Strategic Audit – Business Evaluation Module #6

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In this module, based on all of the information gathered to date – and the evaluation of that information – we will look to create (and evaluate) several strategic alternatives designed to address the issues. This work will help to create the foundations of the Red Ocean and the Blue Ocean strategies in the Final Audit sections.

To accomplish this, please consider the following areas – and as always, if the table helps to structure your thinking, please feel free to use it (or don’t if another format works for you!).

A Word copy of the table file is also linked here … Alternative Development and Evaluation Table

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Alternative Development and Evaluation Table

For EACH Alternative …

• Determine the Corporate Level Strategy(growth, stability, retrenchment)
• Identify a Business Level (positioning) Strategy(low-cost leadership, differentiation, or focused low-cost leadership / focused differentiation)
• Identify and discuss the key/essential External Environmental Conditions (PESTIL) characteristics/conditions necessary to make this alternative a feasible reality
• Identify and discuss the key/essential  Industry characteristics/conditionsnecessary to make this alternative a feasible reality
• Create – and justify – Brief/Basic Pro-Forma Financial Statementsdepicting the INTENDED financial impact of the alternative (lowering costs, increasing revenue, diversifying revenue, etc.)
• Explain/justify (at a high level) the numbers
• Identify and discuss the Intended Prosof the Alternative
• Identify and discuss the Intended Consof the Alternative
• Identify and discuss the potential Unintended Pros/Consof the Alternative
• Identify and discuss the Top 5 Implementation Factors/Considerationsnecessary to execute the strategyIdentify and discuss the Top 5 Roadblocks necessary to overcome in executing the strategy
  • Identify who (generally) is responsible for these Factors/Conditions
  • Specify any policies/proceduresnecessary to ensure implementation (changes to hiring practices, promotional considerations, budgeting decisions, cultural aspects, etc.)
• Identify the Benchmarks/Metrics of ‘Success’for the AlternativeIdentify who (generally) is responsible to monitor these Benchmarks/Metrics
  • Identify who (generally) is responsible for overcoming these roadblocks
  • Specify any policies/procedures necessary to ensure elimination of the roadblocks (changes to hiring practices, promotional considerations, budgeting decisions, cultural aspects, etc.)

A point to keep in mind – and use if applicable.

Our text notes that is is sometime useful to create mutually exclusive alternatives – ones that if you follow that particular course of action, you can not follow the others. That tactic can be useful in keeping the alternatives straight and separate from each other – much like we looked to separate the pursuit of Red Ocean and Blue Ocean strategies in MGT 670!  Again, where this may be useful, proceed … but if you have three other great ideas – by all means propose (and then evaluate) those!

As always,  you may have determined other very critical questions to ponder for Amazon that are not on the list so be sure to add any additional thoughts that come to you – this is the last piece of information you’ll prepare before writing the audit!

Remember as well that the key is looking to critically analyze each and every aspect of the organization that we are looking at – and make an evaluative judgment …

• is this aspect good for the organization or not?
• Has it been valuable in the past – and if so/not, why?
• What is the potential of continuing or not this practice?
• What are the  short term and long-term implications?

Think through the answers to these questions – and then  logically organize your researched findings, your support, your evaluations, and your conclusions.

For EACH Alternative

• Determine the Corporate Level Strategy (growth, stability, retrenchment)
• Identify a Business Level (positioning) Strategy (low-cost leadership, differentiation, or focused low-cost leadership / focused differentiation)
• Identify and discuss the key/essential External Environmental Conditions (PESTIL) characteristics/conditions necessary to make this alternative a feasible reality
• Identify and discuss the key/essential Industry characteristics/conditionsnecessary to make this alternative a feasible reality
• Create – and justify – Pro-Forma Financial Statementsdepicting the INTENDED financial impact of the alternative (lowering costs, increasing revenue, diversifying revenue, etc.)
  • Explain/justify (at a high level) the numbers
• Identify and discuss the IntendedPros of the Alternative
• Identify and discuss the Intended Cons of the Alternative
• Identify and discuss the potential Unintended Pros/Cons of the Alternative
• Identify and discuss the Top 5 Implementation Factors/Considerations necessary to execute the strategy
  • Identify who (generally) is responsible for these Factors/Conditions
  • Specify any policies/procedures necessary to ensure implementation (changes to hiring practices, promotional considerations, budgeting decisions, cultural aspects, etc.)
• Identify and discuss the Top 5 Roadblocks necessary to overcome in executing the strategy
  • Identify who (generally) is responsible for overcoming these roadblocks
  • Specify any policies/procedures necessary to ensure elimination of the roadblocks (changes to hiring practices, promotional considerations, budgeting decisions, cultural aspects, etc.)
• Identify the Benchmarks/Metrics of ‘Success’ for the Alternative
  • Identify who (generally) is responsible to monitor these Benchmarks/Metrics

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Last Updated on April 25, 2020