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1
Environmental structure
General environment
Social, economic, political, legal, technical
Operating environment
International, supplier, labor, competition,
customer
Internal environment
Organizational, marketing, financial,
personnel, production
2
Establish organizational
direction
Establishing an organizational
direction for the company involves
determining two indicators:
Organizational mission – the reason
why the organization exists
Objectives – measurable targets to
track the growth of the business
3
Key objective areas
Market standing
Innovation
Productivity
Resource levels
Profitability
Manager performance and development
Worker performance and attitude
Social responsibility
4
Types of objectives
Profitability R&D
Growth Diversification
Market share Efficiency
Social responsibility Financial stability
Employee welfare Resource
Product Quality conservation
Service Mgt & labor
development
5
Strategy formulation
What are the purpose(s) and objective(s)
of the organization?
Where is the organization presently
going?
What critical environmental factors does
the organization currently face?
What can be done to achieve
organizational objectives more
effectively in the future?
6
Growth-share matrix
22
Stars Question Marks
20
18
Market Growth Rate (percent)
14
12
10
Cash Cows Dogs
8
Financial strategy
Marketing strategy