DON HONORIO VENTURA STATE UNIVERSITY

Cabambangan, Bacolor, Pampanga

STRATEGIC MANAGEMENT
FINALS: Activity 1

Essay: Maximum of 10 sentences each (50 pts each)

1. What role does the internal auditor play in the success of the strategies being
implemented by management in its business operation? Cite at least three (3) roles and
clarify your answers.
Risk Assessment: Evaluating performance is the job of internal auditors as they
implement strategies. They can give management an insight into potential problems
that might hinder successful strategy execution through comprehensive risk
assessments. This enables them to take preventative measures against such risks and
ensure effectiveness in implementing tactics by developing mitigation plans where
necessary.

Compliance monitoring: Internal auditors are responsible for ensuring that systems
put in place comply with applicable laws, rules and regulations as well as internal
controls. They aid management by conducting reviews on compliance so as to keep up
with ethical standards while avoiding legal challenges which may interfere with
achievement of objectives within selected courses of action. Through this oversight,
the organization will remain validly constituted operating under established limits set
by authorities and stakeholders alike.

Performance Evaluation: Internal auditors help management evaluate the

performance of the strategies being implemented. These evaluation are done through
performance audits where they evaluate whether their objectives have been achieved
or not.By providing independent and objective assessments of performance, internal
auditors enable management to make informed decisions, identify areas for
improvement, and make necessary adjustments to optimize the outcomes of the
strategies.

Governance Support:Internal auditors assess and contribute to the governance

processes within an organization. By evaluating how decisions are made, how
leadership is held accountable, and how company policies are upheld, they help
ensure that the governance framework supports strategic objectives. This role is
crucial as strong governance can reinforce strategic decision-making processes,
 improve transparency, and enhance the trust of stakeholders. Internal auditors
provide assurance that the governance practices not only meet compliance
requirements but also promote ethical behavior and decision-making aligned with the
organization's strategic goals.

2. In Philippine setting, how does culture affect the decisions made by the leaders of the
business organization in the achievement of the company’s vision? Prove your answer
by citing a local company in the country that its business leader/s considered company
culture before implementing in their strategies for the business organization.

In the country of Philippines, business leaders are often influenced by culture as they
strive to achieve their corporate vision. Filipino culture is famous for its strong
interpersonal ties, respect for authority figures, communal living and collectivism.
Consequently, these norms usually affect such things like leadership styles used;
decision making process employed and strategic directions taken by businesses in
Philippines.

San Miguel Corporation is a local company that shows how decisions are made based
on cultural contexts within Philippines during strategy implementation. It is a
diversified conglomerate involved in food and drinks industry among others such as
packaging power generation infrastructure etcetera. Filipino cultural values have been
used by this organization's leadership led by Ramon Ang, who was once its CEO, to
foster growth and prosperity.

Having established itself deeply into Philippine society over many years of operation
there; San Miguel Corporation has become part of the social fabric of that nation
which cannot be easily ignored or replaced. In order for any business enterprise to
succeed it must connect with its customers at an emotional level so as to win their
loyalty forevermore thus ensuring continued support from them even during hard
times when everything else fails.

To resonate with consumers, employees and other stakeholders alike; Mr. Ramon Ang
realized that while formulating strategies they need also take into account cultural
variations existing among different communities within the country because people
tend buy products/services from companies which share same values/goals with them
Innovation and flexibility have always been considered key drivers towards success not
only at San Miguel Corporation but everywhere else too.
 San Miguel Corporation also prioritizes corporate social responsibility (CSR) initiatives
that are in line with the spirit of community service and giving back as exemplified by
Filipinos. The company’s acts of charity, environmental campaigns, and disaster
management programs bespeak its commitment towards sustainable development
and positive change within societies; they mirror such Filipino qualities as empathy
and unity among others.

San Miguel Corporation is still regarded as one of the topmost reputable firms locally
due to its adoption of Philippine cultural practices into their business strategies. This
achievement demonstrates how much can be accomplished when an organization
understands a society’s way of life, uses it as a basis for making decisions and setting
organizational goals which eventually leads to realization of the company’s mission
statement.
Prepared by:
Sgd.
Jennivib D. Diamzon
Instructor III