Following is a list of some well-kn

Following is a list of some well-known companies and parts of their mission statements:
Dell Computer Corporation: “to be the most successful computer company in the
world”
Delta Air Lines: “worldwide airlines choice”
IBM: “translate advanced technologies into values for our customers as the world’s
largest information service company”
Lowe’s: “helping customers build, improve and enjoy their homes”
Ryder: “offers a wide array of logistics services, such as distribution management,
domestically and globally”
The mission defines the company. In order to develop a long-term plan for a business,
you must first know exactly what business you are in, what customers you are
serving, and what your company’s values are. If a company does not have a welldefined
mission, it may pursue business opportunities about which it has no real
knowledge or that are in conflict with its current pursuits, or it may miss opportunities
altogether.
For example, Dell Computer Corporation has become a leader in the computer industry
in part by following its mission. If it did not follow its mission, Dell might decide
to pursue other opportunities, such as producing mobile telephones similar to
those manufactured by Motorola and Nokia. Although there is a huge market for mobile
telephones, it is not consistent with Dell’s mission of focusing on computers.
Environmental Scanning
A second factor to consider is the external environment of the business. This includes
trends in the market, in the economic and political environment, and in society.
These trends must be analyzed to determine business opportunities and threats.
Environmental scanning is the process of monitoring the external environment. To
remain competitive, companies have to continuously monitor their environment
and be prepared to change their business strategy, or long-range plan, in light of environmental
changes.
What Does Environmental Scanning Tell Us? Environmental scanning allows a
company to identify opportunities and threats. For example, through environmental
scanning we could see gaps in what customers need and what competitors are doing
to meet those needs. A study of these gaps could reveal an opportunity for our company,
and we could design a plan to take advantage of it. On the other hand, our company
may currently be a leader in its industry, but environmental scanning could
reveal competitors that are meeting customer needs better—for example, by offering a
wider array of services. In this case, environmental scanning would reveal a threat and
we would have to change our strategy so as not to be left behind. Just because a company
is an industry leader today does not mean it will continue to be a leader in the
future. In the 1970s Sears, Roebuck and Company was a retail leader, but it fell behind
the pack in the 1990s.
What Are Trends in the Environment? The external business environment is always
changing. To stay ahead of the competition, a company must constantly look out
for trends or changing patterns in the environment, such as marketplace trends. These