Strategic audit of Asics Corporation Research Paper

Strategic audit of Asics Corporation - Research Paper Example It entails evaluating a corporations’ performance measured against its overall corporate (and business) strategy. Companies initiate strategic audits in situations where there is a disparity between its corporate performance and its strategic corporate goals. The corporate and business performance of a corporation is affected by both internal and external factors as well as the activities of competitors within the same industry. A strategic audit is an important tool for company managers and boards to pinpoint problems and hurdles preventing the achievement of their corporate strategic plans. This paper will evaluate the corporate performance of Asics Corporation by appraising the external factors, internal factors, the industry it operates in and its competitors. It will also draw conclusion and strategic recommendations based on the analysis done. Literature review Institutions are unable to discharge their corporate governance duties effectively until the boards concerned fully take ownership of the organizations’ strategy by conducting thorough audits much in the same way that financial audits are done (Rabate, 2007). Strategic audits are therefore indispensable tools for helping management and boards make competent and sound decisions about the firm in order to achieve its strategic plans. The performance of an organization in achieving its corporate plans are affected by both internal dynamics such as management, business strategies and key decisions for instance on production methods. External factors that include economic, political, and environmental as well as demographics affect the company’s performance. In evaluating internal factors, the age of the firm, its production processes and competencies, strategy, competencies and strategies in marketing and its management will be the centre of focus. This will be done using b usiness tools of SWOT analysis and PESTEL analysis. SWOT means Strengths, Weaknesses, opportunities and Threats and evaluates both the internal and external environment in which a firm operates. SWOT utilizes an integrated approach in auditing a firm and is one of the most useful and widely used tools to evaluate an organization logically, and if properly used is an important strategic planning tool (Ferrell & Hartline, 2008). External PESTEL on the other hand stands for Political, Economic, Social, Technological, Environmental, and Legal factors as they affect an organization and this mainly evaluates a firms’ external operating environment (Lorat, 2005). Political factors affecting Asics Operating globally in different political environments requires Asics to adapt and abide by business and corporate regulations in countries it has presence in like North America and Europe. These are in terms of taxes to be paid and business regulations. Economic factors affecting Asics For eign exchange fluctuations greatly affect Asics financial performance, for instance in 2008, its third quarter performance was lower than expected due to large swings in foreign exchange rates. This for instance saw its shares falling by 15 percent (Hall, 2008). The global financial crisis saw its 2010 earnings and revenue fall compared to 2009, after a three-year period of steady rise in revenues (â€Å"Financial Times†, 2012). Social factors The world’s populations are beginning to put greater effort into their health and fitness,