Strategic Intent

Introduction
The concept of strategic intent, popularized by Gary Hamel and C.K. Prahalad It refers to the purpose of the organization and the ends its wishes to pursue The strategic intent of the firm represents the organizations belief about its state of future

Hierarchy of Strategic Intent

vision mission

Business definition
Goals

Objectives

Vision
Vision is the art of seeing things invisible
Jonathan Swift

How can you lead if you do not know where are you going? Managements job is not to see the company as it isbut as it can become.
John W Teets, CEO, Greyhound Corporation

Conti
Vision statement indicates what the company wants to create in the future A clear vision is essential to develop an appropriate mission statement Vision:
what do we want to create? Where do we want to go?

Vision
According to Kottler,
Vision is a description of something ( an organization, corporate culture, a business technology, an activity) in the future

A strategic vision is a road map of companys future providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop and the kind of company that management is trying to create

Characteristics: Mental Exercise: it is an exercise in thinking carefully about where a company needs to head to successful

Reflect the future plan Dynamic and flexible Anticipates future:

force manager to think both creatively and realistically about regulatory, social condition, companies resource and capabilities

Conti.
Simple and concise: Well defined

Common shortcomings in Company Vision Statement:

Incomplete Vague Bland: lacking in motivational power Not distinctive

Cont..
Advantages: Good vision are inspiring and exhilarating Company knows what it is to be Foster long-term thinking Helps in creation of common identity and shared a purpose Foster risk-thinking It represent integrity

Mission
Thompson (1997) defines mission as the, essential purpose of the organization, concerning particularly why it is in existence, the nature of the business(es) it is in and the customer it seeks to serve and satisfy Hero cycle, its our mission to strive for a synergy between technology, systems and human resource, to produce product and services that meet the quality, performance and price aspiration of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities

Conti
Mission Statement is
An enduring statement of purpose Distinguish one firm from another in the same business A declaration of a firms reason for existence

Characteristics
It should be feasible It should be precise It should be clear It should be motivating It should be Distinctive It should indicate major components of strategy It should indicate how objectives are to be accomplished

Business Definition
A business definition is a clear statement of the business the firm is engaged in or is planning to enter. It answers the question: what is our business, in a precise way. Consider the statement: we are in the beauty-enriching business ( Helen and Curtis)

Dimensions of Business Definition

Customer function:- utility/ornamental Alternative technology:- mechanical/quartz Customer group :- children, men or women

Business Model
Business model are often expressed in the form of a question: how does the organization make money? For example:- e-news paper are able to offer free internet edition on account of the online advertisement revenues they earn from the advertisement

Cont.
Business models have an intimate relationship with the strategy of an organization. Companies in the same industry, competing with each other, can rely on different models as a matter of strategic choice. For example: Tata consultancy services adopts a traditional fixed-time business model where payments by client based on time.

Cont.
Infosys and Wipro have work based model where payment by client based on work done rather than time elapsed.

Goals and Objectives

Goals denote what an organization hops to accomplish in a future period of time. Objectives are the ends that state specifically how the goals shall be achieved

Roles of the objective

Objectives defines the organizations relationship with its environment Objectives help an organization pursue its vision and mission Objectives provides the standards for performance appraisal

Examples
to be market leader in our industry

to increase market share to maintain level of 40% of the total with respect to product A, over a period of the next two years and to maintain in thereafter is a good objective since it is specific, relates to performance, is measurable and provides a definite direction.

Characteristics of Objective
It should be understandable it should be concrete and specific It should be related with time frame It should be measurable and controllable It should be challenging Different objective should correlate with each other It should be set within constraints

Issues in objective setting

Specificity Multiplicity Periodicity Verifiability Reality Quality