Page 36 - The Indian EYE 030725

Business Strategy with Hirav Shah FEBRUARY 28, 2025 | The Indian Eye 36

Did you ever do a strategic audit to distinguish

your business from competitors? Let’s Learn Today

strategic performance.
3. Analyze the Data: Conduct a thor-
ough analysis of both internal and
external environments. Use tools
such as SWOT, PESTLE, and com-
petitive benchmarking to identify
strengths, weaknesses, opportuni-
ties, and risks.
4. Evaluate Strategic Alignment:
Assess whether the company’s
current strategies align with its
long-term goals. Are the strate-
Hirav Shah gies driving progress toward the
mission and vision? Identify areas
strategic audit typically in- of misalignment that may require
cludes several key areas of fo- adjustments.
A cus, each critical for ensuring Review your financial data, such as profit margins, return on investment (ROI), and cash flow. Eval- 5. Develop Actionable Recommenda-
that the business strategy is compre- uate how well the financial performance aligns with strategic objectives (Representative/File photo) tions: Based on the audit findings,
hensive, relevant, and effective create a set of actionable recom-
What is a Strategic Audit? 1. Mission, Vision, and Objectives: gins, return on investment (ROI), mendations. These should focus
• A strategic audit is a comprehen- Evaluate the company’s mission and cash flow. Evaluate how well on improving strategic alignment,
enhancing execution, addressing
sive evaluation of a company’s and vision statements to ensure the financial performance aligns weaknesses, and capitalizing on
strategy, including its processes, they reflect the business’s long- with strategic objectives. new opportunities.
objectives, and execution. term aspirations. Review specific 7. Marketing and Customer Strat-
• It examines both internal and ex- business objectives and how they egy: Examine how well the com- 6. Implement Changes and Monitor
Progress: Put the audit’s recom-
ternal factors, such as the compa- align with the mission and vision. pany’s marketing strategies align mendations into action and estab-
ny’s strengths, weaknesses, market 2. Internal Environment Analy- with its overall objectives. Assess lish a monitoring system to track
position, and competitive land- sis: Conduct a SWOT analysis customer satisfaction, loyalty, and progress. Regular follow-ups and
scape. (Strengths, Weaknesses, Opportu- market penetration. Is the com-
• The goal of a strategic audit is to nities, and Threats) to assess the pany targeting the right audience, performance reviews ensure that
the changes are delivering the de-
determine whether the company’s company’s internal environment. and are customers responding pos- sired results and that the company
current strategy is aligned with its Focus on the company’s strengths, itively to the brand? remains agile in adapting to new
business objectives, whether it re- such as key resources and capabil- 8. Human Resources and Talent: challenges.
mains relevant in the current mar- ities, and its weaknesses, like oper- Evaluate the company’s talent
ket, and what improvements can ational inefficiencies. management practices, including Conclusion
be made. 3. External Environment Analysis: employee performance, leadership • A strategic audit is an indispens-
• In short, a strategic audit acts as a Perform a PESTLE analysis (Po- development, and organizational able tool for any business looking
blueprint for assessing the overall litical, Economic, Social, Techno- culture. Are the right people in the to refine its strategy, remain com-
health of a company’s strategy, en- logical, Legal, and Environmental right roles, and is there alignment petitive, and drive long-term suc-
suring that it is well-positioned for factors) to assess the external en- between human resources and cess. By systematically evaluating
future growth and success. vironment. Review market trends, strategy? a company’s internal and external
Why is a Strategic Audit industry dynamics, and competitor Steps to Conduct a Strategic environments, its market position,
and strategic execution, businesses
activity.
Important? 4. Competitive Positioning: Analyze Audit can identify strengths to leverage,
• Aligns Strategy with Business how the company compares to its 1. Define the Audit Scope and Objec- weaknesses to address, and oppor-
Goals competitors in terms of market tives: Before beginning the audit, tunities to pursue.
• Improves Resource Allocation share, pricing, product differentia- clearly define the scope. Will the • Conducting regular strategic au-
• Identifies Risks and Opportunities tion, and customer loyalty. Are you audit cover the entire business or dits enables companies to stay ag-
• Provides Data-Driven Insights outperforming competitors or lag- specific departments? Establish ile in a constantly evolving market
• Encourages Continuous Improve- ging behind? key objectives for the audit, such as and ensures that they remain on
ment 5. Strategy Execution and Implemen- assessing competitive positioning the path to achieving their business
• Enhances Stakeholder Confidence tation: Assess how well the compa- or evaluating operational efficien- goals. For companies committed
cy.
Key Components of a Strategic ny is executing its strategy. This in- 2. Collect Data: Gather all relevant to long-term growth and success,
cludes evaluating the effectiveness
a strategic audit is not just an op-
Audit of internal processes, leadership, data, including internal perfor- tion—it’s a necessity.
A strategic audit typically in- communication, and organization- mance metrics, financial reports,
cludes several key areas of focus, al structure in achieving strategic customer feedback, competitor The writer is a well known Business
each critical for ensuring that the objectives. analysis, and industry trends. The Turnaround Specialist, Astro Strategist,
business strategy is comprehensive, 6. Financial Performance: Review data should provide a comprehen- and BestSelling Author.
relevant, and effective. financial data, such as profit mar- sive overview of the company’s [email protected]

www.TheIndianEYE.com