Modern Management: concepts and skills, 14/e

Establishing Organizational Direction

The second step of the strategic management process is establishing organizational direction. Through an interpretation of information gathered during environmental analysis, managers can determine the direction in which the organization should move. Two important ingredients of organizational direction are organizational mission and organizational objectives.

Determining Organizational Mission

The most common initial act in establishing organizational direction is determining an organizational mission. Organizational mission is the purpose for which—the reason why—an organization exists. In general, the firm’s organizational mission reflects such information as what types of products or services it produces, ...