Strategic Audit Steps & Legal Considerations

of 2
Capstone Experience in Integration & Strategy
©2012 Argosy University Online Programs
Interview: Brent Gleeson
Introducing Brent Gleeson, co-chief-executive-officer of
Internet Marketing Incorporated
Interviewer: We would appreciate your perspective regarding
preparing for and undertaking a strategic
audit to improve a company’s performance. One of the first
questions that come to mind is:
When an organization is preparing to undertake a strategic audit
to enhance the company’s
performance, what do you recommend as the initial steps?
B. Gleeson: When it comes to operations, you must consider the
following:
includes competition, market
trends, changes in customer base, etc.

what isn’t; every
company, in growth made, will outgrow existing systems and
processes multiple times
throughout the lifecycle of the business.
es the company have the right people in the right jobs:
Redefining job
responsibilities and potentially replacing team members with
better talent more
commensurate with the company’s existing products, services,
and clients
ing strategic plan and make sure
it is in line with the current
vision (1 year, 3 year, 5 year, or 10+ year); does the
organization currently have the
capabilities and talent to fulfill this vision; if not, how does the
organization ensure that
it does invest in the proper resources?
internally with employees
and externally with clients and projects?
When it comes to sales, consider:
es it
need to be adjusted to fit
the potentially revised operational or strategic plan?
develops new processes and
even products and services, how will this be integrated into the
sales plan?
What is the analysis of competitor pricing models, products,

and services?
Other things to analyze are:
he strategic
plan support the desired
financial projections
Interviewer: How have you approached this in your current or
prior organization(s)?
B. Gleeson: By performing the audit and putting new systems,
processes, and policies in place where
needed in order to properly support the revised strategic plan.
Page 2 of 2
Capstone Experience in Integration & Strategy
©2012 Argosy University Online Programs
2 Interview: Brent Gleeson
Interviewer: What do you find as the biggest challenge(s)? How
have you overcome these?

B. Gleeson: Identifying the root cause of internal inefficiencies
(is it people, systems, technology, all of the
above, some of the above, etc.). By performing a proper audit,
doing 360 reviews, getting
regular and transparent feedback from all team members,
etc…that is how we get to the root
cause and can then make the proper adjustments (that is, better
software, firing/replacing
people, and getting better systems in place).
Interviewer: How do you guide the process to achieve the best
possible results?
B. Gleeson: Developing a plan, putting trusted stakeholders in
place for various areas of responsibility,
regular communication and follow up, and accountability
processes.
Interviewer: What advice do you have for companies when
undertaking a strategic audit?
B. Gleeson: Take your time and do it right. Use anonymous 360
reviews with questions designed to
address what’s currently working, what isn’t, and what people
feel would be the best solutions.
Sometimes you will quickly find out that management may be
the root cause of various issues!
Interviewer: How have you ensured that the strategic audit leads
to a plan that is executable and will
achieve results?
B. Gleeson: Auditing properly, collecting data, analyzing data,

gaining insights that lead to actionable
plans, developing the plan, executing, and following through.
Required readings:
·
· From Managing human resources: Productivity, quality of
work life, profits (9th ed.), read the following chapters:
· The legal context of employment decisions
· Procedural justice and ethics in employee relations
· Safety, health, and employee assistance programs
Unit 3: Module 3 (Sep 12 - Sep 18)
Module 3 Overview
This module focuses on specific civil rights and labor laws that
govern HR policies and practices. You will also explore legal
and ethical issues based on a scenario.
In Module 1, we discussed the four forces that shape HR
strategies:
· Social
· Technological
· Economic
· Political
Federal, state, and local laws affect all of these domains, and
your understanding of legal and governmental mandates and
standards is vital to formulating a viable HR strategy.
Many legislative and legal constraints affect business policies
and HR planning. Understanding these issues can help avoid

financial and legal issues in the future. For example, is an
employee with diabetes who takes daily insulin protected by the
Americans with Disabilities Act (ADA)? The answer is yes (The
U.S. Equal Employment Opportunity Commission, 2008). If
your managers fail to understand the ramifications of this detail,
they could (even inadvertently) harass or otherwise discriminate
against an employee who may file a complaint with the Equal
Employment Opportunity Commission (EEOC). Your
organization then may incur legal expenses to defend or settle
the dispute, all of which could be very expensive.
We will examine some of the major federal laws that impact HR
on the following pages. You may also wish to explore the
resources provided by SHRM and ASTD for best practices and
benchmarks in civil rights and labor laws. HR professionals
could refer to these sources for talent management as well.
Strategic HR addresses legal and regulatory issues in terms of
planning and policy. It helps guide businesses and organizations
through red tape and encumbrances.
In the first assignment in this module, you will discuss the
federal, state, and local laws that drive HR policies, procedures,
and practices. The second assignment will be your first
Required Assignment of this course. You will identify ethical
and legal issues involved in a merger and develop a plan to
resolve these issues.
The U.S. Equal Employment Opportunity Commission.
(2008). The ADA: Your responsibilities as an employer.
Retrieved fromhttp://www.eeoc.gov/facts/ada17.html
Using the navigation on the left, please proceed to the next
page.
· Incorporate strategic human resource management principles
in the development of programs that meet organizational needs
and enable the organization to maintain a competitive
advantage.
· Distinguish between ethical and unethical behavior given

certain organizational circumstances (both domestic and
international) based on knowledge of basic employment law and
ethical principles.
· Recommend talent management strategies that support the HR
strategic plan and the competitive strategy of the organization.
Unit 3: Module 3 - Civil Rights Laws
Civil Rights Laws
Civil rights laws are federal statutes designed to protect races
and/or classes from behaviors (such as discrimination or
harassment) or barriers (such as systemic roadblocks to
advancement or physical access limitations) defined in the
statutes and acts. HR managers should be knowledgeable about
such statutes and acts and should consider the myriad provisions
of these laws while designing the HR strategy. Here are some
highlights.
Title VII of the Civil Rights Act of 1964
Title VII of the 1964 Civil Rights Act prohibits discrimination
against employees on the basis of “race, color, religion, sex, or
national origin” and applies to virtually all businesses in the
U.S. except for those with fewer than 15 employees. This act
established the Equal Employment Opportunity Commission
(EEOC), which is responsible for enforcing anti-discrimination

laws for employees as well as job applicants.
While violations can often be resolved through mediation
overseen by an EEOC representative, unresolved cases can go to
litigation and become extremely costly. Proper treatment of
candidates and employees, complete documentation of the
hiring process, and ongoing maintenance of personnel records
can be significant factors in the prevention of violations, which
can cost organizations time, money, and their reputation.
You can learn more about this act and the EEOC
athttp://www.eeoc.gov/laws/statutes/titlevii.cfm.
http://www.eeoc.gov/federal/training/index.cfm
Age Discrimination in Employment Act of 1967
The Age Discrimination in Employment Act of 1967 (ADEA)
protects workers over 40 from discrimination in terms of hiring,
firing, pay, promotions, or layoffs, and applies to businesses
with 20 or more employees. Those who feel they have
experienced such discrimination must file an EEOC claim
within 180 days. You can find more information about this act
athttp://www.eeoc.gov/laws/types/age.cfm.
Title II of the Genetic Information Nondiscrimination Act of
2008
Title II of the Genetic Information Nondiscrimination Act of
2008 (GINA) prohibits employers from using genetic
information to discriminate against employees or job applicants.
While it may seem that genetic information would be protected
under certain privacy laws, there are legitimate ways that an
employer may become aware of such information (overhearing a
conversation or acquiring DNA data due to the nature of certain
law enforcement jobs). Even if an employer possesses such
genetic information, the company cannot use it in making
employment decisions. You can learn more about GINA
at http://www.eeoc.gov/laws/types/genetic.cfm.
Americans with Disabilities Act of 1990
The Americans with Disability Act of 1990 (ADA) is enforced
by the EEOC and prohibits discrimination of employees or job

applicants with disabilities in the workplace. The law prohibits
harassment of those with disabilities and requires employers to
provide reasonable accommodation to help a disabled person
perform job duties unless such accommodation provides undue
hardship to the employer.
While the ADA does provide definitions for “reasonable” and
“undue hardship,” what is reasonable varies among different
employers. Undue hardship for a small employer is likely
different from undue hardship for a large employer. This leaves
plenty of room for various interpretations, resulting in
complications in practice.
You can find more information about the ADA
athttp://www.eeoc.gov/laws/types/disability.cfm.
Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et
seq.
page.
Unit 3: Module 3 - Health and Safety (OSHA)
Health and Safety (OSHA)
The Occupation Safety and Health Act of 1970 established the
Occupational Safety & Health Administration (OSHA) within
the Department of Labor. OSHA’s mission is to “assure safe and

healthful working conditions for working men and women by
setting and enforcing standards and providing training,
outreach, education and assistance” (U.S. Department of Labor,
OSHA, n.d.). OSHA has legal authority through the government
legislative process to promote employee health and safety in the
workplace and also provide “whistleblower” protections for
workers who report unsafe working conditions.
It is easy to envision safety issues in heavy industry where
workers can be exposed to molten steel, toxic chemicals, lasers,
asbestos, under-ventilated mines or hot rivets at a skyscraper
construction site. But, office workers can also be exposed to
safety issues such as unsecured file cabinets, computer cables
taped across thresholds, wet floors, or icy sidewalks. There are
also physical health risks associated with repetitive stress
injuries, back strain, and air quality that many offices regularly
face.
HR strategy should consider and HR managers must be
knowledgeable about such safety regulations since these statutes
and acts may have a bearing on HR policy and procedures.
Employee injuries and even death are undesirable outcomes to
say the least. Aside from moral and ethical concerns and the
impact to morale, there are significant fines and legal
ramifications for ignoring safety issues.
You can learn more about OSHA at http://www.osha.gov/.
U.S. Department of Labor, Occupational Safety & Health
Administration (OSHA). (n.d.).About OSHA. Retrieved
from http://www.osha.gov/about.html
page.

Unit 3: Module 3 - Equal Pay Laws (Fair Labor Standards Act)
Equal Pay Laws (Fair Labor Standards Act)
Equal pay laws include federal statutes designed to provide
protection from illegal pay practices defined in the statutes and
acts. Here are some highlights:
· The Fair Labor Standards Act of 1938 (FLSA) initially
established the maximum number of hours in a workweek and a
minimum hourly wage as well as established overtime pay for
certain jobs and limits on child labor. The act has been amended
over the years to increase the minimum wage, lower the
maximum number of hours in a workweek, and establish equal
pay provisions for women.
· The Equal Pay Act of 1963 makes it illegal to pay women less
than men for the same job.
· The Migrant and Seasonal Agricultural Worker Protection Act
of 1983 includes provisions about wages and working
conditions for migrant farm workers.
knowledgeable about such statutes and acts since they have
bearing on HR policy and procedures.
These acts are administered by the Department of Labor. Just as
with other federal statues we have discussed so far, failure to
comply with these regulations can often result in legal action
which can involve back pay from the time of the infraction. You
can learn more about the fair labor regulations
athttp://www.dol.gov/whd/flsa/.
Equal Pay for Women
There is an ongoing debate over the issues of equal pay for
women. Advocates for additional legislation argue that a pay
gap exists between what men and women can earn over their

working lifetimes. Opponents argue that the lifetime disparity
has more to do with women taking time off (sometimes for
many years) to raise families, care for elderly parents, or pursue
other interests. A recent development was the passage of the
Lilly Ledbetter Fair Pay Act of 2009 which addresses the 180-
day filing limit of a complaint. The new law amends the 1964
Civil Rights Act and other related statutes to state that the 180-
day filing limit resets with each paycheck that has been subject
to unequal pay discrimination. As such, women, such as Lilly
Ledbetter, who discover that they have been unfairly paid for
years, can still find a remedy even though they did not file a
complaint within the 180-day filing limit of the initial unequal
paycheck.
In the specific lawsuit initiated by Lilly Ledbetter under the
1964 Civil Rights Act, she claimed that she only discovered her
pay inequity shortly before her retirement, which is why she did
not file a complaint within the initial 180-day period following
the first paycheck in question, some 20 years earlier. The
Supreme Court eventually ruled against her in 2007 because the
statute clearly stated the 180-day limitation. The new law
establishes a revised time limitation indicating that the 180-day
limitation is not limited to the initial unfair paycheck, but
essentially to the most recent one. In other words, if a woman
discovers that she has been unfairly paid over a long period of
time, she can still file a complaint within 180 days of her most
recent “unfair” paycheck. It may be worth pointing out that Ms.
Ledbetter was never able to obtain back pay or damages because
of the Supreme Court ruling in 2007. But, her continuing efforts
on this issue resulted in Congress changing this single provision
which removes a barrier to women seeking equal pay. You can
access the statute
at http://www.govtrack.us/congress/bills/111/s181/text.
page.

Unit 3: Module 3 - FMLA
FMLA
Another act administered by the Department of Labor is the
Family and Medical Leave Act of 1993 (FMLA), which entitles
eligible employees defined in the law to unpaid job-protected
leave for specific reasons including the following
circumstances:
· The birth or adoption of a child
· The care of a family member with a serious health condition
· The care of oneself due to a serious health condition
· A qualifying emergency
Employees covered under this law and approved for such unpaid
leave cannot be removed from their jobs during the leave. The
FMLA also includes other provisions such as break time for
nursing mothers and special rules for returning military
reservists.
knowledgeable about FMLA provisions in order to fairly
administer the law and comply with its detailed provisions.
· You can access news and information about compliance
athttp://www.dol.gov/whd/regs/compliance/ca_main.htm.
· You can access the text of the law
athttp://www.dol.gov/whd/regs/statutes/fmla.htm.
page.

Unit 3: Module 3 - Labor Relations Laws
Labor Relations Laws
The National Labor Relations Act of 1935 (also known as the
Wagner Act) protects private sector workers as they engage in
collective bargaining or engage in work stoppages such as
strikes. The act also established the National Labor Relations
Board (NLRB) as an independent agency responsible for
conducting labor union elections and investigating claims of
unfair labor practices. The NLRB also facilitates settlements,
adjudicates specific cases, and enforces its orders through the
US Court of Appeals when voluntary compliance does not
occur.
Labor unions have a long history in the U.S. and were initially
focused on large industries such as steel, mining, railways,
automotive and other manufacturing, and longshoremen. There
are also unions for communications workers, teachers,
musicians, professional athletes, health workers, electricians,
carpenters, actors, and public employees. Union negotiated
contracts not only focus on wages and benefits, but also on
working conditions and practices. In most cases, negotiated
improvements in benefits and other working conditions are
extended to non-unionized employees as well.
HR managers in organizations that include union members must

be fully aware of fair labor laws and all aspects of the
negotiated contracts especially as they apply to HR policy and
procedures. But, even those organizations that do not include
union members must be aware of both employer and employee
rights and responsibilities if there is an attempt to organize
employees.
You can learn more about the National Labor Relations Act and
the NLRB athttp://www.nlrb.gov/.
page.
Unit 3: Module 3 - SOX (Whistle Blowers)
SOX (Whistle Blowers)
The Sarbanes-Oxley Act of 2002, typically referred to as SOX,
is enforced by the Securities and Exchange Commission (SEC).
The law requires all publicly traded companies in the U.S., as
well as management and accounting firms, to certify the
accuracy of their financial information. The law also provides
extensive protection for employee whistleblowers and includes
the following key provisions:
· The law requires publicly traded companies to create internal
and independent audit committees as well as establish
confidential whistleblower complaint procedures.
· The law established ethical standards for attorneys who appear

before the SEC.
· The law criminalizes retaliation against whistleblowers for all
employers, not just those employed by publicly traded
companies.
· The law establishes the authority of the SEC to enforce every
part of the statute.
You can access the text of the law
at http://www.sec.gov/about/laws/soa2002.pdf.
knowledgeable about such the Sarbanes-Oxley law, particularly
the whistleblower provisions as they apply to HR policy and
procedures.
page.
Unit 3: Module 3 - Health Reform
Health Reform
One of the most sweeping pieces of legislation that addresses
the financing and delivery of healthcare is the Patient Protection
and Affordable Care Act of 2010 (United States Government,
2010). This law, frequently referred to as the ACA or health
reform, is designed to increase access to health coverage for
uninsured Americans, as well as provide new protections for
people who have insurance but were unable to obtain coverage
for a preexisting condition such as cancer. Some of the law’s

provisions became immediately effective while others have
effective dates up to and including 2015. You can see a timeline
showing “what changes when”
athttp://www.healthcare.gov/law/timeline/index.html.
The ACA addresses a broad scope of issues including healthcare
access and affordability, the financing of government healthcare
programs, preventative care and public health, medical
technology, and the reauthorization of the Indian Health Care
Improvement Act. There are significant provisions applicable to
both small and large businesses as they meet the requirement to
provide employee access to health insurance. There are also tax
implications for all businesses as well as a requirement for
employers to report the cost of coverage under an employer-
sponsored group health plan on each employee’s W-2 form
beginning in 2012. Reporting the cost, however, does not mean
that the coverage is taxable.
The ACA poses challenges to HR managers as they seek to
explore its full impact on policies and procedures. This is
further complicated by the fact that rules and regulations
continue to be formulated by the Department of Health and
Human Services (HSS).
· The government Web site HealthCare.gov (maintained by
HSS) provides extensive information including specific pages
for employers athttp://www.healthcare.gov/using-
insurance/employers/index.html.
· You can access the complete text of the law
athttp://www.gpo.gov/fdsys/pkg/BILLS-
111hr3590enr/pdf/BILLS-111hr3590enr.pdf.
· The Department of Labor Web site also provides extensive
information useful for businesses to comply with the law and its
myriad provisions:http://www.dol.gov/ebsa/healthreform/.
· The Henry J. Kaiser Family Foundation Web site also provides
extensive information, research, and
analysis: http://healthreform.kff.org/.
United States Government (2010, March 23). Public Law 111–
148 111th Congress: An Act Entitled The Patient Protection and

Affordable Care Act. Retrieved
fromhttp://www.gpo.gov/fdsys/pkg/PLAW-
111publ148/pdf/PLAW-111publ148.pdf
page.
Unit 3: Module 3 - State and Local Laws
State and Local Laws
So far, we have examined important federal employment laws.
However, each state and many municipalities also have
employment laws. State and local regulations cannot supersede
federal law, but they can clarify or further constrain the
resolution of a case or complaint. Additionally, state and local
laws can vary widely, which adds additional complications to
those employers with locations in multiple cities or states.
Consider these examples:
· Some states and local municipalities impose income taxes,
which require employers to maintain careful records so that
taxes are deducted from applicable income.
· Some states have a “right to work” law, which means that
employees are not required to join a union in order to be hired.
· Some states have unique safety and labor laws that add
conditions to federal employment laws.
· Some states have alternative dispute resolution choices for
labor negotiations that add to federal employment laws.

The Department of Labor provides links to state labor offices as
well as to a variety of state fair labor practices
at http://www.dol.gov/whd/state/state.htm. For example, you
can display summaries as to how various states regulate child
entertainment occupations or door-to-door sales by minors.
International laws may also have a bearing on the HR strategy
with an increasing number of employers choosing to operate
internationally as well as nationally. Laws in various countries
can differ drastically and present additional challenges and
responsibilities to those charged with compliance. Because of
these layers of complexity, employers often find compliance
difficult. A lack of awareness, constant changes, variability in
interpretation, and lack of clarity can all contribute to
noncompliance, subjecting employers to penalties.
The first step in avoiding these issues is to develop an
awareness of relevant federal, state, local, and even
international laws to determine how such laws affect your HR
policies and procedures. This is followed by the process of
identifying resources and maintaining current knowledge of the
laws and their interpretation.
page.
This module is designed to help you review, assess, and apply
resources and tools that support development of an effective
strategy. You will study a number of strategy planning tools and

techniques in the assigned readings and apply them in your
assignments. The tools discussed in this module are used by
leaders and leadership teams in for-profit and not-for-profit
organizations. They are performance measurement tools as well
as planning techniques. You will get a chance to plan and use
these tools in the assignments for this module.
· Synthesize a wide variety of economic, financial, and
qualitative data to draw actionable managerial conclusions that
convince others of your position and analytical conclusions.
· Identify actions that effectively integrate the primary business
disciplines cross functionally to move the organization toward
its mission and strategic goals, while being consistent with
professional standards, social norms, and corporate ethics.
Unit 2: Module 2 - Key Concepts in this Module
Key Concepts in this Module
· Environmental scanning/SWOT—The proposition behind the
SWOT methodology is to allow an organization to assess its
strengths, weaknesses, opportunities, and threats that will
impact the business. When implemented in tandem with
environmental scanning (that focuses on what is going on in the
marketplace) and the economy, a SWOT can help an
organization shore up its position in the marketplace.
Ultimately, it is how the organization responds to the data and
the subsequent actions that dictate the value of environmental
scanning and SWOT.
· Five forces analysis—Porter developed the five forces analysis
process which includes exploring the threat of new competition,
understanding the threat of substitute products or services, the
bargaining power of customers (buyers), the bargaining power
of suppliers, and the reality of the level of intensity of
competitive/industry rivalry.

· Value chain analysis—This tool encompasses analyzing direct
and indirect activities that generate and deliver a company’s
product or service to its customers. The analysis assesses each
activity’s contribution to the competitive proposition through
cost or differentiation. The analysis also explores any
disadvantages. The culmination of information provides insight
on informing the strategy.
· Performance analysis/benchmarking—The purpose of
benchmarking is to establish a reflective point to compare
against. For example, a company may send out a customer
feedback survey asking for input on its service. If the company
receives an average rating of a 3 on a 5-point Likert scale, it
may create a plan/initiative to improve this to secure a higher
satisfaction rating of 4 over a period of time. The benchmark is
3 internally, and they may also choose to look at industry data
on similar companies/organizations and benchmark against
industry averages. This is one tool often used to help
organizations to concretely measure the results of initiatives.
· Strategic issues—Strategic issues often develop as a result of
misaligned internal capabilities and external trends. This often
prevents pursuing the right opportunities and not paying
attention to marketplace (external) conditions that may threaten
viability of the organization. Strategic reevaluation on a regular
basis can help prevent strategic issues from popping up. Using
environmental scans, SWOT analysis, and Porter’s five forces
analysis can help reveal issues and provide ways to address
them.
Porter, M. (1996). What is strategy? Harvard Business Review
74(6), 61–68. Retrieved
from http://www.ipocongress.ru/download/guide/article/what_is
_strategy.pdf
page.

Unit 2: Module 2 - ABC Case Study—Evolving the Strategy
ABC Case Study—Evolving the Strategy
Organizations may choose different strategic approaches
including the following:
· Retrenchment strategies focus on tightening the belt (i.e.,
reducing operating costs and divestment of noncore assets).
This often occurs in hard economic or recessionary times.
· Investment strategies involve expenditure on innovation and
market diversification. These approaches are often short-term
and focused to make fast adjustments. They can also be risky
when balanced with long-term strategies.
· Ambidextrous strategies are exactly as the word suggests—a
combination of retrenchment and investment. These approaches
have inherent short-term benefits as well as some long-term
risks.
One of the most famous company strategy moves was when, in
the 1980s, Coke changed its formula in its Coca-Cola drink to a
sweeter taste. The company did a huge market test complete
with a large number of taste tests that were positive. The
company invested in a large marketing campaign based on the
taste tests. However, the general public was not impressed with
the new flavor nor the marketing campaign. Coke classic was
reintroduced in an ambidextrous strategy in terms of retrenching
and investment. As you can see, performance analysis does not
always work.

Truly, it is about assessing which strategy is best for the
organization. ABC eLearning’s management attributed the
company’s growth and success to the following, using a general
to specific and measurable approach:
· Developing a strategy—This allowed for flexibility and
included critical factors such as core business, marketplace
needs/trends/demands, economic indicators for industry growth,
and the ability to build in channel partners and easily expand
the business beyond its core services.
· Executing the strategy—This covered what, who, and how the
plan would be executed. It also covered the clear metrics
established each fiscal year that would demonstrate the strategy
was executed properly and was working.
Although ABC was set up in 2003, developing the strategy was
an evolving process. The leader of the organization came across
and referenced Change by Design by Tim Brown as a resource
that helped articulate one of the efforts within the organization.
The leader found the following points particularly inspiring:
· Do not look at things like a problem, look at them like a
project to work on and improve.
· Use cross-functional teams within the organization to
innovate, ideate, implement, and keep evolving.
Brown, T. (2009). Change by design: How design thinking
transforms organizations and inspires innovation. New York,
NY: Harper Collins.
page.

lthough one would perceive the activities defined in this course
as consistent practices derived from common sense, it is
surprising how often organizations will skip the basics (i.e., a
thorough five forces analysis of the industry; key factors and
trends in any other areas affecting the industry; and a SWOT
analysis that considers internal and external factors).
Basic fundamental processes are neglected as companies try to
become agile, innovative, and creative. The US automobile
industry of the later part of the twentieth century is an example.
In many of the automobile companies, quality control processes
were sacrificed for sales and marketing techniques. The
fundamentals of the production model were forfeited for
perceived financial gain at the cost of reputation and long-term
sustainability.
The ABC eLearning company did not skip all the basics, but
they also did not dive in or address elements of all the basics
that could have prevented some of their early missteps. One
specific element was based on a better understanding of the
external environment compared to capabilities to support an
expanding customer base with competing affiliate requirements
(i.e., who is the priority, whether it is the affiliate that pays
very little for the services but keeps the lights on, or the new
external customers that pay more and offer more opportunity for
increased growth). This example reiterates the importance of
always starting with a solid foundation and addressing the
fundamentals around internal and external balance, as well as
market position and priority.
Building on Fundamentals
Organizations that stay true to the fundamentals consistently
yield better results and can catch and remedy marketplace
decline faster than their competitors. Jim Collins (2009) wrote
about this to some degree in How the Mighty Fall and Why
Some Companies Never Give In. Although leadership and
leadership decisions play a key role, the essence includes
staying true to the basics as a foundation for success. This is

akin to why Porter’s five forces analysis is still considered a
useful resource or tool in business.
http://tutor2u.net/business/strategy/Strategic_audit.htm
Collins, J. (2009). How the mighty fall and why some
companies never give in. New York, NY: Harper Collins.Unit 2:
Module 2 - Keeping the Organization on Track
Keeping the Organization on Track
Most successful organizational leaders can quickly share what
they believe are their strengths, weaknesses, opportunities, and
threats. This is a sign that they are paying regular attention to
what is influencing their business and business results.
However, the key is how they proactively manage or react to
address these in a way that keeps the organization on track with
its goals. Consider this as you work on the assignments for this
module.
For example, Glaxo’s board wanted its chief executive officer
(CEO) to launch a new line of products in a new market. The
CEO decided the new ventures need to be integrated into the
company’s strategic plan. The CEO met with key leadership
staff and did a SWOT analysis exercise to identify internal and
external forms and forces. The CEO then used the SWOT
findings to guide the development of goals and objectives for
the new ventures that aligned with the company vision and
mission. The findings also showed what kind of resources and
forms and forces would be needed and accounted for. The
SWOT findings can be operationalized and measured against.
In the assignments,you will review factors and trends that
influence strategy development as well as conduct an external
environmental scan of your business unit.

Strategic Audit Steps & Legal Considerations

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