Introduction Northcentral University’s –Executive Concepts in Business Strategy (2011) defines strategic management as “the process by which a firm manages the formulation and implementation of a strategy” (p. 1628). A strong strategic management plan involves 9 key elements: 1) Marketing 2) Workforce and operational management 3) Organizational Structure 4) International operations 5) Financial Accounting Management 6) Compliance and Legal Considerations 7) Internal control and evaluation 8) Information technology 9) Leadership. These elements are essential to not only establishing a firm business plan but revisiting and restructuring the details of this plan often will prove pertinent to longevity of the business. A company’s ability to sustain in the local or global market is determined by its ability to make necessary plans and adjustments within its respective market. This task can be accomplished with the development of the company’s business plan. A well-defined and structured business plan often includes positioning, planning, and investments. It is easy to forget that the business does not actually work itself and the dynamics of the management plan can often get lost in the everyday task of actually making the business work. Thus it is easy to understand how and why a plan of action is not immediately realized. However, a well-structured and implemented business management strategy can help to define and explain the objectives and activities involved in carefully placing all the elements of a business plan. Market Strategy The first major area of strategic planning is development of a marketing strategy. In the business world, marketing tends to be a means to an end. Marketing entails directly connecting to the c... ... middle of paper ... ...rganization. One of the key facets of implementing a sound internal control and evaluation process entails the incorporation of a knowledgeable auditing and compliance committee. Florea and Florea (2013) stated “the key role of internal audit is to assist the board and/or its audit committee in discharging its governance responsibilities” (p. 80). In other words, the importance of the internal control and evaluation process is the ensure compliance with corporate governance and procedures. A knowledgeable and empowered internal controls and evaluation system can prove instrumental. In fact, Florea and Florea (2013) claims that “strategically positioned internal auditing system can contribute to increased business performance (p. 81). Florin and Carmen (2013) also asserts that there may be a direct relation between strategic management and employee performance.
In conclusion, internal controls include separation of duties, assignment of responsibilities, third-party verification and the use of mechanical and physical controls. In and of themselves, these tactics stop and prevent much abuse of the bookkeeping and accounting systems. The addition of Sarbanes-Oxley requirements in 2002 require that a company enact internal controls and assign responsibility of the control system to executives and directors, further providing insurance that financial reporting is accurate. Without this insurance that reports are accurate, company stock will fall and investors will be lost. Even with intrinsic limitations, the positive aspects of good internal controls far outweigh the negative implications. Good internal controls equal accurate financial records and future company success.
Our suggested strategy emphasizes on our effort to launch BT as a potential ¡¥active member¡¦ in the economical and social life of the country, in contradiction to the characterisation of the past as a ¡¥public enemy¡¦ from the press. Our planning is based on an analysis of the customer¡¦s future requirements, as well as the current needs in comparison to the past. Major role at this planning plays the succession process from one time sector to the other. The philosophy of our strategic business plans is to bridge the gaps between past, present and future, having as a result a limitation of available time to our competitors to attack to our market share while we remain idle. Our proposals include a ¡¥bouquet¡¦ of changes, improvements and alternative solutions (segmentation planning, direct marketing campaigns), targeting in the creation of a competitive advantage through Relationship Marketing and flexible Marketing Strategy with the wide use of Direct Marketing techniques, in order to attribute to the loyalty strategy of BT and also create some barriers which will protect the BT¡¦s market share and leading positions ...
Pearce II, J. A., & Robinson, R. B., Jr. (2009). Strategic management: Formulation, implementation, & control (11th Ed.). New York, NY: McGraw-Hill/Irwin Companies.
Strategic planning is a critical process for any successful business. It outlines the framework in which the organization operates. Therefore, each area of the process should be carefully considered and developed, with the understanding that some areas are relatively static, whereas other areas change and grow depending upon the environment. By far, the most important part of the strategic planning process is its implementation. If the process is never implemented, its development is just wasted energy.
The purpose of internal auditing and the professionals who provide internal auditing services according to the definition created by the Institute of Internal Auditors is to provide “an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.” Several guidelines and processes have been created to aid an internal auditor in providing the objective, value adding services they’re supposed to. The International Professional Practice Framework is the compass that provides internal auditors
The companies will begin to implement its enterprise risk management system by developing an appropriate internal control and corporate governance system. In the wake of high-profile corporate scandals and subsequent regulatory legislation, reporting internal controls has become a requirement. These requirements have led to organizations viewing risk management as an area of vital importance.
For instance, through introducing a disciplined approach IA can enhance and assess the efficiency of risk management, control and governance processes. The requirement for establishment of IA differs from the requirement for external auditors. However, The UK Corporate Governance code demand all listed companies to obtain an IA department. In order to found an efficient internal audit department, there are several factors that must be considered. Therefore in this text we are going to discuss in brief some of the factors that Dust& Rolls ' finance director must consider prior establishing such department (Millichamp and
An audit of the internal workings is an assessment of the strengths and weaknesses. Conversely, the opportunities and threats is external, and a company must look outside for this, which there is less control (simmering, 2006).
It help an entity accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes”. The agency theory also provides a useful theoretical framework for the study of the internal auditing function. Proposes that agency theory not only helps to explain and predict the existence of internal audit but that it also helps to explain the role and responsibilities assigned to internal auditors by the organization, and that agency theory predicts how the internal audit function is likely to be affected by organizational change. Concludes that agency theory provides a basis for rich research which can benefit both the academic community and the internal auditing
According to the Institute of Internal Auditors (IIA) “internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”
Strategic management is concerned with a set of decisions and actions intended to improve the long-run performance of an organization (Boddy, 2009). It draws from the company’s will to adapt and survive in varying external and internal environments. Strategic management incorporates rationalization, planning ahead, setting clear goals, designing logical structures and monitoring systems for efficiency. It helps to determine a model of investment of resources, time, effort and capital. Thus it is a plan to reduce uncertainty about the future and to choose viable and potential solutions for growth.
Strategic planning is a group of processes and analysis and analytical processes that allow a company to understand where they are within their market, and create a clear path to their future. Companies usually have short term goals and have set some long term plans, these goals or plans should be a part of the mission statement. The mission statement should clearly state who the company is, what they do, why they do it, and what they plan on doing. Strategic planning assesses both long and short term goals within the planning process. There are three questions that all managers, no matter what organization or sector of the market, have to ask themselves:
The importance of business planning is vital as it creates opportunities for new employees, sets work methods and ethics. As well as creating a structured work diversity, bringing out the best in each employee. In order to help plan a business it all begins at the first step of creating a business plan, which ultimately helps the business achieve what they set out to do. Butler (2010) has stated that the important thing within a business is to remember that a business plan will not automatically result in producing high levels of profit or create a prosperous business. The business plan acts as a mechanism to demonstrate the gradual progress at work and can be monitored, therefore businesses are able to respond to any future problems or modify any parts of their business. Within the business plan, organising the bu...
“A strong internal control system which includes an independent and efficient internal audit function contributes to an efficient and reliable governance”. (Andrei, 2015). Corporate governance is defined as “the ways in which suppliers of finance to corporations assure themselves of getting a return on investment. (Hamza, T., & Mselmi, N.,2017) In an effort to accomplish a stronger system, the Institute of Internal Auditors created a new concept called the “three lines defense model.” (Andrei, 2015) With this model, the first line of defense consists of the management and support functions. The second line of defense is the control function. Finally, the third line of defense is the internal audit function, which “verifies all the other control functions and to give assurance over the internal control system in place.” (Andrei, 2015) The Institute of Internal Auditors or IIA regulate internal auditors with a set of standards called the International Standards for the Professional Practice of Internal Auditing. The IIA does not discriminate against companies who want to utilize outside sources to perform internal audits if it is done efficiently. “The IIA’s Code of Ethics requires internal auditors to evaluate information objectively, while not being unduly influenced by their own interests.” (Stefanick, Houston and Cornell, 2012) On the other hand, “the IIA believes that oversight and responsibility for the
The key role in solving strategic tasks belongs to strategic planning, which is the process of developing and maintaining strategic balance between organization’s goals and resources in the changing market environment. The purpose of the strategic planning is to determine the most promising fields of activity providing its growth and prosperity. Strategic planning is a component of a broader concept “strategic management”. All four management functions (planning, organizing, leading and controlling), when talking about strategic management include strategic orientation. When viewing strategic planning from the highest level possible within a company, the planning function is the area that stands out as the most important area which involves a great deal of development and focus.