oIdentify organizational mission and objectives, asses current performance vis-
à-vis mission and objectives, create strategic plans to accomplish purpose and
objectives, implement the strategic plans, evaluate results; change strategic
plans and/or implementation processes as necessary.
Analysis of Mission, Values and Objectives
Mission: Reason for an organization’s existence.
oGood mission statements identify: customers, products and/or services,
location, underlying philosophy
oAn important test of the mission is how well it serves the organization’s
Core Value: Values are broad beliefs about what is or is not appropriate.
oStrong core values for an organization helps build institutional identity, gives
character to an organization, and it backs up the mission statement.
oOrganizational culture reflects the dominant value system of the
organization as a whole.
oThrough organizational culture the values of managers and other members
are shaped and pointed in common directions
Objectives: Operating objectives direct activities toward key and specific
oTypical operating objectives (allows for progress and continuous
Profitability – net profit
Market share – gaining and holding a specific market share
Human talent – recruiting and maintain high- quality workforce
Financial health – earning positive returns
Cost efficiency – using resources to operate at a lower cost
Product quality – producing high-quality goods
Innovation – developing new products
Social responsibility – positive contributions to society
Analysis of Organizational Resources and Capabilities
SWOT Analysis Strengths, Weaknesses, Opportunities, Threats
Analysis of Industry and Environment
Porter’s model of five strategic forces affecting industry competition:
oIndustry competitors: intensity of rivalry among firms in the industry
oNew entrants: threats of new competition
oSuppliers – bargaining power of suppliers
oBuyers – bargaining power of buyers
oSubstitutes – threats of substitute products or services
*if the industry is unattractive (a lot of competition) five forces are
**if the industry is unattractive (minimal competition) five forces are
STRATEGIES USED BY ORGANIZATIONS