Definition of the Strategic Audit - Case Study Example

 As it suggests, a strategic audit is an evaluation of a company’s strategy. A strategic audit is a broad term that involves all aspects of an organization’s strategic inclination. As a result, it incorporates resource, performance, value chain, core competence, SWOT, and portfolio analyses. A strategic audit is a valuable tool in many situations. For example, according to Hitt, Ireland and Hoskisson (2014), it can be used to improve delivery in case performance metrics show that a strategy is ineffective or counteractive (Hitt, Ireland & Hoskisson, 2014).

It can also be used to assess whether or not high-priority objectives in the strategic plan are being achieved. In some cases, especially large organizations that have complex processes and relationships, a strategic audit can be employed in monitoring changes in the external environment and providing clues as to areas that need improvement. For some firms, a strategic audit is an instrument for fine-tuning effective corporate strategies with the intention that it continues supporting minor internal and external changes that can occur.