Strategic Audit Case Preparation

Current Situation
A. Strategic Position
Mission (What do they stand for?)
Objectives (What targets are they trying to achieve? Quantifiable targets. Ex: First in marketplace, % increase over last years sales/revenues/profits. These need to be SMART goals)
Current Strategies (What is their current business level strategy – low cost, differentiation, etc.?; What is their current corporate level strategy – related, unrelated diversification, restructuring, status quo? What is their current International Strategy – global, multidomestic, transnational, etc?) For CASE #1 – only list business level strategy. For CASES #2 & #3 – list all three strategies.
Current Financial Performance (Including the most recent results, what does this tell the reader about the performance of the company?)
Use ratios listed in the Preparing an Effective Case Analysis section in your textbook.
Include stock price and financial trends for 3 years

Strategic Managers (Analyze what their leadership has done for the company, not just their bios – should not be more than 1 page)
Board of Directors
Top Management

External Environment (Figure 2.1 page 41) (Identify how the external environment impacts the company, opportunities and threats – DO NOT discuss the companies’ strengths and weaknesses)
General Environment (Demographic, Economic, Sociocultural, Global, Technological, Political/Legal)
Industry Environment (Threat of New Entrants, Power of Suppliers, Power of Buyers, Product Substitutes – NOT competitors, Intensity of Rivalry)
Competitor Environment (Future objectives, Current strategy, Assumptions, Capabilities, Response)

Internal Environment (Figure 3.1 page 80)
Resources (tangible and intangible)
Capabilities
Core Competencies
Sustainable Competitive Advantage

Analysis of Key Strategic Factors (KSF) (What are the factors that will make or break this company?) For Case 3, only complete Sections V – VIII.

Issues facing the Company (Critical issues that they are facing today – make sure you research the most current information)

Strategic Alternatives and Recommended Strategy. DO NOT list operations or marketing strategies. When you list the alternative – list what type of strategy you are discussing. (The strategic alternative cannot be to stay the course)

Strategic Alternative 1
Pros
Cons
How is it meeting a KSF?
Strategic Alternative 2
Pros
Cons
How is it meeting a KSF?
Strategic Alternative 3
Pros
Cons
How is it meeting a KSF?
Recommended Strategy – Pick one of the 3 described in Section VII.
Financial Analysis of Recommended Strategy – There needs to be a net positive impact to the company otherwise there would be no reason to implement the alternative. Discuss and show the net effect.
Implementation – This is the action plan of the alternative chosen. (who, what, when, where and how)

VIII. Conclusion

Reference for preparation: Preparing an Effective Case Analysis, starting on page C-4 middle of textbook before cases.

Preparation for Paper

Format for Strategic Audit Case: Please use the roman numerals above and include the content under each. Include a reference page for all references used for the analysis.
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Category: Essays