Economics and External Audit
As mentioned in the case study above, Kellogg is going through a challenging time. Perform an external audit on Kellogg. Discuss the opportunities and threats facing the company.
Answer
Perform an external audit on Kellogg, will gain the team with better understanding of the firm industry, competitors and markets. It should involve as many managers and employees as possible.
Before perform the audit, Kellogg must try to gather as much as possible on competitive intelligence and information about the products range, scale of economic, social, cultural, local political situation, legal, and technological trends. External audit staffs or manager should get strategic information update periodically by various sources such as such as internet, business magazine, and trade journals from stock exchange markets, newspaper, university and corporate publication. Suppliers, distributors, customers, salespersons and competitors represent also good references information.
Once Kellogg collected all these information, a detail study and evaluation should immediate carry out by involving a group of key staffs and management to identify the key threads and opportunities may occurs. Every key factor should list down and put with priority with rank from 1 for most important to 20 with least important. This ranking should conduct for both threat and opportunity. These external key factors may change from time to time which very much depending on the situation. Relationships with supplier or distributors are often a critical success factor. Other important variables use are include market share value, world economic environment, and technology, price competitiveness, load interest rate, competing of same range of products and sales force advantage and so on.
Key external factors should be (a) Important for Kellogg to achieving annual and long-term objectives (b) applicable to all competing organization or company (c) quantitative and must be measureable (d) hierarchical
Answer
Perform an external audit on Kellogg, will gain the team with better understanding of the firm industry, competitors and markets. It should involve as many managers and employees as possible.
Before perform the audit, Kellogg must try to gather as much as possible on competitive intelligence and information about the products range, scale of economic, social, cultural, local political situation, legal, and technological trends. External audit staffs or manager should get strategic information update periodically by various sources such as such as internet, business magazine, and trade journals from stock exchange markets, newspaper, university and corporate publication. Suppliers, distributors, customers, salespersons and competitors represent also good references information.
Once Kellogg collected all these information, a detail study and evaluation should immediate carry out by involving a group of key staffs and management to identify the key threads and opportunities may occurs. Every key factor should list down and put with priority with rank from 1 for most important to 20 with least important. This ranking should conduct for both threat and opportunity. These external key factors may change from time to time which very much depending on the situation. Relationships with supplier or distributors are often a critical success factor. Other important variables use are include market share value, world economic environment, and technology, price competitiveness, load interest rate, competing of same range of products and sales force advantage and so on.
Key external factors should be (a) Important for Kellogg to achieving annual and long-term objectives (b) applicable to all competing organization or company (c) quantitative and must be measureable (d) hierarchical