Strategic Audit Example

Case:

Celestial Seasonings, Inc.

 Student:  Page 1 of 9 STRATEGIC AUDIT FACTOR ANALYSIS WORKSHEET

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STRATEGIC AUDIT

COMMENTS

PARAMETER

I.

CURRENT SITUATION

I.A. Past corporate corporate performance indexes

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Currently growing at 7+ %

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54% market sare of !er"al tea market.

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Ac#uired $artwise in &&.

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Pro't after taxes as exceeded (%.

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In &()* scandal due to toxins found in tea. IP witdrawn.

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In &(4* ac#uired "y ,raft.

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In &((* employees purcased company from ,raft.

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Initial pu"lic o-ering in &().

I..

/trategic Posture0 Mission

12e "elie3e in creating and selling ealtful* naturally oriented products tat nurture peoples "odies and uplift teir souls. ur products must "e 

/uperior in #uality*

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f good 3alue*

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eautifully artistic* and

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Pilosopically inspiring.

ur role is to play an acti3e part in making tis world a "etter place "y unsel'sly ser3ing te pu"lic. 2e "elie3e we can a3e a signi'cant impact on making peoples li3es appier and ealtier troug teir use of our products.

Objectives

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Strategies

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$nsure consistency of product taste

"6ecti3es not explicitly stated in te case text.

 o "e pro'ta"le $xpand and di3ersify 3endor "ase so tat no one 3endor can control te supply cain for any ingredient.

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 arget market0 women (4&

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Penetration pricing 8low cost pro3ider9

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$xpand distri"ution

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Integrated manufacturing

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Policies

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$mployee empowerment

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Consumer in3ol3ement

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Culti3ated er"s must "e organic.

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Promote from witin.

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Preser3e te en3ironment.

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;ounder is currently te cairman of te "oard.

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onopoly

/ocioCultural

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!ealt empasis

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 rade regulations Political insta"ility in foreign countries

 ecnological 

Computer tecnology used for consistency in product.

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>icrowa3es to eat up tea.

III..

ask $n3ironment

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$n3ironmental concern

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$-ect of "a"y "oom on target market.

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@income families

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Cultural norms

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Competitors ipton B igelow

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imited competition

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Appeals to te ealt conscious consumer

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arriers to entry are signi'cant.

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/u"stitute products exist.

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Celestial /easonings created tis market.

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3erall tea market is stagnating 8oter tan te li#uid tea segment9

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/pecialty tea market in increasing.

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Company is pu"licly traded.

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Ingredients supplied from all o3er te world.

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/uppliers a3e little power since tere are so many.

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 otally nonunion plant.

IV INTERNAL                   

ENVIRONMENT

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