Strategic Audit of a Corporation
Strategic Audit of a Corporation
I. Current Situation
A. Current Performance . How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?
B. Strategic Posture What are the corporation's current mission, objectives, strategies, and policies? 1. Are they clearly stated or are they merely implied from performance? 2. Mission: What business(es) is the corporation in? Why? 3. Objectives: What are the corporate, business, and functional objectives? Are they consistent with each other, with the mission, and with the internal and external environments? 4. Strategies: What strategy or mix of strategies is the corporation following? Are they consistent with each other, with the mission and objectives, and with the internal and external environments? 5. Policies: What are they? Are they consistent with each other, with the mission, objectives, and strategies, and with the internal and external environments? 6. Do the current mission, objectives, strategies, and policies reflect the corporation's international operations, whether global or multidomestic?
II. Corporate Governance
A. Board of Directors 1. Who are on the board? Are they internal or external members? 2. Do they own significant shares of stock? 3. Is the stock privately held or publicly traded? Are there different classes of stock with different voting rights? 4. What do they contribute to the corporation in terms of knowledge, skills, background, and connections? If the corporation has international operations, do board members have international experience? 5. How long have they served on the board? 6. What is their level of involvement in strategic management? Do they merely rubber-stamp top management's proposals or do they actively participate and suggest future directions?
____________________________________________
Source: T. L. Wheelen and J. D. Hunger, Strategic Audit of a Corporation,
I. Current Situation
A. Current Performance . How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?
B. Strategic Posture What are the corporation's current mission, objectives, strategies, and policies? 1. Are they clearly stated or are they merely implied from performance? 2. Mission: What business(es) is the corporation in? Why? 3. Objectives: What are the corporate, business, and functional objectives? Are they consistent with each other, with the mission, and with the internal and external environments? 4. Strategies: What strategy or mix of strategies is the corporation following? Are they consistent with each other, with the mission and objectives, and with the internal and external environments? 5. Policies: What are they? Are they consistent with each other, with the mission, objectives, and strategies, and with the internal and external environments? 6. Do the current mission, objectives, strategies, and policies reflect the corporation's international operations, whether global or multidomestic?
II. Corporate Governance
A. Board of Directors 1. Who are on the board? Are they internal or external members? 2. Do they own significant shares of stock? 3. Is the stock privately held or publicly traded? Are there different classes of stock with different voting rights? 4. What do they contribute to the corporation in terms of knowledge, skills, background, and connections? If the corporation has international operations, do board members have international experience? 5. How long have they served on the board? 6. What is their level of involvement in strategic management? Do they merely rubber-stamp top management's proposals or do they actively participate and suggest future directions?
____________________________________________
Source: T. L. Wheelen and J. D. Hunger, Strategic Audit of a Corporation,