Strategic Audit

I. Current Situation * * A. Current Performance

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

B. Strategic Posture

1. What are the corporation’s current mission, objectives, strategies, and policies? Are they clearly stated or are they merely implied from performance? 2. Mission: What business(es) is the corporation in? Is the mission statement appropriate? 3. Objectives: What are the corporate, business, and functional objectives? Are they consistent with each other, with the mission, and with the internal and external environments? 4. Strategies: What are the current corporate, business, and functional strategies? Are they consistent with each other, with the mission and objectives, and with the internal and external environments? 5. Policies: What are they? Are they consistent with each other, with the mission, objectives, and strategies, and with the internal and external environments? 6. Do the current mission, objectives, strategies, and policies reflect the corporation’s international operations - whether global or multi-domestic?

II. Corporate Governance

A. Board of Directors

1. Who are the directors? Are they internal or external? 2. Do they own significant shares of stock? 3. Is the stock privately held or publicly traded? Are there different classes of stock with different voting rights? 4. What do they contribute to the corporation in terms of knowledge, skills, background, and connections? If the corporation has international operations, do board members have international experience? 5. How long have they served on the board? 6. What is their level of involvement in strategic management? Do they merely rubber stamp top management’s proposals or do they actively participate and suggest future directions?

B. Top Management

1. What person or group constitutes top management? 2. What are top management’s chief characteristics in terms of knowledge, skills, background, and style? If the corporation has international operations, does top management have international experience? Are executives from acquired companies considered part of the top management team? 3. Has top management been responsible for the corporation’s performance over the past few years? How many managers have been in their current position for less than three years? Were they internal promotions or external hires? 4. Has it established a systematic approach to strategic management process? 5. What is the level of involvement in the strategic management process? 6. How well does top management interact with lower level managers and with the board of directors? 7. Are strategic decisions made