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the other areas. Figure 5 Strategic Planning: First Stage ? Mission statement: a formal statement in an anization’s strategic plan that describes the overall purpose of the anization and what it intends to achieve in terms of its customers, products, and resources. ? A mission statement should: – provide direction to all stakeholders as to why the anization exists. – be framed in terms that are neither too narrow or too broad – relate to a higher purpose other than just providing a return to shareholders(?) – match objectives to capabilities. – be revisited and updated as the anization changes 6 Strategic Planning: Second Stage ? SWOT analysis: an analysis of an anization’s strengths and weaknesses and the opportunities and threats in its external environment. ? Internal environment: the controllable elements inside an anizations, including its people, its facilities, and how it does things that influence the operations of the anization. ? External environment: the uncontrollable elements outside of the anization that may affect its performance either positively or negatively. Strength Internal factors Positive Weakness Internal factors Negative Opportunity External factors Positive Threat External factors Negative 7 Strategic Planning: Third Stage ? Objectives: specific acplishments or outes that an anization hopes to achieve by a specific time. ? Objectives are developed from the mission statement ? Can be expressed in terms of: – Performance measures such as sales revenue, profitability (ROI), market share – Product terms such as innovation, industry leadership, quality – Customer terms such as satisfaction – Social responsibility ? To be effective, an objective needs to pass the SMART test. Specific Measurable Attainable Realistic Timebounded 8 The Business Portfolio ? Strategic busines