...STRATEGIC MANAGEMENT AND OPERATIONAL GUIDELINES A User Guide for Public Sector Auditors in the Pacific Developed by PASAI in 2012 Pacific Association of Supreme Audit Institutions (PASAI): Strategic Management and Operational Guidelines Pacific Association of Supreme Audit Institutions (PASAI) 2 Pacific Association of Supreme Audit Institutions (PASAI): Strategic Management and Operational Guidelines Foreword The purpose of these guidelines is to provide assistance for Pacific Association of Supreme Audit Institutions (PASAI) members, especially heads of SAIs and managers to carry out their functions strategically, tactically and operationally. They do this by introducing the basics of planning, examining the types of objectives and differentiating the types of plans consisting of the corporate plan, strategic plan, business plan and operational plan for the management of their offices. PASAI recognises the importance of having these strategic management plans as it is top level management’s responsibility to define the SAI’s positions, formulate strategies and guide long term organisational activities. This is one of PASAI’s initiatives aimed at developing SAIs within the region. The guidelines have been produced to assist PASAI members in the effective, efficient and economic planning and management of their resources annually and in the long term. It provides guidance to SAIs in establishing and enhancing their strategic management functions. The guidelines...
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...40 SU 1: Strategic and Operational Roles of Internal Audit QUESTIONS 1.1 Change Management 1. An organization's management perceives the need to make significant changes. Which of the following factors is management least likely to be able to change? A. The organization's members. B. The organization's structure. C. The organization's environment. D. The organization's technology. Answer (C) is correct. REQUIRED: The factor management is least likely to be able to change. DISCUSSION: The environment of an organization consists of external forces outside its direct control that may affect its performance. These forces include competitors, suppliers, customers, regulators, climate, culture, pol technological change, and many other factors. The members are a factor that managers are clearly Answe~(A) is incorrect. factor that managers are incorrect. The organiz I are clearly able to change. organization's technology' able to change. 2. Lack of skills, threats to job status or security, and fear of failure all have been identified as reasons that employees often A. Want to change the culture of their organization. B. Are dissatisfied with the structure of their organization. . C. Are unable to perform their jobs. D. Resist organizational change. Lack of skills, threats to job status or re inhibit changes in the culture of the (8) is incorrect. Lack of skills, threats to job status . rity, and fear of failure are not symptoms of dissatistacjion with the structure of the organization...
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...Overview of Strategic Management A Comprehensive Strategic-Management Model Strategy Evaluation Strategy Evaluation Strategy Implementation Strategy Implementation Strategy Formulation Strategy Formulation Measure and Evaluate Performance Measure and Evaluate Performance Implement Strategies – Marketing, Finance, Accounting, R&D and MIS Issues Implement Strategies – Marketing, Finance, Accounting, R&D and MIS Issues Generate, Evaluate, and Select Strategies Generate, Evaluate, and Select Strategies Implement Strategies – Management Issues Implement Strategies – Management Issues Establish Long-Term Objectives Establish Long-Term Objectives Perform Internal Audit Perform Internal Audit Perform External Audit Perform External Audit Develop Vision and Mission Statements Develop Vision and Mission Statements Strategic Management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Develop Vision and Mission Statements A vision statement should answer the basic question, “What do we want to become?”. A clear vision statement provides the foundation for developing a comprehensive mission statement. An enduring statement of purpose that distinguishes one organization from other similar enterprises, the mission statement is a declaration of an organization’s “reason for being”. It answers the pivotal question “What is our business...
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...Audit Week 2: Financial Statement Audits, Financial Statement Assertions and Audit Evidence Financial Statement Audit * A systematic process of objectively obtaining and evaluating evidence regarding assertions about the economic actions and events to ascertain the degree of correspondence between assertions and established criteria * Purpose: To enhance the degree of confidence of intended users in the financial statements by the expression of an opinion by the auditor Overall Objectives of the Auditor: * To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material aspects, in accordance with an applicable financial reporting framework * To report on the financial statements and communicate in accordance with the auditor’s findings Audit Process Overview: * Step 1: Client Acceptance and Retention * Step 2: Risk Assessment (Through understanding client business environment and operations Assess risks of material misstatement Assess Audit Risk) * Step 3: Audit Procedures Planning * Step 4: Test of controls (IF reliance on controls) * Step 5: Perform substantive tests * Step 6: Audit Completion and Reporting Financial Statement Assertions: * Assertions are representations made by management, explicit or otherwise, that are embodied in...
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...What is a Strategic Audit? A strategic audit is an examination of the strategic management process which includes measuring corporate performance internally and externally as is done when a manager benchmarks the practices of the best performers in the industry with the company’s best practices. There are many measures of performance that are can be used at the auditors discretion when performing this part of the audit which include ROI (Return on Investment), the firm’s market share, and its profitability for a period or over a period fo time. The strategic audit also includes a review of its current strategy, its resources, and the external environment to ensure that a firm’s internal resources are sufficient to match the external environment’s threats and opportunities. Following the firm’s performance an auditor performing a strategic audit would ask questions regarding corporate governance. For example, an auditor would like to know if any board member is sitting on the board of another or how long has a particular board member been sitting on the board for? The auditor would also like to know what group or persons constitute top management and if they are cohesive group of workers looking to benefit the company. During the third phase of the strategic audit an analysis of the firm’s strengths, weaknesses, threats and opportunities should be performed along with a summary of the auditor’s thoughts on what it sees the firm is doing well in and what the firm is struggling...
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...most do not survive past the Stage II phase of their cycle. The fluid nature of an enterprise’s business environment, both internal and external, require insight into the environment, the business’ position within it and it’s interactions with it. This is where strategic auditing becomes a powerful tool that can tell those driving the business what their capabilities are and how they fit in to the current market, while making strategic recommendations to help improve the company’s standing within that market. (As a side note, it is now clear to me that the entire course was basically a layout for the steps to be taken during a strategic audit.) Procuring all of the necessary information is the first step towards delivering a good strategic audit. A discerning audit identifies all of the resources available to a business, both human and in capital. Assigning proper value to each of these resources is a crucial step in formulating a plan. Looking at a company’s value chain through a Value Chain Analysis, one can discern the activities that take place in a business and break them down into both primary and secondary activities. These can then be turned into an analysis what activities can be outsourced and of the competitive strength of the business. Identifying core competencies followed by performance analyses help define the overall strategic performance of the company. Looking at how the business sees itself in relation to the marketplace is the next step. This involves...
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...Strategic management - the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives .Strategic management is used synonymously with the term strategic planning. Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation. Defining Strategic Management- A strategic plan is a company’s game plan. A strategic plan results from tough managerial choices among numerous good alternatives, and it signals commitment to specific markets, policies, procedures, and operations. Stages of Strategic Management = (strategy formulation, strategy implementation, Strategy Evaluations) Strategy formulation - Includes developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue. Strategy Formulation Deciding what new businesses to enter what businesses to abandon How to allocate resources whether to expand operations or diversify Whether to enter international markets whether to merge or form a joint venture How to avoid a hostile takeover Strategy implementation -- requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies...
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...SESSION 142BPMN 3023 STRATEGIC MANAGEMENTGROUP OCoursework 60% | 1. QUIZ - Critical Review of Strategic Issues - 10% | A. SHORT CASE STUDY 1 | 5% | B. SHORT CASE STUDY 2 | 5% | | 2. MID SEM EXAM - 20% | A. EXAM 1 | 10% | B. EXAM 2 | 10% | | 3. PROJECT REPORT / STRATEGIC AUDIT (GROUP ASSIGNMENT)- 20% | You are required to select Malaysia’s company in beauty and healthcare or restaurant chain industry.Please provide the information and do the analyses as follows: 1. Identify strategic issues or problems appear in organization’s current situation. 2. Analyze a company's internal and external environment and identify strategic long-term direction, its resources and competitive capabilities for crafting an appropriate strategy. You can analyze the strategic audit by analyzing the company’s internal and external forces as suggested below:Internal Forces: a) Company’s name b) Company’s type and the industry c) Vision, Mission, Objectives and Strategies – You are required to analyze a vision, mission and objectives of the organization and please discuss whether these statements fit with company’s stated strategies. d) The list of BOD e) The list of Top Management Team f) Organizational Structure – Please discuss the type of structure – is it relevant with current business operation? External Forces: a) Please analyze PESTE (Politic, Economy, Social-cultural, Technology, ecology which indirectly influence the related...
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...Framework for Enterprise Risk Management © 2013 Johnson & Johnson Contents Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 J&J Strategic Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 What is Risk?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 J&J Approach to Enterprise Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Governance & Oversight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . 2 3 Introduction In order to deliver value to our consumers, patients, caregivers, employees, communities and shareholders, we at Johnson & Johnson (J&J) must understand and manage the risks faced across our entire organization. Risks are inherent in our business activities and can relate to strategic threats, operational issues, compliance with laws, and reporting obligations. This document...
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...The following study is based on Orange’s corporate communication. Corporate communication is something which involves various types of management functions which are related to organization’s internal and external communications. Based on the organization, corporate communications involves public relations, advertising, technical communications, training and employee development, marketing communications, management communications, philanthropic activity, crisis and emergency communications etc. In Steyn's word, "Strategic management theory differentiates between enterprises, corporate, business-unit, functional and operational strategy. With reference to these strategy levels, corporate communication strategy is conceptualised as a functional strategy, providing focus and direction to the corporate communication function. Corporate communication strategy is seen to be the outcome of a strategic thinking process by senior communicators and top managers taking strategic decisions with regard to the identification and management of, and communication with, strategic stakeholders" (Steyn 2000a). 1.1 Discuss the purpose of corporate communication strategies. In simple words, for any organisation the main and basic purpose of corporate communication strategies is to achieve its corporate objectives. In the case of Orange, the scenario was a bit different with lot of difficulties in 1994 at the time of its launch. Because they were the last entrant in the market at that time and...
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...Introduction : Strategy and Strategic Management What is Strategy? Strategy is a plan, some kind of course of action which is deliberately taken, a protocol or set of protocols, to handle a situation. Strategy has a host of definitions in various fields. In management terms it can be a collective, comprehensive and organised plan. “Strategy can be seen as a multi-dimensional concept that embraces all of the critical activities of the firm, providing it with a sense of unity, direction and purpose, as well as facilitating the necessary changes induced by its environment”., Hax and Majluf (1991,p.2) The above definition by the authors proclaims that strategy is multi–dimensional and clings together all the resources and efforts in aiding the firm to bring about changes forced by the environment. Although the statement speaks about strategy being multi-dimensional, it is very general. According to Johnson, Scholes & Whittington (2009:3) Strategy is “the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations”. The definition above gives a better understanding of the term strategy than the one given Hax and Majluf. The statement by Johnson, Scholes & Whittington (2009:3) accords with the significance of direction and scope of the firm and also that strategy is a long term plan. Consideration is given to the fact...
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...Business Strategy Review Questions Chapter 1 The Nature of Strategic Management 1. Distinguish between long-range planning and strategic planning. Long-range planning is used to optimize for tomorrow the trends of today, whereas strategic planning is used to exploit and create new and different opportunities for tomorrow. 2. Compare a company’s strategic plan with a football team’s game plan. A strategic plan is, in essence, a company’s game plan. Just as a football team needs a good game plan to have a chance for success, a company must have a good strategic plan to compete successfully. 3. Describe the three activities that comprise strategy evaluation. The three fundamental strategy-evaluation activities are (1) reviewing external and internal factors that are the bases for current strategies, (2) measuring performance, and (3) taking corrective actions 4. How important do you feel “being adept at adapting” is for business firms? Explain. The strategic-management process is based on the belief that organizations should continually monitor internal and external events and trends so that timely changes can be made as needed. 5. Compare the opossum and turtle to the woolly mammoth and saber tooth tiger in terms of being adept at adapting. Students’ answers will vary, but students are likely to make the argument that those species that are adept at adapting are able to survive, while those that are unable to adapt are more likely to perish...
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...Summary 4 Introduction 5 The OHSAS 18001 standard: A literature review 5 The audit process: challenges and some propositions for improvement 6 Challenges 6 Propositions for improvement 7 Conclusion 8 Bibliography 9 Executive Summary This report is prepared to provide a brief description about the audit process of OHSAS 18001, which is a framework to effectively manage the Occupational health and safety policies including compliance with the legislation that applies to organization’s activities and identified hazards. As defined the objective of the standard is to have a clear management structure with defined authority and responsibility, clear objectives for improvement, with measurable results and a structured approach to risk assessment (Montero, Araque, and Rey, 2009).This also includes the monitoring of health and safety management failures, auditing of performance and review of policies and objectives according to the standard. In my previous organization in Bangladesh, we have started working towards qualifying for the OHSAS 18001 certificate and I was responsible as an internal auditor for the process. In this process, I also had the opportunity to work with the external auditor (certification audit). In the auditing process, I have monitored health and safety management failures, auditing of performance and managed to review of policies and objectives as suggested by the external auditor. In this report, some brief discussion has been made about the literature...
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...units within a company have to contend with attracting and retaining skilled employees. Internal audit is no different. The numerous career options available to new entrants and the seasoned audit practitioner make it imperative for audit managers to continually re-evaluate their approaches to ensure that the internal audit department is adequately staffed both in terms of numbers as well as skill sets to discharge its functions effectively. The IIA Attribute Standards / and Performance Standards are very clear and definitive on this: i) Attribute Standard 1210 - Proficiency Internal auditors should possess the knowledge, skills and other competencies needed to perform their individual responsibilities. The internal audit activity collectively should possess or obtain the knowledge, skills and other competencies needed to perform its responsibilities. ii) Performance Standard 2030 - Resource Management The Chief Audit Executive should ensure that internal audit resources are appropriate, sufficient and effectively deployed to achieve the approved plan. Professionalism Internal auditing is grounded in professionalism and efficiency. Today's internal auditors are a far cry from the 'fault finders' or 'policeman' role that the profession has long been associated with. Modern day internal auditors are routinely consulted on all aspects of the organisation's activities from strategic planning issues to the standard day-to-day operational issues relating to the risk environment and...
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