Each owner of the small or big business dreams of leading the market and demonstrating good results. Strategic audit helps this dream come true. Thanks to the precise analysis of the company present-day data and strategies of local competitors, there are more chances to be the first and the best in a particular sphere of business.
What is Strategic Audit?
The strategic audit is the analysis and the evaluation of strategic management. The main aims of it are to determine weak and strong points of the certain company and its competitors and develop the strategic plan which will lead to the future great profits and success.
Significance of Strategic Management
Strategic management plays a critical role in the prosperity of the company as it identifies whether the business meets the need of the certain environment and creates the ways in which company can demonstrate better results than competitors.
How Does It Work?
• Data Gathering and Analysis
The following information should be considered to maximize strategic management process:
– Analyze the work of the competitor companies. What strategy do competitors use? Who are their partners? Who are their customers? How many employees do the competitors hire? How do they distribute their funds and resources?
– Compare weak and strong points of the company to those of its competitor. What quality, speed, service, and cost areas do competitors complete in comparison to the analyzed company? What are the trumps of the competitors and analyzed company? How to use them to benefit? What are the weak points of the competitors? How does the analyzed company can improve them?
– Consider geographic, social, and political factors . The manager should have a deeper and wider perspective on future and take into consideration problems which can unexpectedly occur.
• Creation and Implementation of the Business Plan
As all factors and data mentioned above are analyzed, the creation of the strategic business plan begins. As a rule, the strategic audit has short-term and long-term goals, which require constant analysis and correction. Long-term goals consist of many short-term goals. Consequently, if one of the short-term goals is successfully gained, then a company goes to the second one. However, if one of the short-term goals does not demonstrate expected results, the whole plan should be reanalyzed and corrected.
• Audit Report
The integral part of the audit is detailed and frequent reports. Each idea and act should get a positive or negative evaluation in accordance with its efficiency. The failure of one component is the sign for improvement and reformation of the whole audit plan.
• Audit Cycle
The strategic audit is an ongoing process which never ends. As soon as the company successfully achieves one goal, the other is given, and the circle starts again.
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