Businesses must periodically evaluate their strategies to ascertain how well their objectives have been accomplished.
Performing S.W.O.T analysis involves identifying and recording the strengths, weakness, opportunities and threats concerning a chosen strategy.
It should be noted that the analysis recognizes exogenous and endogenous factors. In other words, the analysis takes into account internal resources and capabilities (strengths and weaknesses) and factors external to the organization (opportunities and threats).
MISSION STATEMENT AND BUSINESS STRATEGY
The mission statement establishes the overall purpose of an organization in simple, clear statement of intent.
This guides policy formulation but is not a substitute for it and it must be meaningful. For example, Perchstone and Graeys, a leading law firm, coined her mission statement as follows: Perchstone and Graeys is a leading Nigerian Law Firm with an innovative approach to delivering exceptional legal solution.
What we find is that most business managers formulate fanciful mission statement without any meaningful strategy to give effect to the stated mission.
A well-articulated mission statement gives a direction of what needs to be covered in the business strategy.
In some cases the mission may be to run competitors out of business so as to have a secured market on the long run. This compares favourably with the mission of a Japanese car manufacturer whose mission statement was “kill Porsche”
As expected, such a car manufacturer will produce high quality cars at lower prices in order to make inroads into Porsche market whilst Porsche response was to redefine her niche market.
In closing it is important to reiterate that the mission statement and business strategy are coterminous.