The preliminary step in the formulation of a mission statement is the selection of an effective writing team. The writing team often work collectively to draft the organization’s mission statement. The team will subsequently share the draft with other company members, gather feedback, obtain consensus, and in some cases, redraft the mission in regards to the provided feedback (Tavityaman et al ., 2016). Secondly, the selected team should agree on the criteria for developing the company’s mission. The team should identify the company’s guiding principles and assess the company’s previous mission statements and those of other organizations. The third step involves defining one’s respective organization. Defining your organization helps in clarifying significant information about important aspects of the organization. The fourth step involves drafting the company’s mission statement; this may be done using a mission statement worksheet. The team should then gather feedback regarding the drafted mission statement, revise or finalize the mission, and ultimately communicate the final mission statement (Tavityaman et al ., 2016).
A mission statement outlines the fundamental goals of an organization; this subsequently helps the company managers lead their subordinates towards attaining a common purpose. Secondly, a mission statement is an important aspect of the company’s business plan. A mission statement is often included in the business plan’s executive summary which consequently outlines a concise overview of the business plan. A powerful mission statement sets the executive summary’s tone in the business plan, and this may ultimately aid an organization in attracting investment, business partners or funding (Tavitiyaman et, al., 2016). Thirdly, a mission statement plays a major role in outlining the company’s direction by establishing a business’ elemental purpose beyond the basic goal of generating profits; this subsequently guides the types and quality of services and products as well as the company policies. Lastly, a mission statement is prospectively beneficial to a company as it acts as an effective form of advertisement. For example, a business owner is capable of attracting businesses from various environmentally conscious people and organizations by incorporating his company’s mission statements in his particular advertisements.
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From the Outsell Consulting script, it is evident that employee training is significant in fostering an improved interaction amid the consumer and the organization as it helps the employees to connect efficiently with the company’s consumers. Employee training is vital in enhancing the sustainability of the organization because it aids in the establishment of systems and processes that foster effective customer care strategies. Training is also significant in developing the culture of an organization. However, after reading the other attached readings, I did not understand how slow industrial growth impacts competitive rivalry among firms. Another point that was unclear to me is the interrelationship between the socio-cultural segment and technology (Lowery & Sullivan, 2017).
The external analysis of a company’s environment is typified by four phases which include assessing, forecasting, monitoring, and scanning. Scanning incorporates the survey of all elements in the general environment, and it subsequently provides the organization with an in-depth insight of the general environment trends and speculations of their implications. Through scanning, the firm can identify the early signs of prospective dynamics in the general environment and uncover the widespread changes (Weir-Hin, Kadzrina & Abdul, 2014). Crucial internet accessible software may be used during the scanning process. For instance, Netflix gathers demographic information about their clients to identify their individual preferences. Monitoring involves the observation of environmental dynamics to enhance the organization’s perception of a significant emerging trend from those identified through the scanning process. For instance, the previously conducted monitoring retirement trends in 2013 revealed that fifty-seven percent of the U.S employees only possess $25000 or less in investments and savings put aside for their retirement (Chrusciel, 2011).
Effectual monitoring requires the organization to recognize vital stakeholders and to perceive its reputation amid these stakeholders as the basis for attending to their distinct needs (Zhang, Majid, and Foo, 2013). Monitoring is an effective means of acquiring the knowledge about markets and the knowledge on how to effectively commercialize the firm's new technologies. Forecasting incorporates the establishment of feasible projections on the probable occurrences of various events. For instance, analysts may predict the period a new technology will be required in the marketplace, or the duration before the subsequent training program. The accurate forecasting of outcomes and events may be very challenging especially for various technological organizations such as Intel. Assessing is typified by the objective of determining the significance and time of the impacts of the identified environmental dynamics and trends (Chrusciel, 2011).
The firm’s external environment segments characterize the general environment. The assessment of the external environment involves the adequate evaluation of these segments to identify opportunities and threats. To adequately assess the demographic segment, the organization should assess the size of the population, the distribution of income, the society’s ethnic mix, and the geographic distribution. Demographic segments are usually assessed on a global basis due to their likely impacts across the borders and because many companies compete in international markets (Chrusciel, 2011). The economic environment relates to the economy’s direction and nature. Firms often seek to compete in comparatively stable economies with substantial growth potential, and because the global economy usually interconnects countries, organizations ought to scan, monitor, forecast, and assess the host nation’s health and the health of their respective economies. The political segment relates to an arena in which companies and various interest groupings compete for resources, and voice in managing the body of law that direct the interactions amid countries and between companies and other local government agencies. Firms often establish a political approach to outline the procedures for understanding the political segment and the strategies they might execute to efficiently manage threats and opportunities that may arise within the segment at different intervals (Bahamani, Farhadpoor & Hamidi, 2017). The sociocultural segment involves various cultural values and societal attitudes, and because values and attitudes form the basis of a society, they usually influence technological, economic, demographic, and political conditions and their dynamics; this subsequently typifies its assessment techniques. To effectively assess the technological segment, one should evaluate the company’s product quality, materials, and processes. The technological segment incorporates the activities and institutions involved in developing and translating the new knowledge into new materials, processes, products, and outputs. The assessment of the global segment consists of the evaluation of the changing markets, new global markets, the global political occurrences, and the crucial institutional and cultural features of global markets. Lastly, the assessment of the physical environment segment incorporates the evaluation of the physical environment’s actual and potential changes and the business activities that are intended to respond positively to the changes (Bahamani, Farhadpoor & Hamidi, 2017).
The analysis of the organization’s industry environment involves five forces threats of new entrants, rivalry amid competing firms, buyers bargaining power, suppliers’ bargaining power, and the threats of substitute products. Identifying new market entrants is significant since they tend to threaten the existing competitor’s market share by bringing an additional capacity of production. Unless there is an increasing demand for a service or good, additional capacity impacts the customers’ costs which subsequently results in low returns and low revenue amid competing firms. New competitors often compel the existing companies to increase their efficiency and implement strategies to enhance their competitive advantage in the new dimension (Chrusciel, 2011). The probability of new firms entering the industry is dependent upon two aspects entry barriers and the retaliation from the existing participants. Companies competing successfully in the market often maintain high barriers to entry to discourage prospective competitors from entering the industry, for instance, the entry barriers established by technology companies such as Apple Inc. and Samsung.
The suppliers’ bargaining power involves the attempts to increase the prices and products and decrease the product quality to expert power over companies competing in the industry. For instance, in the airline industry whereby Airbus and Boeing compete aggressively for major aircraft orders thereby, establishing more power for purchasers in the process. Under the buyers’ bargaining power, companies seek to increase their invested capital returns whereas; consumers want to purchase products at the lowest possible prices. To decrease their costs, the consumers often bargain for increased product quality, improved service levels, and decreased prices. The outcomes are attained by fostering competitive battles amid the industry’s firms. For instance, customers typified with an increased level of information on manufacturer’s costs and the effectiveness of the internet as an efficient distribution and shopping alternative have enhanced bargaining power in numerous industries. Substitute products relate to services or goods which perform similar functions as the goods produced by an industry. For instance, sugar and NutraSweet, a substitute for sugar. Product substitutes often present a powerful threat to companies in instances where there is a switch in costs and prices of products. According to Chrusciel (2011), competitive rivalry amid companies often intensify where a firm is challenged by competitor's actions or when an organization identifies an opportunity to better its position in the market, for instance, Pepsi and Coca-Cola have an intensive rivalry in the liquid drink industry as customers demand improved health benefits and taste.
Lastly, according to Tavityaman et al (2016), a vision statement is more enduring as opposed to a company’s mission statement mainly because it delineates the desired future position of the organization. The vision statement presents a snapshot of the organization’s future, and it acts as an organization’s source of inspiration and the basis of its strategic planning.
References
Bahmani, Z., Farhadpoor, M. R., & Hamidi, M. (2017). Study of the Information Sources Features and its Effect on Managers' Environmental Scanning Behavior. International Journal of Information Science & Management , 15(2), 89-105.
Chrusciel, D. (2011).Environmental scan: influence on strategic direction. Journal of Facilities Management , 9 (1), 7-15
Lowery, B & Sullivan, S. (2017, September 24). Outsell Consulting: Industry Environment Journey. [Video Transcript].
Tavitiyaman, P., Zhang, H. Q., Law, V. T., & Lin, P. C. (2016). Exploring the Environmental Scanning of the Hotel Industry in China. Journal of China Tourism Research , 12(3/4), 313-330.
Wei-Hin, C., Kadzrina Abdul, K., & Abdul Manaf, B. (2014). The Strategic Planning Of SMEs in Malaysia: A View of External Environmental Scanning . International Journal of Business & Society , 15(3), 437-446.
Zhang, X., Majid, S., & Foo, S. (2013). Environmental Scanning Practices of Travel Agent Companies in Singapore. Asia Pacific Journal of Tourism Research , 18(8), 823-848.
