Direction of the organization toward success in the long run.
The ability to predict opportunities and threats in the future.
A vision statement is intended to guide the organization in the future, what the organization wants to become or where it wants to be.
Vision is derived from a careful analysis of the external and internal environments
Table 4. 1 Ford Motor Company’s Mission Statement Ford Motor Company Our Vision To become the world’s leading consumer company for automotive products and services. Our Mission We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. We anticipate consumer need and deliver outstanding products and services that improve people’s lives. Our Values Our business is driven by our consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyone’s contribution. The health and safety of our people are paramount. We are a leader in environmental responsibility. Our integrity is never compromised and we make a positive contribution to society. We constantly strive to improve in everything we do. Guided by these values, we provide superior returns to our shareholders. Source: Ford Motor Co. website (http://www.ford.com), 30 June 2005.
Includes environmental forces that are beyond the influence of the organization and over which it has no (or little) control.
Includes environmental forces that are within the organization’s operating environment and may be influenced to some degree.
The economic components of the general environment.
Figure 4. 3 Dimensions of the Global External Environment
Table 4.2 Sample Issues in the General Environment Economic • Inflation rates • Unemployment rates • Wage rates • Exchange rates • Stock market fluctuations • Per capita income • GDP trends • Economic development Sociocultural • Norms and values • Demographic trends • Age groups • Regional shifts in population • Household composition • Diversity • Ecological awareness • Life expectancy Technological • Spending on research and development • Internet availability • Availability of information technology • Production technology trends • Productivity improvements • Telecommunications infrastructure Political–Legal • Tax laws • Environmental protection • International trade regulation • Antitrust regulation • Federal Reserve policy • Intellectual property and patent laws
To identify the assets, resources, skills, and processes that represent either strengths or weaknesses for the organization.
Aspects of the organization’s operations that represent potential competitive advantages or distinctive competencies .
Areas that are in need of improvement.
Table 4. 3 Internal Factors for Analysis Marketing Operations Product, service Productivity Brand equity Quality Market research Facilities Sales force Supply chain Market share Technology Size of market Purchasing Distribution channels Safety Price Ecological issues Promotion Finance Profitability Revenue Asset utilization Debt/leverage Equity Per unit costs Profit margins Cash flow Human Resources Skills Selection Training and development Leadership Motivation Communication Rewards Other Factors Organization culture Overall control Information system Information technology Organizational structure