or focused differentiation) strategy
    3. Best cost provider strategy (Good quality products at neither high nor low but affordable prices)
  6. Anything special about the different functional strategies (e.g. Marketing, Finance, Production, HR, R&D, MIS, etc.) that give competitive advantage for the company?
  7. What is the corporate culture of the company?
  8. SWOT Analysis

3.1a. External PEST Environment

PEST

Opportunities

 

High

Mode-rate  

Low

Comments

(Specify the reasons for the rating)

Scope for expansion of current products in the current markets        
Scope for adding more products to current product line        
Scope  for expansion into new geographic areas/markets        
To extend brand name/image

 

       
Scope for transferring skills to new products        
Openings to exploit new technologies        
Acquisition or merger of rivals        
Take market share from rivals

 

       
Any other PEST (Political/Legal,  Economic, Social, or Technological) opportunities        

 

PEST

Threats

 

High

 

Mode-rate

 

Low

Comments

(Specify the reasons for the rating)

Economic changes that can affect the company  negatively        
Slowing market growth        
Reduced buyer needs for product        
Social/Demographic changes that can affect the company negatively        
Costly new regulations        
Threat of new technologies        
Any other  PEST-related threats        

3.1b. Industry environment

  1. How strong are the rivals within the industry?
  2. How strong are the entry barriers?
  3. Are there any substitute products and are they placing any threats?
  4. Do the suppliers have a strong bargaining power over the company? 
  5. Do the customers have a strong bargaining power over the company?
   

High

 

Mode-rate

 

Low

Comments

(Specify the reasons for the rating)

Increasing competitive pressures from rivals        
Growing leverage (bargaining power) of customers        
Growing leverage (bargaining power) of suppliers        
Threat from entry of potential new competitors        
Loss of sales to substitutes        

 

3.2. Internal environment

internal

Strengths

 

High

 

Mode-rate

 

Low

Comments

(Specify the reasons for the rating)

Powerful corporate/business

strategy

       
Capable management team        
Good management practices        
Good organizational culture

 

       
 Alliances or cooperative ventures with capable partners        
Strong financial position        
Strong brand name image/reputation        
Market leadership position        
Strong advertising        
Good customer service        
Cost advantages        
Advanced production technology        
Better product quality

 

       
Product innovation skills        
Proprietary technology        
Superior R&D facilities        
Wider use of MIS within the organization        
Superior Human Resource practices        
Any other internal strengths        

 

internal

Weakness

 

High

 

Moderate

 

Low

Comments

(Specify the reasons for the rating)

No clear strategic direction        
Weak marketing skills        
Narrowness of  product line        
Falling behind in R&D        
Missing some key skills/competencies        
Higher overall costs than rivals        
Weak balance sheet; excess debt        
Internal operating problems        
Any other internal weaknesses        

 

  1. sfas matrix

 

  1. Recommendations
  1. If the company wants to rewrite or change its vision and mission what will be:
  1. The new vision, and
  2. The new mission?
  3. Is the company satisfied with its current goals/objectives or does it want to rewrite them? What could be the new set of future goals/objectives of the company?
  4. Does the company have any thoughts of deciding on new strategic alternatives and, if so, what are they at the following levels:
    1. Corporate level
    2. Business level
    3. Functional level
  5. How could these new strategies be implemented?
  6. On what basis would these new strategies be evaluated and how would the company be able to control them?

    

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Strategic Management- Project

Report Format

 

 

  • Introduction

 

 

 

  • Industry situation -History, development, current issues

 

 

 

  • Company situation -History, development, present problems

 

 

 

  • Present strategic posture -Vision/Mission/Goals/Objectives/Strategies/ Structure/ Culture

 

 

 

  • SWOT Analysis

Internal environment analysis

Internal environment analysis

 

 

 

  • Recommendations

Review vision/mission

Review goals/objectives

Strategic alternatives (Corporate, Business, Functional-level)

 

 

 

  • Strategy Implementation

 

 

 

  • Strategy Evaluation and Control Standards

 

 

 

  • Appendices

 

 

 

  • References

 

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