MSc – Agricultural Economics and Management Fundamentals of Management BSc Agricultural Economics and Management Fundamentals of Management wk 3– External analysis and Organisation’s Vision/Mission Richard Selby

MSc – Agricultural Economics and Management Fundamentals 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 Management Fundamentals of Management BSc Agricultural Economics and Management External environment Everything which influences the organisation from the outside, such as:

MSc – Agricultural Economics and Management Fundamentals 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 Management Fundamentals of Management BSc Agricultural Economics and Management What to include? A checklist: Sociological considerations Technological considerations Economic considerations Political considerations

MSc – Agricultural Economics and Management Fundamentals 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 Management Fundamentals 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 of the initial letters

MSc – Agricultural Economics and Management Fundamentals 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 the same reason

MSc – Agricultural Economics and Management Fundamentals 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 Management Fundamentals 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 Management Fundamentals 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 Management Fundamentals 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 Management Fundamentals 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 Management Fundamentals of Management BSc Agricultural Economics and Management End of part 1…… ……part 2

MSc – Agricultural Economics and Management Fundamentals 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 Management Fundamentals 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 Management Fundamentals 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 Management Fundamentals 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

MSc – Agricultural Economics and Management Fundamentals 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

MSc – Agricultural Economics and Management Fundamentals 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 Management Fundamentals 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 Management Fundamentals of Management BSc Agricultural Economics and Management Thanks for your attention! Copies of this presentation are on Moodle