Posted: April 9th, 2013

Strategic Audit for FORD

I.                    Introduction to the Organization – History of the Company & Current Status
A.      When was the organization founded, why and by whom? 
B.      Discuss unusual history associated with the organization.
C.      Is it privately or publicly held?
D.      Other information?
E.        
II.                  Analysis of the Macro-Environment
A.      What political/legal forces affect the industry?
B.      What economic forces affect the industry?
C.      What social forces affect the industry?
D.      What technological forces affect the industry?
E.      What are the threats and opportunities facing the organization?

III.              Identification of the Industry and the Competitors — Industry definition is necessary so that competitors can be identified; macro-environmental forces that affect the organization and its industry can be assessed, and the organization’s relative strengths and weaknesses can be compared to other organizations within the industry. 

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IV.                Analysis of the Industry
A.      Strategic Group(s) in which the company exists and competitors in it/them.
B.      Intensity of rivalry among existing competitors (Use Porters 5 Forces for B,C,D,E, & F)
C.      Threat of new competitors entering the industry
D.      Threat of substitute products or services
E.      Bargaining power of buyers
F.      Bargaining power of suppliers
G.      Potential Profitability of the Industry – What organizations have succeeded and failed in the industry and why?
H.      What are the Critical Success Factors for the industry?


V.                  What is the organization’s measurement and control system?
A.      Current financial position – Is the organization financially sound?
B.      Compare with competitors and standards.
C.      Use financial analysis tools.
D.      What are the organization’s Key Performance Indicators (KPI’s)?

VI.                Analysis of the Organization (Mission, Vision, Core Values, Operating Guidelines, Core Competencies, Goals)
A.      What is the mission of the organization? Has the mission changed over time?
B.      What is the vision of the organization?  Has the vision changed over time?
C.      What are the organizations core values and operating guidelines?
D.      What are the organization’s core competencies?  How are they unique?
E.      What are the organization’s broad and specific goals?

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VII.            Analysis of the Organization – Organization-Level and Business Unit Strategies
A.      What are the current organization-level strategies?  Business unit strategies?
B.      How are the strategies aligned with the goals?
C.      Compare this organization’s strategies with those of competitors. 
D.      Use SWOT analysis and Gap analysis to suggest strategies. 
E.      Evaluate strategies (advantages & disadvantages of each strategy).
F.      Key performance indicators (KPI’s)

VIII.          Analysis of the Organization – Functional Strategies
A.      Marketing – Finance – Operations – Purchasing – Human Resources – Information Systems
B.      How well are the functional strategies aligned?

IX.              Analyze organization’s improvement/change initiatives (e.g., Six Sigma, SQM, TQM, Lean Manufacturing, etc.)
A.      Previous & current impact/success of improvement initiatives.
B.      Alignment of improvement initiatives and integration into strategic management of the organization.
C.      Comparison of improvement initiatives with other organizations within and outside the industry.

X.                  Conclusion and Future of Organization
A.      Comment about the organization’s profile for future competitiveness and success.
B.      What does the organization have to do right to succeed (organization’s Critical Success Factors)?
C.      What are the expected results in terms of short-and long-term profitability and survival?

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