Internal Audit of Fuller Smith & Turner plc Essay

Internal Audit of Fuller Smith & turner plc - Essay ExampleThe aim of the analyze is to see the need for corrective action by top-level charge on its policies. The idea is to stimulate mutual discussion between outside auditors and insiders (management and employees) who implement goals and find ways of improving the present situation. Its objective is therefore not only to correct the present way things be done, but probably more important is the good that the process can do to everyone involved, like the manage of surveys of the present situation and the roundtable discussions that would be based on facts instead of opinions (Kondo, 1988, p. 15-16).An internal audit serves an educational purpose and offers management a chance to review those facts of the firms strategies and operations that may reflect on management, employees, and other stakeholders. One positive effect of an audit is contributing to the way employees improve relationships with each other and consciousness the work they do.There ar different ways of doing an internal audit. ... The simplest is to gather data from periodic strategical and operational reviews, but the firm can also commission the use of other tools such as employee and customer satisfaction surveys, performance excellence models, and benchmarking (Witcher, 2003).Three highly popular techniques we can use audit the firm and the business environment where it operates are the SWOT analysis (Andrews, 1987 Ansoff, 1965 Chandler, 1962), the PESTEL analysis (Steiner, 1979 Andrews, 1987), and Porters Five Forces model and generic Strategy (Porter, 1980 and 1985).SWOT/PESTEL AnalysisFor this first part, we combine the SWOT/PESTEL approach. The SWOT analysis is so-called because of the acronym of the 4 factors required for assessing the organizations internal (Strengths and Weaknesses) and external (Opportunities and Threats) environments. The PESTEL analysis considers six environmental factors that affect the enterprise and i ts business Political, Economic, Social, Technological, Environmental, and Legal. We result combine the PESTEL factors with the SWOT analysis factors to audit Fullers.Porters ModelsPorter (1980, 1985) proposed the Five Forces model that helps a firm dissect its environment and design its competitive strategy by choosing one of three generic strategies. The five forces are bargaining power of suppliers, bargaining power of buyers, threat of substitutes, the intensity of rivalry, and the threat of new entrants. The three generic strategies are over-all cost leadership that allow the firm to compete on the basis of price by achieving efficiencies by minimising costs and attaining economies of scale differentiation by way of brand image, technology, features, uniqueness, or the quality of assistance support, any of which enables the firm to charge a