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This document outlines the process of strategic auditing for a business. It involves 6 key stages: 1) conducting a resource audit to identify owned and accessible resources, 2) performing a value chain analysis to identify core and outsourced activities, 3) doing a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats, 4) analyzing core competencies to identify competitive advantages, 5) evaluating financial and performance over time, and 6) doing a portfolio analysis to ensure a balanced portfolio of business units. The overall goal is to understand a business's strategic position and capabilities to exploit opportunities and address threats.

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Madhupriya Singh
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174 views10 pages

1

This document outlines the process of strategic auditing for a business. It involves 6 key stages: 1) conducting a resource audit to identify owned and accessible resources, 2) performing a value chain analysis to identify core and outsourced activities, 3) doing a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats, 4) analyzing core competencies to identify competitive advantages, 5) evaluating financial and performance over time, and 6) doing a portfolio analysis to ensure a balanced portfolio of business units. The overall goal is to understand a business's strategic position and capabilities to exploit opportunities and address threats.

Uploaded by

Madhupriya Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

STRATEGIC BUDGETING & AUDIT

Presented by praveen MBA 2nd year

Definition of Audit

The external environment in which a business operates can create opportunities which a business can exploit, as well in a position to exploit opportunities or respond to threats, which could damage a business. Be in a position to exploit opportunities or respond to threats, a business needs to have the right resources and competencies are understood and evaluated- a process that is often known

PROCESS
can be summarized intothe following stages: Resource Audit Value Chain Analysis SWOT Analysis Core Competence Analysis Performance Analysis Portfolio Analysis
Strategic Audit

Resource Audit

Identifies the resources available to business some of this can be owned.(e.g., plant machinery, trademarks, retail outlets). Whereas another business can be owned through partnerships, joint ventures or simply suppler with other business.

Value Chain Analysis


Activities takes place in a business & relates them to an analysis of the competitive strength of the business. Identifies the activities(primary/ secondary) are best for our business & which are provided by others.

SWOT Analysis

Important tool for auditng the overall strategic position of a business & its environment.

Core Competence Analysis


Capabilities that are critical to a business achieving competitve advantage Done by recognizing competition between business.

Performance Analysis
Resource audit, value chain analysis & core competencies analysis helps to define the strategic capabilities of a business. After completion performance analysis is done to evaluate the overall performance of the business. Financial performance of business all changed over time to time &compared with others in the organisation or industry level.

Portfolio Analysis
Overall balance of the SBU of the business. Overall object, to ensure that the business portfolio is strong & that business unit requiring investment, Management attention is highlighted, General electric nine matrix & Boston consulting group matrix plays an important role.

Types of Audit
Auditing

is basically a watchdog function in organizations, used to evaluate the soundness of organizational systems such as accounting system. It plays an indirect role in exercising operational control as it helps in finding lacunae in the organizational system, correction which can aid in performance improvement. There are many different types of audits used by organization: Financial audit, Operational audit, or Information system audit.

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