Saylor URL: http://www.saylor.org/books Saylor.org
prepared to adjust its plans. Different factors are relevant for different companies. Once a company has
analyzed its internal and external environments, managers can begin to decide which strategies are best,
given the firm’s mission statement.
REVIEW QUESTIONS
- What factors in the external environment are affecting the “Big Three” U.S. automobile manufacturers?
- What are some examples of Walmart’s strengths?
- Suppose you work for a major hotel chain. Using Porter’s five forces model, explain what you need to
consider with regard to each force.
[1] PepsiCo, Inc., “PepsiCo Brands,” [http://www.pepsico.com/Company/Our-Brands.html(accessed](http://www.pepsico.com/Company/Our-Brands.html(accessed) December 7,
2009).
[2] Michael E. Porter, Competitive Strategy (New York: The Free Press, 1980), 3–33.
[3] Michael E. Porter, Competitive Strategy (New York: The Free Press, 1980), 4.
[4] Michael E. Porter, Competitive Strategy (New York: The Free Press, 1980), 3–33.
[5] PepsiCo, Inc., “Our Mission and Vision,” http://www.pepsico.com/Company/Our-Mission-and-
Vision.html (accessed December 7, 2009).
[6] United Way Worldwide, “Mission and Vision,” http://www.liveunited.org/about/missvis.cfm (accessed
December 7, 2009).
2.4 Developing Organizational Objectives and Formulating
Strategies
LEARNING OBJECTIVES