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The external audit

UNIT 1. MARKETING AND THE COMPANY | MARKETING AND THE COMPANY | Memos are used only inside the company. | VALUE FOR THE CUSTOMERS | UNIT 5. THE MARKETING AUDIT | PESTLE and SWOT ANALYSES | Company performance | Recommendation | Methods of research | Personal, face-to-face |


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To see the company’s internal audit in perspective, the directors should place it in the context of the wider environment. Whereas the internal audit examines factors over which the company has some control, the external audit looks at factors in the external market that the company may be able to influence but cannot control.

 

These include:

1. The operating or narrow external picture, covering elements such as the total size of each of the markets or segments, competition, paths to market, and the trends in these elements.

2. The broader picture, covering all the social, economic, political, legal, environmental and cultural factors that can have an impact on the company.

The external audit should give a clearer view of the markets as a precursor to identifying where the best opportunities are and where the most likely threats to the company’s market position might lie.

This information should help to determine the strength of the company’s position, compared with that of competitors, in supplying the benefits sought by the target customers.

 

Exercise 9. Read the text once again and express the contents of every passage in one sentence.

Exercise 10. Fill in the gaps in this passage with the words under the line; learn all the new words to expand your vocabulary on the topic.

Changes

1. Changes are constantly taking place in any society. First of all, there are… changes that are emigration, immigration, movements in birth and death. Such population … calls for changes in allocation of resources to different industries.

A rapidly increasing population has a large proportion of younger…. That is why; there is increasing demand for … consumed by young people. These are nursery schools, schools, schoolteachers and other …for the youth.

things, commodities, people, changes, population

 

2. Political changes influence the changes greatly both at home and abroad. Changes in the …of taxation and distribution of government … are important instruments of government policy. If the industries are nationalized, the government can directly influence the allocation of …. External political changes are also important if the country is dependent upon the … markets. So, political changes … all sectors of economy.

 

export, resources, spending, structure, influence

Exercise 11. Make the presentation of the company internal marketing audit for a group of trainees. Use the stages of the presentation from Unit 1.

Exercise 12. Write the draft of the presentation about the importance of the external company marketing audit to your trainees.

 

Exercise13. Read the SWOT – analysis for the company, and write your own one. Remember, that S – stands for strengths, W – stands for weaknesses, O – stands for opportunities, t – stands for threats.

SWOT–analysis for the Path Supermarket

Strengths:

1. Good location of the Supermarket.

2. In house manufacturing.

3. Well developed system of motivation.

4. Good image of the company on the local market.

5. The opportunity to get loans from the bank.

Weaknesses:

1. Staff with low qualification.

2. High requirements to the work of personnel and middle level of salary on the city market.

3. High staff turnover.

4. Poor production and delivery technologies.

5. Poor planning system.


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