Topic > Agency Theory and Stewardship Theoretical Paper - 1011

“Strategic audit can be used to analyze complex business issues and for strategic decision making” (Wheelen and Hunger, P7). The audit consists of a list of questions that leaders use to analyze a company's strengths and weaknesses. Use external diagnostic factors and internal diagnostic factors to evaluate the company. The strategic audit aids corporate governance by enabling leaders to ensure the company is operating in the best interests of the company and shareholders. Identifying a company's shortcomings gives them the opportunity to come up with a strategy to correct the problems. An example of The Home Depot using a strategic audit is the “voice of associates” survey provided annually to associates and the “voice of customers” survey provided to customers. The employee survey consists of questions about the company as a whole and the specific location. All customers are given a survey at the end of their receipts with the possibility of one customer being entered into a raffle to win a five thousand dollar gift card. Management is provided with survey results in order to address issues and overall remain successful