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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
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
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…!
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
External environment
Everything which influences the organisation
from the outside, such as:
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
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:
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
What to include?
A checklist:
• Sociological considerations
• Technological considerations
• Economic considerations
• Political considerations
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
What to include?
A checklist:
• Sociological considerations
• Technological considerations
• Economic considerations
• Political considerations
Often called STEP analysis because
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
What to include?
A checklist:
• Sociological considerations
• Technological considerations
• Economic considerations
• Political considerations
Often called STEP analysis becauseof the initial letters
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
What to include?
A checklist:
• Political considerations
• Economic considerations
• Sociological considerations
• Technological considerations
Or sometimes PEST analysis for thesame reason
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Sociological“Socio-cultural”
• Changes in lifestyles• Demographics• Education• Health• Income• Work vs leisure• Environmental issues
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Technological
• New products/expectations – (incl. quality)
• Speed of change
• Competition
• Investment policies– (incl. Local, Regional, National, International)
• Legal/regulatory issues
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Economic
• Interest rates
• Exchange rates
• Investment – from all sources
• Consumer disposable income
• Tax policies
• Incentives
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Political
• Government policies
• Government stability
• State-owned vs privately owned
• Legal and regulatory issues
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Sometimes two more headings are added to the checklist:
STEP +
Environmental issues, and
Legal issues
However, I have included these in my STEP
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
End of part 1……
……part 2
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Vision and Mission
• A Vision statement is a declaration of where you would like to be
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Vision and Mission
• A Vision statement is a declaration of where you would like to be
• A Mission statement expresses the purpose of the organisation
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Vision and Mission
• A Vision statement is a declaration of where you would like to be
• A Mission statement expresses the purpose of the organisation
The two are complimentary – the Mission is
how you get to the Vision
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
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
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
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
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
“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!
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Language
It must also be written in clear, unambiguous language which everyone can understand
at every level!
MSc – Agricultural Economics and ManagementFundamentals of Management
BSc Agricultural Economics and Management
Thanks for your attention!
Copies of this presentation are on Moodle
