Essay 1
Question: Describe 2 different strategies an organization might take and explain the pros and cons of that
strategy. Your essay should provide examples to support your reasoning for each strategy.
Parameters: Each essay should be written using APA formatting, must have at least 2 external sources
and a minimum length of 250 words for each essay. See the grading rubric for additional details.
Essay 2
Question: Explain why an organization should complete an external audit of the external forces on the
organization. Your essay should provide examples to support your reasoning for why each part is
important to the strategic plan.
Parameters: Each essay should be written using APA formatting, must have at least 2 external sources
and a minimum length of 250 words for each essay. See the grading rubric for additional details.
ESSAY QUESTIONS 2
Task one
There are many strategies that an organization might take. Strategies are comprehensive
general approaches that the organization views as necessary in the accomplishment of its mission
and the achievement of the future that it prefers. Strategies might take the form of short-term
focused organizational efforts or may be far reaching long-term initiatives. An organization
normally reviews and considers a variety of widely utilized operational strategies in the
determination of how to position itself in the market so as to function successively in the
particular environment it will operate in. Two of these organizational strategies that will be
discussed here are concentrated growth strategy and the vertical integration strategy (Hillman,
Zardkoohi and L. Bierman 2009).
The concentrated growth strategy is one whereby the organization chooses to pay focus
on and conduct an upgrade or increment of the market penetration of a limited amount of
successful services and/or products that have been considered as the organizations mainstays
(Hillman, Zardkoohi and L. Bierman 2009).
ESSAY QUESTIONS 3
On the other hand, integration involves the choice of consolidating major processes or
systems mostly through acquisitions and mergers. Therefore, vertical integration is when the
organization choses to initiate an internal network of supply that places the organization to
proximity with the providers or producers (backward integration), or initiate an internal system
that places the organization to the proximity of the users (forward integration) (Kaplan and
Norton 2010).
Some of the advantages of the concentration strategy include: the organization becomes
very excellent at its business; the operational focus on a single market or industry is possible;
there is competitive advantage growing with the market; and the current resources and
capabilities are valuable. Some of the demerits include: no diversification of risks in the market;
it may be required that the organization creates capabilities and adds value; it might miss profit
and value opportunities; and the industry is generally vulnerable to environmental and industry
risks. For instance the organization might experience reduced selling and purchasing costs but
still face reduced flexibility due to the fact it’s locked to its technology and producers (Kaplan
and Norton 2010).
References
Hillman, A., A. Zardkoohi, and L. Bierman. (2009) “Corporate Political Strategies and Firm
Performance.” Strategic Management Journal, January, 67–82.
ESSAY QUESTIONS 4
Kaplan, R.S., and D.P. Norton. (2010), The Balanced Scorecard: Translating Strategy Into
Action. Boston: The Harvard Business School Press.
Task Two
It is important that an organization completes an external audit of the external forces on
the organization. The auditors will examine the organization’s operations and records to make
sure of the accuracy of financial statements. External auditors play an important role in the
establishment of the credibility of the organization’s business especially in the compliance with
tax laws. The importance of external audit can be listed as: ensuring compliance, providing
credibility, critiquing the internal process, and double-check of internal audit (Selim, Georges
and David 2008).
It is through external audit that an organization can determine whether they are in
compliance with the entire realm of internal revenue rules of service. For instance, the company
behavior maybe non-compliant with the rules something that cannot be noted internally for fear
of repercussions (Selim, Georges and David 2008).
Credibility is ensured if an external auditor makes an evaluation and affirms their
accuracy. Consider a new business searching for a reputation in the first years of its operation,
ESSAY QUESTIONS 5
the company will need less biased personnel to approve their financial statements so as to
achieve that much needed credibility and reputation (Reider 2014).
The internal process of the organization can only be critiqued effectively by external
auditors. For instance, the company may be wasting time and money in its operations something
that cannot be notes from inside, but, external auditors can devise remedies to promote efficiency
and reduce time wastage (Reider 2014).
Double checking internal audit may be crucial to be addressed from external perspectives
since the internal auditors maybe too close to the organization. For instance, they might be
lacking the needed experience and competency (Reider 2014).
References
Reider, Harry R. (2014). The Complete Guide to Operational Auditing. New York: John Wiley
& Sons, Inc…
Selim, Georges M. and David McNamee (2008). Risk Management: Changing the Paradigm.
Alamonte Springs, FL: The Institute of Internal Auditors Research Foundation.
ESSAY QUESTIONS 6
Task three
Majority of large companies, government agencies, institutions, and state, local and
federal governments have established functions for internal auditing there are several reasons
why internal audit is crucial in organizations as reviewed below.
It is only through an internal audit that reliability and integrity of operating information
and financial records and a means to measure, identify, report and classify such information
using an internal perspective can be done. For instance there might be a restriction on what
auditors should evaluate and report to the management, and hence the external auditors are not
appropriate (Frigo et al 2013).
Secondly, internal auditors come in handy in the review of internal systems that are
mainly established to make sure policy compliance to plans, policies, laws, procedures, contracts
and regulations are achieved. For example, these mentioned internal systems could have a
significant impact on the reports and operations, and determine whether the organization inhibits
compliance (Fargason 2012).
ESSAY QUESTIONS 7
External auditors cannot possibly be used to review the safeguarding means of assets, as
required, and verify such assets’ existence; or conduct an economy appraisal and efficiency with
the employment of resources. For instance, the type of audit may require that the auditors
typically operate under an approved charter board that underlines their function, scope and
objectives (Fargason 2012).
Last and not the least, internal audit is crucial in the review of programs or operations to
prove the consistency of results with the establishment of goals and objectives. The internal audit
for example will serve to ascertain whether or not the procession of the programs follow the
outline schedule (Fargason 2012).
References
Fargason, James Scott, (2012). Law and the Internal Auditing Profession. Alamonte Springs, FL:
The Institute of Internal Auditors.
Frigo, Mark L., Krull, George W., and Stephen V.N. (2013). The Impact of Business Process
Reengineering on Internal Auditing. The Institute of Internal Auditors Research
Foundation.
