Professional Documents
Culture Documents
A Customer Orientation
According to Vern McGinnis, a mission statement should
1) Define what the organization is and what the organization aspires to be 2) Be limited enough to exclude some ventures and broad enough to allow for creative growth 3) Distinguish a given organization from all others 4) Serve as a framework for evaluating both current and prospective activities 5) Be stated in terms sufficiently clear to be widely understood throughout the organization
Economic forces Social, cultural, demographic, & environmental forces Political, legal, & governmental forces Technological forces Competitive forces
Competitors Suppliers Distributors Creditors Customers Employees Communities Managers Stockholders Labor unions Governments Trade associations Special interest groups Roducts Services Markets Natural environment
Economic Forces
Availability of credit Level of disposable income Propensity of people to spend Interest rates Inflation rates Money market rated Gross domestic product trend Consumption patterns Unemployment trends Worker productivity levels Stock market trends Foreign countries economic conditions Import/export factors
Demand shifts for different categories of goods & service Income differences by regions & consumer groups Price fluctuations Monetary policies Fiscal policies Tax rates European Economic Community (EEC) policies Organization of Petroleum Exporting Countries (OPEC) policies Coalition of Lesser Developed Countries (LDC) policies
Technological Forces
Internet is acting as a national and global economic engine that is spurring productivity. Internet is changing the very nature of opportunities and threats by altering the life cycles of products, increasing the speed of distribution, creating new products and services, erasing limitations of traditional geographic markets, and changing the historical tradeoff between production standardization and flexibility.
Competitive Forces
Collecting and evaluating information on competitors is essential for successful strategy formulation. Competitive intelligence (CI) is a systematic and ethical process for gathering and analyzing information about the competitions activities and general business trends to further a businesss own goals. Three basic missions of a CI program: To provide a general understanding of an industry & its competitors To identify areas in which competitors are vulnerable& to assess the impact strategic actions would have on competitors To identify potential moves that a competitor might make that would endanger a firms position in the market
Published sources
Periodicals, journals, reports, government documents, abstracts, book, directories, newspapers, and manuals.
Internet
Making Assumptions
Assumptions best present estimates of the impact of major external factors, over which the manager has little if any control, but which may exert a significant impact on performance or the ability to achieved desired results.
Globalization
Is a process of worldwide integration of strategy formulation, implementation, and evaluation activities. Strategic decisions are made based on their impact upon global profitability of the firm, rather than on just domestic or other individual country considerations.
Weight
Rating
Weighted
Score
0.04
0.08 0.06 1.00
3
2 1
0.12
0.16 0.06 2.58
Company 2
Rating 4 3 2 3 2 3 1 4 Score 0.80 0.30 0.20 0.30 0.30 0.30 0.20 0.20 2.60
Company 3
Rating 3 2 4 3 3 2 2 3 Score 0.60 0.20 0.40 0.30 0.45 0.20 0.40 0.15 2.70