ORL 577 - Strategy Development and Implementation Test 1

Political, Governmental, and Legal Forces:

Local, state, and federal laws, as well as regulatory agencies and special-interest groups, can have a major impact on the strategies of small, large, for-profit, and nonprofit organizations.

Social, Cultural, Demographic, and Environmental (SCDE) Forces:

SCDE forces impact strategic decisions on virtually all products, services, markets, and customers.; These forces are shaping the way people live, work, produce, and consume.

A strategic plan is:

a company's game plan results from tough managerial choices among numerous good alternatives, and it signals commitment to specific markets, policies, procedures, and operations

Competitive Intelligence Programs:

a systematic and ethical process for gathering and analyzing information about the competition's activities and general business trends to further a business's own goals

Vision and Mission Statements difference:

a vision statement answers the question "what do we want to become" a mission statement answers the question "what is our business"

Industry Analysis: The External Factor Evaluation (EFE) Matrix:

allows strategists to summarize and evaluate: •Social •Cultural •Demographic •Economic •Environmental •Political •Governmental •Legal •Technological •Competitive

Internal Strengths and Internal Weaknesses

an organization's controllable activities that are performed especially well or poorly; determined relative to competitors

Competitive Advantage:

any activity a firm does especially well compared to activities done by rival firms, or any resource a firm possesses that rival firms desire; a firm must strive to achieve sustained competitive advantage

Dividend Decisions:

concern issues such as the percentage of earnings paid to stockholders, the stability of dividends paid over time, and the repurchase or issuance of stock; determine the amount of funds that are retained in a firm compared to the amount paid out to stockholders

Production/Operations Function:

consists of all those activities that transform inputs into goods and services; Production/operations management deals with inputs, transformations, and outputs that vary across industries and markets.

Financing Decision:

determines the best capital structure for the firm and includes examining various methods by which the firm can raise capital

Strategy Evaluation:

determining which strategies are not working well; three fundamental activities: reviewing external and internal factors that are the bases for current strategies, measuring performance, taking corrective actions

Strategy Formulation:

developing a vision and mission; identifying an organization's external opportunities and threats; determining internal strengths and weaknesses; establishing long-term objectives; generating alternative strategies; and choosing particular strategies to pursue

External Opportunities and Threats:

economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization

Forecasts:

educated assumptions about future trends and events; no forecast is perfect

External Audit:

focuses on identifying and evaluating trends and events beyond the control of a single firm; reveals key opportunities and threats confronting an organization so that managers can formulate strategies to take advantage of the opportunities and avoid or reduce the impact of threats

Product Planning:

includes activities such as test marketing; product and brand positioning; devising warranties; packaging; determining product options, features, style, and quality; deleting old products; and providing for customer service; important when a company is pursuing product development or diversification

Strategists:

individuals most responsible for the success or failure of an organization; help an organization gather, analyze, and organize information

Non financial Benefits:

Enhanced awareness of external threats; Improved understanding of competitors' strategies; Increased employee productivity; Reduced resistance to change; Clearer understanding of performance-reward relationships

Organizational Culture:

is "a pattern of behavior that has been developed by an organization as it learns to cope with its problem of external adaptation and internal integration and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel."

Strategy Implementation:

requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed; often called the action stage

Annual Objectives:

short-term milestones that organizations must achieve to reach long-term objectives; should be measurable, quantitative, challenging, realistic, consistent, and prioritized; should be established at the corporate, divisional, and functional levels in a large organization

Long-Term Objectives:

specific results that an organization seeks to achieve in pursuing its basic mission; long-term means more than one year; should be challenging, measurable, consistent, reasonable, and clear

Stages of Strategic Management:

strategy formulation strategy implementation strategy evaluation

Investment Decision (Capital Budgeting)

the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization

Strategic Management

the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives

Policies:

the means by which annual objectives will be achieved

Strategies:

the means by which long-term objectives will be achieved; may include geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation, and joint ventures

Marketing:

the process of defining, anticipating, creating, and fulfilling customers' needs and wants.

Marketing Research:

the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services; can uncover critical strengths and weaknesses

Strategic management is used:

to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation

Strategy formulation decisions:

what new businesses to enter what businesses to abandon whether to expand operations or diversify whether to enter international markets whether to merge or form a joint venture how to avoid a hostile takeover

Example (Possible) Aspects of an Organization's Culture:

1. Strong work ethic; arrive early and leave late 2. High ethical beliefs; clear code of business ethics followed 3. Formal dress; shirt and tie expected 4. Informal dress; many casual dress days 5. Socialize together outside of work 6. Do not question supervisor's decision 7. Encourage whistle-blowing 8. Be health conscious; have a wellness program 9. Allow substantial "working from home" 10. Encourage creativity, innovation, and open-mindedness 11. Support women and minorities; no glass ceiling 12. Be highly socially responsible; be philanthropic 13. Have numerous meetings 14. Have a participative management style 15. Preserve the natural environment; have a sustainability program

Key External Forces:

1. economic forces 2. social, cultural, demographic, and environment forces 3. political, governmental, and legal forces 4. technological forces 5. competitive forces

Marketing Audit Checklist of Questions:

1.Are markets segmented effectively? 2.Is the organization positioned well among competitors? 3.Are present channels of distribution reliable and cost effective? 4.Is the firm conducting and using market research effectively? 5.Are product quality and customer service good? 6.Are the firm's products and services priced appropriately? 7.Does the firm have an effective promotional strategy? 8.Is the firm's Internet presence excellent as compared to rivals?

Characteristics of a Mission Statement Pt 2:

1.Broad in scope; does not include monetary amounts, numbers, percentages, ratios, or objectives 2.Fewer than 150 words in length 3.Inspiring 4.Identifies the utility of a firm's products 5.Reveals that the firm is socially responsible 6.Reveals that the firm is environmentally responsible 7.Includes nine components: customers, products or services, markets, technology, concern for survival/growth/profits, philosophy, self-concept, concern for public image, concern for employees 8.Reconciliatory 9.Enduring

Some Opportunities and Threats:

Consumers' expectation for green operations and products is rising 8 percent annually in Western Europe. Internet marketing is growing 11 percent annually in the United States. Commodity food prices rose 6 percent the prior year Oil and gas prices declined 18 percent in the last twelve months. Computer hacker problems are increasing 14 percent annually.

Mission Statement Components:

1.Customers-Who are the firm's customers? 2.Products or services-What are the firm's major products or services? 3.Markets-Geographically, where does the firm compete? 4.Technology-Is the firm technologically current? 5.Survival, growth, and profitability-Is the firm committed to growth and financial soundness? 6.Philosophy-What are the basic beliefs, values, aspirations, and ethical priorities of the firm? 7.Distinctive competence-What is the firm's major competitive advantage? 8.Public image-Is the firm responsive to social, community, and environmental concerns? 9.Employees-Are employees a valuable asset of the firm?

Management Audit Checklist of Questions:

1.Does the firm use strategic-management concepts? 2.Are company objectives and goals measurable and well communicated? 3.Do managers at all hierarchical levels plan effectively? 4.Do managers delegate authority well? 5.Is the organization's structure appropriate? 6.Are job descriptions and job specifications clear? 7.Is employee morale high? 8.Are employee turnover and absenteeism low? 9.Are organizational reward and control mechanisms effective?

The Five-Forces Model of Competition:

1.Identify key aspects or elements of each competitive force that impact the firm. 2.Evaluate how strong and important each element is for the firm. 3.Decide whether the collective strength of the elements is worth the firm entering or staying in the industry.

Conditions Where Consumers Gain Bargaining Power:

1.If buyers can inexpensively switch 2.If buyers are particularly important 3.If sellers are struggling in the face of falling consumer demand 4.If buyers are informed about sellers' products, prices, and costs 5.If buyers have discretion in whether and when they purchase the product

EFE Matrix Steps:

1.List 20 key external factors 2.Weight from 0.0 to 1.0 3.Rate the effectiveness of current strategies from 1-4 4.Multiply weight * rating 5.Sum weighted scores

The Internal Factor Evaluation (IFE) Matrix:

1.List key internal factors as identified in the internal-audit process. 2.Assign a weight that ranges from 0.0 (not important) to 1.0 (all-important) to each factor. 3.Assign a 1-to-4 rating to each factor to indicate whether that factor represents a strength or weakness. 4.Multiply each factor's weight by its rating to determine a weighted score for each variable. 5.Sum the weighted scores for each variable to determine the total weighted score for the organization.

Five Basic Activities in Marketing:

1.Marketing research and target market analysis 2.Product planning 3.Pricing products 4.Promoting products 5.Placing or distributing products

Key Questions About Competitors:

1.What are the strengths and weaknesses of our major competitors? 2.What products and services do we offer that are unique in the industry? 3.What are the objectives and strategies of our major competitors? 4.How will our major competitors most likely respond to current economic, SCDE, political, governmental, legal, technological, and competitive trends affecting our industry? 5.How vulnerable are the major competitors to our new strategies, products, and services? 6.How vulnerable is our firm to successful counterattack by our major competitors? 7.How does our firm compare to rivals in mastering the social-media conversation in this industry? 8.To what extent are new firms entering and old firms leaving this industry? 9.What key factors have resulted in our present competitive position in this industry? 10.How are supplier and distributor relationships changing in this industry?

Finance/Accounting Audit Checklist:

1.Where is the firm financially strong and weak as indicated by financial ratio analyses? 2.Can the firm raise needed short-term capital? 3.Can the firm raise needed long-term capital through debt or equity? 4.Does the firm have sufficient working capital? 5.Are capital budgeting procedures effective? 6.Are dividend payout policies reasonable? 7.Does the firm have excellent relations with its investors and stockholders? 8.Are the firm's financial managers experienced and well trained? 9.Is the firm's debt situation excellent?

Business Analytics:

A business technique that involves using software to mine huge volumes of data to help executives make decisions.; Also called predictive analytics, machine learning, or data mining.

Core Values Statement:

A core values statement specifies a firm's commitment to integrity, fairness, discipline, equal employment opportunity, teamwork, accountability, continuous improvement, or other such exemplary attributes.

Mission Statement:

A declaration of an organization's "reason for being."; It answers the pivotal question "What is our business?"; It is essential for effectively establishing objectives and formulating strategies.; It reveals what an organization wants to be and whom it wants to serve; It is also called a creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, and a statement of business principles

Distinctive Competencies:

A firm's strengths that cannot be easily matched or imitated by competitors; Building competitive advantages involves taking advantage of distinctive competencies

Comparing Business and Military Strategy:

A fundamental difference between military and business strategy is that business strategy is formulated, implemented, and evaluated with an assumption of competition, whereas military strategy is based on an assumption of conflict; Both business and military organizations must adapt to change and constantly improve to be successful

Examples of Employability Skills From Using Text:

Critical thinking; Collaboration; Knowledge application and analysis; Business ethics and social responsibility; Information; technology; Data literacy

Characteristics of a Mission Statement:

A good mission statement allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity.; A mission statement needs to be broad to reconcile differences effectively among, and appeal to, an organization's diverse stakeholders. •Stakeholders -include employees, managers, stockholders, boards of directors, customers, suppliers, distributors, creditors, governments (local, state, federal, and foreign), unions, competitors, environmental groups, and the general public.

Vision Statement:

A vision statement should answer the basic question: "What do we want to become?"; The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the statement.; The vision statement should reveal the type of business the firm engages.

Developing Vision and Mission Statements:

A widely used approach includes: •Select several articles about these statements and ask all managers to read these as background information. •Ask managers themselves to prepare a vision and mission statement for the organization. •A facilitator or committee of top managers should then merge these statements into a single document and distribute the draft statements to all managers. A request for modifications, additions, and deletions is needed next, along with a meeting to revise the document

10 Benefits of Having a Clear Mission and Vision:

Achieve clarity of purpose among all managers and employees. Provide a basis for all other strategic planning activities, including internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources, and evaluating performance. Provide direction. Provide a focal point for all stakeholders of the firm. Resolve divergent views among managers. Promote a sense of shared expectations among all managers and employees. Project a sense of worth and intent to all stakeholders. Project an organized, motivated organization worthy of support. Achieve higher organizational performance. Achieve synergy among all managers and employees.

Competitive Forces:

An important part of an external audit is identifyingrival firms and determining their strengths,weaknesses, capabilities, opportunities, threats, objectives, and strategies

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 achieve desired results.

Example Mission Statements:

Hershey •We bring sweet moments (2) of Hershey happiness (6) to the world (3) every day. •Author comment: Statement lacks six components: Customers (1), Technology (4), Survival/Growth/Profits (5), Distinctive Competence (7), Public Image (8), and Employees (9); 12 words A Proposed Mission Statement for Hershey •We aim to serve consumers of all ages and lifestyles (1) by providing high-quality chocolate, candy, and snack products (2) globally (3). We intend to grow and expand our product offerings (5) using robotics and business analytics (4). We are dedicated to supporting all communities where we operate (8), especially to the boys and girls in the Milton Hershey School (6). Through our friendly and well-trained employees (9), we provide consumers the best chocolate anywhere and wrapped in Hershey Happiness (7).

Industry Analysis: Competitive Profile Matrix (CPM):

Identifies firm's major competitors and their strengths& weaknesses in relation to a sample firm's strategic positions; Critical success factors include internal and external issues; The ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness.

Promotion:

Includes many marketing activities, such as advertising, sales promotion, public relations, personal selling, and direct marketing.; Common promotional tools designed to inform consumers about products include TV advertising, magazine ads, billboards, websites, and public relations, among others.

Obtaining Competitive Intelligence:

Legal and ethical ways to obtain competitive intelligence: 1.Reverse-engineer rival firms' products. 2.Use surveys and interviews of customers, suppliers, and distributors of rival firms. 3.Analyze rival firm's Form 10-K. 4.Conduct fly-over and drive-by visits to rival firm operations. 5.Search online databases. 6.Contact government agencies for public information about rival firms. 7.Monitor relevant trade publications, magazines, and newspapers. 8.Purchase social-media data about customers of all firms in the industry. 9.Hire top executives from rival firms.

Insight on Scope of Mission Statement:

Mission statements are not designed to express concrete ends, but rather to provide motivation, general direction, an image, a tone, and a philosophy to guide the enterprise. An excess of detail could prove counterproductive since concrete specification could be the base for rallying opposition; all in the firm need to be onboard with the firm's mission.

Technological Forces:

New technologies such as: •the Internet of Things •3D printing •the cloud •mobile devices •biotech •analytics •autotech •robotics and •artificial intelligence are fueling innovation in many industries, and impacting strategic-planning decisions. •Many firms now have a Chief Information Officer (C IO) and a Chief Technology Officer (C T O) who work together to ensure that information needed to formulate, implement, and evaluate strategies is available where and when it is needed

Why Some Firms Do No Strategic Planning:

No formal training in strategic management; No understanding of or appreciation for the benefits of planning; No monetary rewards for doing planning; No punishment for not planning; Too busy "firefighting" (resolving internal crises) to plan ahead; View planning as a waste of time, since no product/service is made; Laziness-effective planning takes time and effort; time is money; Content with current success; failure to realize that success today is no guarantee for success tomorrow; Overconfidence; Prior bad experience with strategic planning done sometime/somewhere

Financial Benefits:

Organizations using strategic-management concepts show significant improvement in sales, profitability, and productivity compared to firms without systematic planning activities; High-performing firms tend to do systematic planning to prepare for future fluctuations in their external and internal environments

The Five-Forces Model Pt 2:

Potential Entry of New Competitors -Barriers to entry are important -Quality, pricing, and marketing can overcome barriers; Potential development of substitute products -Pressure increases when: Prices of substitutes decrease; Consumers' switching costs decrease; •Bargaining Power of Suppliers is increased when (there are): -Few suppliers -Few substitutes -Costs of switching raw materials is high; Backward integration is gaining control or ownership of suppliers •Bargaining power of consumers -Customers being concentrated or buying in volume affects intensity of competition -Consumer power is higher where products are standard or undifferentiated

Management Information System:

Receives raw material from both external and internal evaluation of an organization; Improves the performance of an enterprise by improving the quality of managerial decisions; Collects, codes, stores, synthesizes, and presents information in such a manner that it answers important operating and strategic questions

Pricing:

Refers to deciding the amount an individual must exchange to receive a firm's product offering.; Pricing strategies are often based on costs, demand, the competition, or on customers' needs.

The Internal Audit:

Requires gathering, assimilating, and prioritizing information about the firm's management, marketing, finance, accounting, production/operations, research and development (R and D), and management information systems operations; Provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole firm

The Five-Forces Model:

Rivalry among competing firms -Most powerful of the five forces -Focus on competitive advantage of strategies over other firms; When the number of competing firms is high When competing firms are of similar size When competing firms have similar capabilities When demand for the industry's products is changing rapidly When price cuts are common in the industry When consumers can switch brands easily When barriers to leaving the market are high When barriers to entering the market are low When fixed costs are high among competing firms When products are perishable or have short product life cycles

Benefits of Strategic Management:

Strategic management allows an organization to be more proactive than reactive in shaping its own future; It allows an organization to initiate and influence (rather than just respond to) activities-and thus to exert control over its own destiny.

Excerpts from Sun Tzu's The Art of War Writings:

Strategic planning is a matter of vital importance to the state: a matter of life or death, the road either to survival or ruin. Hence, it is imperative that it be studied thoroughly; Know your enemy and know yourself, and in a hundred battles you will never be defeated; Skillful leaders do not let a strategy inhibit creative counter-movement

The Resource-Based View (RBV):

The Resource-Based View (R B V) Approach -contends that internal resources are more important for a firm than external factors in achieving and sustaining competitive advantage; Proponents of the R B V contend that organizational performance will primarily be determined by internal resources. These resources can be grouped into -tangible -intangible •For a resource to be valuable, it must be either (1) rare, (2) hard to imitate, or (3) not easily substitutable. •These three characteristics of resources are called Empirical Indicators •These enable a firm to implement strategies that improve its efficiency and effectiveness and lead to a sustainable competitive advantage.

Target Market Analysis:

The examination and evaluation of consumer needs and wants

The Purpose of an External Audit:

The external audit is aimed at identifying key variables that offer actionable responses; Firms should be able to respond either offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats.

Finance/Accounting Functions:

The functions of finance/accounting comprise three decisions: 1.The investment decision 2.The financing decision 3.The dividend decision 1.How has each ratio changed over time? 2.How does each ratio compare to industry norms? 3.How does each ratio compare with key competitors?

Management:

The functions of management consist of four basic activities: •planning •organizing •motivating •controlling

Channels of Distribution:

This is a term that refers to various intermediaries that take a product from a producer to an end customer.; These intermediaries have names such as wholesalers, retailers, brokers, facilitators, agents, vendors, or simply distributors.

Sources of External Information:

Unpublished sources include customer surveys, market research, speeches at professional and shareholders' meetings, television programs, interviews, and conversations with stakeholders.; Published sources of strategic information include periodicals, journals, reports, government documents, abstracts, books, directories, newspapers, and manuals. •IBISWorld •Lexis-Nexis Academic •Lexis-Nexis Company Dossier •Mergent Online •PrivCo •Regional Business News •S&P NetAdvantage •Value Line Investment Survey •U.S. Securities and Exchanges Commission •Company Annual Reports On-Line (CAROL)

Pitfalls in Strategic Planning:

Using strategic planning to gain control over decisions and resources; Doing strategic planning only to satisfy accreditation or regulatory requirements; Too hastily moving from mission development to strategy formulation; Not communicating the plan to employees, who continue working in the dark; Top managers making many intuitive decisions that conflict with the formal plan; Top managers not actively supporting the strategic-planning process; Not using plans as a standard for measuring performance; Delegating planning to a "planner" rather than involving all managers; Not involving key employees in all phases of planning; Not creating a collaborative climate supportive of change; Viewing planning as unnecessary or unimportant; Viewing planning activities as silos comprised of independent parts; Becoming so engrossed in current problems that insufficient or no planning is done; Being so formal in planning that flexibility and creativity are stifled

The AQCD Test:

When identifying and prioritizing key external factors in strategic planning, the following 4 factors are important: -Actionable -Quantitative -Comparative -Divisional The AQCD is a measure of the quality of an external factor

The strategic-management model:

Where are we now? Where do we want to go? How are we going to get there?

Considerations:

•Do not offer me things. •Do not offer me clothes. Offer me attractive looks. •Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. •Do not offer me a house. Offer me security, comfort, and a place that is clean and happy. •Do not offer me books. Offer me hours of pleasure and the benefit of knowledge. •Do not offer me C Ds. Offer me leisure and the sound of music. •Do not offer me tools. Offer me the benefits and the pleasure that come from making beautiful things. •Do not offer me furniture. Offer me comfort and the quietness of a cozy place. •Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits. •Please, do not offer me things.

Vision Statement Examples:

•Dr Pepper Snapple: to be the best beverage business globally; our brands are synonymous with refreshment, fun, and flavor today and tomorrow. •Starbucks: to be the premier purveyor of the finest coffee in the world while maintaining uncompromising principles as we steadily grow.

Political, Governmental, and Legal Variables:

•Natural environmental regulations •Protectionist actions by countries •Changes in patent laws •Equal employment opportunity laws •Level of defense expenditures •Unionization trends •Antitrust legislation •U S A versus other country relationships •Political conditions in countries •Global price of oil changes •Local, state, and federal laws •Import-export regulations •Tariffs, particularly on steel and aluminum •Local, state, and national elections

Barriers to Entry:

•Need to gain economies of scale quickly •Need to gain technology and specialized know-how •Lack of experience •Strong customer loyalty •Strong brand preferences •Large capital requirements •Lack of adequate distribution channels •Government regulatory policies •Tariffs •Lack of access to raw materials •Possession of patents •Undesirable locations •Counterattack by entrenched firms •Potential saturation of the market

Integrating Strategy and Culture:

•Organizational culture significantly affects planning activities. •If strategies can capitalize on cultural strengths, such as a strong work ethic or highly ethical beliefs, then management often can swiftly and easily implement changes.

The Basic Functions of Management:

•Planning: forecasting, establishing objectives, devising strategies, and developing policies •Organizing: organizational design, job specialization, job descriptions, span of control, coordination, job design, and job analysis •Motivating: leadership, communication, work groups, behavior modification, delegation of authority, job enrichment, job satisfaction, needs fulfillment, organizational change, employee morale, and managerial morale •Controlling: quality control, financial control, sales control, inventory control, expense control, analysis of variances, rewards, and sanctions. Controlling refers to all those managerial activities directed toward ensuring that actual results are consistent with planned results.

Key SCDE Variables:

•Population changes by race, age, and geographic area •Regional changes in tastes and preferences •Number of marriages •Number of divorces •Number of births •Number of deaths •Immigration and emigration rates •Social Security programs •Life expectancy rates •Per capita income •Social media pervasiveness •Attitudes toward retirement •Energy conservation •Attitudes toward product quality •Attitudes toward customer service •Pollution control •Attitudes toward foreign peoples •Energy conservation •Social programs •Number of churches •Number of church members •Social responsibility issues

Economic Forces:

•Shift to service economy •Availability of credit •Level of disposable income •Propensity of people to spend •Interest rates •Inflation rates •G D P trends •Consumption patterns •Unemployment trends •Value of the dollar •Import/Export factors •Demand shifts for different goods and services •Income differences by region and consumer group •Price fluctuations •Foreign countries' economic conditions •Monetary and Fiscal policy •Stock market trends •Tax rate variation by country and state •European Economic Community (E E C) policies •Organization of Petroleum Exporting Countries (O P E C) policies

Importance of Vision and Mission Statements:

•To make sure all employees/managers understand the firm's purpose or reason for being. •To provide a basis for prioritization of key internal and external factors utilized to formulate feasible strategies. •To provide a basis for the allocation of resources. •To provide a basis for organizing work, departments, activities, and segments around a common purpose.