Markets are complex and dynamic. They are continuously evolving and require a level of understanding at both the macro and micro levels, that is necessary in order to run a successful enterprise that is adaptable and profitable. While it is not uncommon for businesses to stablish themselves in their initial stages, there is a reason why most do not survive past the Stage II phase of their cycle. The fluid nature of an enterprise’s business environment, both internal and external, require insight into the environment, the business’ position within it and it’s interactions with it. This is where strategic auditing becomes a powerful tool that can tell those driving the business what their capabilities are and how they fit in to the current market, while making strategic recommendations to help improve the company’s standing within that market. (As a side note, it is now clear to me that the entire course was basically a layout for the steps to be taken during a strategic audit.)
Procuring all of the necessary information is the first step towards delivering a good strategic audit. A discerning audit identifies all of the resources available to a business, both human and in capital. Assigning proper value to each of these resources is a crucial step in formulating a plan. Looking at a company’s value chain through a Value Chain Analysis, one can discern the activities that take place in a business and break them down into both primary and secondary activities. These can then be turned into an analysis what activities can be outsourced and of the competitive strength of the business. Identifying core competencies followed by performance analyses help define the overall strategic performance of the company. Looking at how the business sees itself in relation to the marketplace is the next step. This involves assessing the current business strategy. A SWOT