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Write a four to five page paper (at least two pages per exercise) that addresses the following audit exercises, found at the end of each respective chapter. Include an introductory paragraph about the business you have chosen, its mission, and its immediate M.T.I goals.
Audit Exercise Chapter 5: This exercise involves synthesizing a strategy score card of four elements: financial results, customers, human resources, and sustainability.
In developing an evaluation and control process, there are many elements that need to be considered. In the chapter, we briefly mentioned Kaplan and Norton’s Balanced Scorecard approach to evaluation. Basically, the BSC approach requires that the firm identify its strategic issues and keys and then develop an evaluation process that examines all of them in a balanced manner. The approach was designed to encourage firms to look beyond financial outcomes and take a more balanced review of performance.
1. Many profit-making firms have a strategy map that is tied to four elements: financial results, customers, human resources, and sustainability. If you developed a scorecard that included these areas, what would be your goal in each area, and what measures would you use? What would be your rationale? Figure 5.8 is an example of one segment of a Balanced Scorecard for Novo Nordisk.
2. What other areas might a profit-making firm include?
3. How would a nonprofit organization use the Balanced Scorecard?
Audit Exercise Chapter 6: This exercise involves developing Information Technology plans and strategy for mergers and acquisitions, planning for the acquisition of new technology during a merger, and measuring evaluation and control.
AUDIT EXERCISE
In developing plans for alliances, especially mergers and acquisitions, the top management of the organization is charged with the responsibility of practicing due diligence. Due diligence is the process of identifying and confirming or disconfirming the business reasons for undertaking the alliance. If the purpose of the alliance is to acquire technology, then due diligence would require identifying and confirming the presence of the technology and the ability of management to take advantage of it. The exercise of due diligence can address a number of areas. These could include:
• Financial processes
• Operations systems and structures
• Human resources policies
• Environmental conditions
• Management of technology and innovation
Choose two of the areas listed and delineate eight to ten concerns to address in the planning of an alliance. For example, one of the operations systems that should be considered is the information system. The concerns in information systems might include defining the various hardware capabilities and networks, listing what software is used for what applications, and listing what software is used on which networks, and so on. For each area, you should be able to list eight to ten concerns that would aid in the planning for the acquisition of technology. By doing this at this stage of the process, you will develop a list of criteria to measure success against during evaluation and control
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