Individual Project: Company Case Analysis & Strategic Audit Report (30 Points)

Each learner will be assigned a different case study for an international organization in different fields of
businesses. You are required to study and analyze the case in order to conduct your Strategic Management
Audit report.
An audit report is the starting point of each strategy discussion which examines the current situation of a
corporate systematically. Company’s experience and international network of experts is trusted by large number
of clients from almost every industry sector, when the current strategy is planned by them. The main aim of
strategy audit is the evaluation of current strategy and to show how the company can position itself in the
market. The status quo with reference to business model and business plan is also shown by strategy audit.

While making the audit some steps are to be taken. Typically, the Strategic audit and case analysis project
report should consider the following points:

a. Concept & Content

The Strategic Audit Report will be an integrative paper that should reflect the learner’s ability in the
following areas:

i. Proper application of the strategic management concepts and tools learned during the Strategic
Management course;

ii. Integration of learning from the various MBA subjects through the diligent analysis of
economic, industry, competitor and other external data, the analysis and integration of firm-level,
divisional and functional issues, and the development of business objectives and strategies that are
consistent and supportive of the firm’s vision and mission;

iii. Critical thinking capability as shown in the analysis of external and internal strategic issues of
the chosen Strategic Audit company, and in the formulation of logical, rational and creative strategies;

iv. Translation of the strategies, plans and programs into a consistent set of financial projections
for the plan period, taking into account the resource requirements and financial implications of the
strategies, among others.

Please refer to the section on “The Strategic Management Audit Report: Guidelines and Suggested Outline”
here below for more details on the content of the Report.

In the formulation and development of the Strategic Audit Report, the learner is expected to undertake rigorous
research to obtain the needed information relevant to the audit report and the case company. The learner is also
expected to exercise professionalism in the manner of obtaining and using the information and in incorporating
the same into the report.
The appropriate use of the analytical tools should lead to critical factors and issues applicable to the case
company. The expectation is for a more in-depth analysis of information derived from rigorous research and
the use of critical thinking in determining the relevance and impact of research findings to the industry and the
case company.
b. The Evaluation of the Strategic Audit report

The learner shall submit a PDF copy of his/her Strategic Audit report to the group Admin on or before
the deadline, pages range from 25-30, the required font and style are APA style and Times New
Roman Font 12. The file should be named as following: Name (real not family name)-The company
name, for example:
Ahmed Mohamed Hassan-Yahoo Strategic Audit.

The Strategic Audit report shall be evaluated on the basis of how well it meets the requirements stated
under (a) and (b) above and on how well the learner is able to wittingly present and defend it
according to the attached rubric at the end of this syllabus.

The learner will receive a grade for the Strategic Audit Report submitted (to be given a weight of 30%
of the total grade).

c. Deadlines for the Submission of the Strategy Paper is 10/08/2022 – 5 PM

Late or not submitting the Strategic Audit report on the due date and timing cannot be tolerated and
will result in failure grade.
THE STRATEGIC AUDIT REPORT: GUIDELINES & SUGGESTED OUTLINE

EXECUTIVE SUMMARY

Provide a brief summary or overview of the strategy paper (in two pages at most), stating what
the business of the company is, the main results of the external and internal analyses, results of
strategy formulation tools used, the key strategic management issues and the recommended
strategic and financial objectives (at least for the next three years), and strategies and significant
action plans.

I. INTRODUCTION

Include a short background on the company

 Nature of business/products/services
 Current revenue size and profit
 Major markets served
 Number of employees
 Other relevant basic information

II. COMPANY’S VISION AND MISSION

 State the current vision, mission and objectives of the company

 Comment or evaluate the vision and mission statements using David’s framework and other
criteria discussed in class. Recommend changes if needed. Or, develop new vision and mission
statements. Explain how the recommended vision and mission meets the criteria based on
David’s framework, including how it takes into account ethical principles and nation building.
 Give recommendations on how you will communicate the vision and mission to the employees
and other stakeholders.

III. EXTERNAL ANALYSIS

A. General Environment

1. Using PESTEL Analysis, discuss current and expected outlook in the following areas,
focusing only on factors that will have significant impact on your business. Consider the
following areas only insofar as they are relevant, and thus exert a significant impact on
your industry.

a. Economic developments
b. Socio-cultural, demographic trends, lifestyle changes
c. Technological developments
d. Political, legal, governmental aspects
e. Ecological aspects
f. Other external factors that may be more directly relevant to your business
 2. Translate the above in terms of what it means for your business, identifying
opportunities and threats that may affect the following:

a. Market demand and opportunities

b. Types of products and services offered
c. Intensity of competition
d. Suppliers and distributors
e. Costs of doing business
f. Other aspects of the business

B. Industry and Competitor Analysis

1. Analyze the industry’s situation and prospects by looking into the following:

a. Market size and/or growth rate and stage in the growth cycle
b. Number of players and their relative sizes; market share analysis
c. Market aspects (products or service, price, promotion, and channels of
distribution)
d. Buyer/Customer profile
e. Factors affecting costs of doing business
f. Operations/Production aspects
g. Technology developments
h. Industry financial analysis (growth, profitability, liquidity, leverage,
efficiency)
i. Problems in the industry
j. Critical success factors in the industry

2. Analyze your industry using Porter’s Five Forces framework of competitive analysis
and based on the preceding analysis, state your conclusion for each force.

C. Summary and Conclusion

1. Using the results of your general environment and industry analyses, identify and
summarize the major opportunities and threats.

2. Use the EFE & CPM matrices tools to assess how well your company is responding to
the opportunities and threats in the environment. Make sure that the factors included in
your EFE & CPM have been discussed in the external and industry analyses and the
factors you discussed in your analyses should be reflected in your EFE for consistency.
Explain your weights and ratings.
 3. Draw your conclusion about the industry’s overall prospects and industry attractiveness.

4. Make a conclusion about your current company’s competitive position or business

strength in the industry, e.g., very strong, strong, middle-ground, weak.

5. Identify key strategic issues related to the external environment that will have a
significant impact on your business.

IV. INTERNAL/COMPANY ANALYSIS

A. Review the company’s performance in terms of key performance indicators:

1. Revenue/sales in the past three years

2. How the company’s growth compares with industry growth or vis-à-vis the other
players?
3. Profitability, other relevant performance indicators
4. Applicable financial ratios
5. Value Chain Analysis

B. Do an organization diagnosis using the following tools:

1. David’s functional audit to assess the different functional areas of the

organization
2. BCG Portfolio analysis

C. From the above, identify the company’s major strengths and weaknesses

D. Use the IFE matrix to evaluate the overall internal strengths and weaknesses of the
company

E. Summary and Conclusion

1. Identify the major financial and internal strategic issues that the company must
address
2. Identify key organizational elements that may hinder or promote growth and
productivity.

V. STRATEGY FORMULATION

A. Use the different strategy formulation tools (SWOT Matrix, SPACE, IE, GRAND, and
QSPM) and other relevant analytical and matching tools to come up with strategic options
and directions for the company. Explain the results of your analyses.

B. Make sure that your analysis and positioning in the various matrices/cells are
consistent with the results of your external/industry and company analyses.

C. Do a summary and prioritization of the various strategies derived from the various tools.
Select the strategies that you will adopt to attain your objectives, and ultimately, your
vision.
VI. STRATEGY RECOMMENDATIONS AND ACTION PLANS

A. Strategic and Financial Objectives

1. Provide a clear statement of your strategic and financial objectives for the company or
business, for the next three years. It should state measurable objectives, e.g. market
position, sales or revenue growth, net income or profit level, profitability or rate of return,
etc. (Follow the SMART rule – specific, measurable, achievable, realistic, and time-
bound.)

2. Financial objectives: These can be stated in terms of revenue level and growth, and
productivity growth (cost effectiveness). Other financial objectives like net income, profit
margin, or other appropriate measures of financial performance of the industry / company
may be included.

3. Strategic objectives: These should define the major strategic thrust of the company. The
strategic objectives should consider the following:

a. It must support the company’s vision/mission in Chapter III

b. It must take into account the expected external/industry prospects as shown in the
external and industry analysis
c. It must take into account the company’s historical performance and current/expected
competencies and capabilities
d. It must be consistent with the results of your analytical tools under Chapter
VI. For example, an aggressive expansion strategy should show more aggressive
revenue growth while a “hold and maintain” position should show more moderate
growth for the company.

4. The time frame can be anywhere from three to five years hence, depending on the nature
of the business and the characteristics of the industry where it belongs.

B. Recommended Business Strategies and General Recommendations

1. This should provide a more specific and comprehensive discussion of your proposed
strategies consistent with the directions/generic strategies indicated by the strategy
formulation tools. Avoid generic and motherhood statements. The strategies should enable
the company or organization to achieve its objectives and address the strategic issues
identified in your external and internal analysis.

2. If you are dealing with several businesses or product types, you may need to group them or
come up with one set of strategies for each business or product type.

3. If you are diversifying into a new business but plan to maintain your existing or core
business, you need to specify a set of strategies for both the core and new business.

4. Include functional level strategies for the following areas: Marketing, Sales and
Distribution, Operations/Production/Manufacturing, Finance and Human Resources.
Additional Guidelines:

 Do not be constrained by the company’s current strategic plans or what you think will be
acceptable to the company’s management. What is important is that your recommended
strategies follow the logic of your external and internal analyses and your strategy
formulation tools and your own strategic insights.

 Make assumptions whenever necessary, but state these assumptions clearly.

 Ensure internal consistency of your strategic and action plans with the financial
plan/projections and actuals.

 While the Strategic Audit Report will be evaluated largely on the basis of its logic,
substance and content, it should be professionally done and written in formal style using
the correct grammar, spelling, choice of words, and proper format. In addition, all tables
and figures in the paper should be numbered for easy reference and should have appropriate
titles, with units of measures used and data sources indicated.
 Acknowledge and cite your references and data sources. Proper footnoting should be
followed. Note that the school enforces strict rules against plagiarism.
 Strategic Management Audit Report – Individual Project Rubric

Company: Date:

Place comments after each rating. Ratings (circle the appropriate numbers).

Below Above
CONTENT Poor Average Average Average Superior

1. Executive Summary 1 2 3 4 5
Brief but comprehensive overview of the presentation.
2. The company 1 2 3 4 5
History and evolution
Mission and major goals
Current strategies (corporate, competitive/business, and
functional)
Strategic consistency
3. Competitive Environment 1 2 3 4 5
Clear definition of the industry
Assessment of the most relevant forces/trends in the
global economic, political-legal, socio-cultural,
technological, and competitive environments
Analysis of the company’s competitive environment –
PESTEL
Porter Five Forces Model
Identification and evaluation of ethical challenges, social
responsibility, and legal challenges facing the industry
Thoroughness, accuracy, and depth of external analysis
(Opportunities and Threats):
EFE Matrix
CPM
4. Internal Strengths and Weaknesses 1 2 3 4 5
Thoroughness, accuracy, and depth of internal analysis:
BCG Matrix
Value Chain Analysis
IFE Matrix
5. Matching & analysis/Assessment of alternatives 1 2 3 4 5
Identification and evaluation of alternative strategies using
matrices:
SWOT Matrix
SPACE Matrix
IE Matrix
Grand Strategy Matrix

6. Recommended Strategies 1 2 3 4 5
Quality, quantity, feasibility, and relevance of
recommendations
QSPM
7. Implementation 1 2 3 4 5
Address specific implementation steps required in the
functional areas (marketing, finance, IS, HR, etc.)
Consider whether structural/cultural changes are
necessary.
 8. Evaluation 1 2 3 4 5
Recommend specific, comprehensive evaluation measures
to assess strategic choices and implementation.
Examples are: market share, customer satisfaction, cost
reduction, revenue increase, profitability, ROI.
9. Quantitative & Financial Analysis 1 2 3 4 5
Use relevant financial, statistical, and other quantitative
data to support the analysis of strategic performance.
Use historical and industry data for comparison.
Correctly interpret financial and other quantitative data.

10. Future Recommendations 1 2 3 4 5

This should provide a more specific and
comprehensive discussion of your proposed future
solutions consistent with the directions/generic
strategies indicated by the strategy formulation tools.

ORAL PRESENTATION SKILLS

1. Organization of presentation 1 2 3 4 5
2. Professionalism of presentation 1 2 3 4 5
3. Use of visuals and color 1 2 3 4 5
4. Communication skills of team 1 2 3 4 5
5. Use of time 1 2 3 4 5
WRITTEN COMMUNICATION SKILLS

1. Structure of the paper 1 2 3 4 5

2. Development of ideas 1 2 3 4 5
3. Logic of arguments 1 2 3 4 5
4. Grammar (spelling, word voice, sentence 1 2 3 4 5
structure, etc.)