Fundamentals of Management wk 3– External analysis and Organisation’s Vision/Mission

MSc – Agricultural Economics and ManagementFundamentals of Management

BSc Agricultural Economics and Management

Fundamentals of Managementwk 3– External analysis and Organisation’s Vision/Mission

Richard Selby



What effects an Organisation?

Can be summarised as:

• The external environment– Includes the stakeholders (which we

discussed briefly last week) + more!

• The internal environment– Coming later…!



External environment

Everything which influences the organisation

from the outside, such as:



External environment

• The stakeholders• The government• Money• Laws• Competition

• Changes in lifestyle• Changes in

population• Technology• Etc, etc, etc, etc ….

Everything which influences the organisation

from the outside, such as:



What to include?

A checklist:

• Sociological considerations

• Technological considerations

• Economic considerations

• Political considerations



What to include?

A checklist:





Often called STEP analysis because



What to include?

A checklist:





Often called STEP analysis becauseof the initial letters



What to include?

A checklist:





Or sometimes PEST analysis for thesame reason



Sociological“Socio-cultural”

• Changes in lifestyles• Demographics• Education• Health• Income• Work vs leisure• Environmental issues



Technological

• New products/expectations – (incl. quality)

• Speed of change

• Competition

• Investment policies– (incl. Local, Regional, National, International)

• Legal/regulatory issues



Economic

• Interest rates

• Exchange rates

• Investment – from all sources

• Consumer disposable income

• Tax policies

• Incentives



Political

• Government policies

• Government stability

• State-owned vs privately owned

• Legal and regulatory issues



Sometimes two more headings are added to the checklist:

STEP +

Environmental issues, and

Legal issues

However, I have included these in my STEP



End of part 1……

……part 2



Vision and Mission

• A Vision statement is a declaration of where you would like to be



Vision and Mission


• A Mission statement expresses the purpose of the organisation



Vision and Mission


• A Mission statement expresses the purpose of the organisation

The two are complimentary – the Mission is

how you get to the Vision



An example of a Vision statement

“The Telecommunications Department will be a leader in enabling Texas Tech University to exchange thoughts and ideas through technology. Communications will empower students, faculty, and staff to reduce distance through collaboration”.

Source: Texas Tech University, Office of the CIO, Box 42008, Lubbock, TX 79409http://www.depts.ttu.edu/infotech/strat/telecom.pdf



An example of a Mission statement

“The Telecommunications department provides reliable, modern, and integrated communications services to enable teaching, learning, research, and outreach”.

Source: Texas Tech University, Office of the CIO, Box 42008, Lubbock, TX 79409http://www.depts.ttu.edu/infotech/strat/telecom.pdf



“Walk the talk”

However the Vision and Mission statement

is written, it has to be adopted by everyone

at every level …..

…..beginning with top management!



Language

It must also be written in clear, unambiguous language which everyone can understand

at every level!



Thanks for your attention!

Copies of this presentation are on Moodle

Documents

Fundamentals of Management wk 3– External analysis and Organisation’s Vision/Mission