Mission and Vision Evaluation
Remember to search for a mission and vision statement then evaluate them (running the mission statement through the mission-statement components. If you cannot find either or both, so note in this report section, and write one for the company.
This part Includes a:
- Vision Statement
- Mission Statement
- List Mission Statement Evaluation Components that are satisfied
- Rationale for the components included as well as excluded.
Begin with a concise company profile followed by 5-10 company milestones. Synthesize the company’s uniqueness and identity. For example, a fun, employee-centered culture or low-cost, no-frills strategy uniquely identifies Southwest Airlines.
Insert your completed EFE Matrix. Discuss the high score factors and interpret the overall score for your reader.
|Your final paper will include:
· An External Factor Evaluation (EFE) Matrix .
o Why is this environmental factor key?
o Why does the factor carry this much weight?
o Why you rated the factor as you did?
· How should management interpret the total weighted score?
How to do an External Assessment
After reading the case, first scan the environment. Use the following steps:
1. List key external factors (opportunities and threats). These factors apply to all firms in the industry, not just this company. Any firm could potentially take advantage of an opportunity or be challenged by a threat because these factors are in the external environment. Include a total of 10-20 factors. Be as specific as possible.
2. Assign a weight to each factor that ranges from 0.0 (not important) to 1.0 (very important). The weight indicates the relative importance of that factor to being successful in the industry. The sum the weights of all factors (for both opportunities and threats combined) must equal 1.0.
3. This is the step at which the company (revlon) enters the picture. Assign a rating between 1 and 4 to each factor to indicate how effectively the firm’s current strategies respond to the factor, where 4=the response is superior, 3=the response is above average,2=the response is average, and 1=the response is poor. Ratings are based on effectiveness of the firm’s (revlon.) strategies. Ratings are company-based, whereas the weights in Step 2 are industry-based. Both threats and opportunities can receive a 1, 2, 3, or 4.
4. Multiply each factor’s weight by its rating to determine a weighted score.
5. Sum the weighted scores for each variable to determine the total weighted score for the organization(Revlon)
Insert your completed IFE Matrix. Discuss the high score factors and interpret the overall score for your reader. Use financial ratios for internal factors too, if applicable. (For example, if the company has a low inventory turnover ratio, this could be a weakness in the IFE Matrix.) See the link below under “Appendix” to help you preliminarily examine the financial ratios.
==> Read on the advantages of debt
Summarize the key strengths, weaknesses, opportunities and threats. Also, consider how well your company is managing both environments. This section serves as a conclusion to Case 1. Simply summarize the key strengths, weaknesses, opportunities, and threats that were prominent in your EFE and IFE matrices. This is not a SWOT Matrix, which is a matching technique. Matching techniques (e.g., the SWOT Matrix) are part of Case 2.