Strategic Implications of a Swot Analysis

Name: – Nana Kesewaa Dankwa Index Number:-PGDBA/PM/022/0912 EVALUATE THE STRATEGIC IMPLICATIONS OF THE SWOT ANALYSIS MODEL OF AN ORGANIZATION OF YOUR CHOICE. Introduction: Strength, Weaknesses, Opportunities and Threats (SWOT) Analysis is an important device for audit and analysis of the overall strategic position of an organisation and its environment. It aims to elicit tactics which will generate an organisation specific operational model that will best align an organization’s resources and capabilities to the requirements of the environment in which the firm operates (www. anagementstudyguide. com). Therefore, for any organisation to survive and achieve its mandate, it needs to strategically and competently undertake a SWOT analysis of its environment to fashion out activities which will enable it pursue and achieve its mission and vision. The Internal Audit Agency The organisation selected for this assignment is the Internal Audit Agency (IAA). The IAA was establish ed by the Internal Audit Agency Act 2003 (Act 658).The Agency’s mission is to exercise oversight responsibility over internal audit practice in the public service by setting standards, providing quality assurance and supporting capacity building for good corporate governance, effective risk management and controls through highly skilled and motivated workforce. Its vision is to be a Centre of Excellence in Africa in promoting best practices in internal auditing. The strategies adopted by the Agency to achieve its set objectives include; 1.Effectively promoting internal audit practice in Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs) 2. Increasing public access to information on internal audit activities 3. Creating a congenial environment for high performance work in the Internal Audit Agency 4. Improving good governance and accountability in MDAs and MMDAs SWOT Analysis Model of the Internal Audit Agency StrengthsWeakn essesOpportunitiesThreats Congenial relationship between Board, management and staffConducive work environment Approved Scheme of ServiceLow morale of staff due to improper placement Support of the Presidency Legal backing for IAA work Independent Judiciary Good relationship with central management agencies (CMAs)Lack of continuous political commitment Poaching of internal audit skills by other institutions. High quality of staff (competence and qualifications) Proactive Leadership Supportive Board Youthful and energetic staff Cordial working relationship Good corporate imageInadequate training for staffInadequate office accommodation Inadequate Staff numbers Govt committed to developing internal audit function Appreciable number of qualified personnel available in Ghana Goodwill of suppliers and service providers International recognition Availability of curricula for training internal auditors in tertiary institutions. Poaching of key staff from IAA Publicity on negative activitie s by staff of Internal Audit Units (IAUs) The perception that corrupt practices are â€Å"normal† Misconception of the role of IAUs.INTRANET – facilitates communication within IAA INTERNET – facilitates communication of IAA with the external world Availability of ICT Tools Availability of a websiteHigh downtime for office equipment. Non-availability of electronic recording equipment Inadequate & outdated ICT equipmentPotential to Network with all MDAs and MMDAs. Emerging technologies to facilitate conduct of internal audit functions (e. g. Audit Software) Implementation of GIFMISComputer Viruses & FraudsPoor ICT infrastructure and geographical spread of MDAs and MMDAs Frequent power outages. Legal mandate by an Act of Parliament, Act 658 Availability of conditions of serviceLack of enforcement powers. High demand by MDAs and MMDAs to get services of internal audit Legislation in areas such as labour, compensation and health and safety Non-transmittal of IAA Annu al Report to Parliament Inability to enforce prosecution of liable public service staff Inadequate authority to enforce implementation of audit recommendationsStrategic Implications of the SWOT Analysis model of the Internal Audit Agency The Internal Audit Agency’s SWOT Analysis model was done to be able assist the AGENCY ACHIEVE ITS OBJECTIVES . it is legally mandated to achieve its Now the strategies of the agency were drawn out the swoty analysis done the agency drew all its strengths The strategies of the IAA have been formulated to assist the organisation achieve its mission and vision. These strategies have been designed taking cognisance of the objectives defined for the Agency in Act 658.The SWOT analyses undertaken by the IAA adequately scan the Agency’s environment and have appropriately ascribed both external and internal environmental issues. The Agency’s SWOT model has captured detailed internal and external environmental issues which would place th e Agency in a proper position to adequately pursue and achieve its goal and objectives with minimal adversity and a well prepared system as it has anticipated all the positive and negative internal and external issues which could respectively support or derail its efforts towards achieving its objectives.However, the Agency’s SWOT model is highly subjective as these strengths, weaknesses, opportunities and threats are based massively on the perceptions of the staff undertaking the exercise. The methods of identifying these environmental issues are not scientific as the Agency failed to provide any basis to that effect in their strategic plan for 2011- 2015. Conclusion SWOT analysis is a powerful tool for the systematic analysis of internal and external environments of an organization. It aids in effectively identifying problems and drawing lines of future actions to eliminate or ameliorate these problems.