CHAPTER TWO

Strategy formulation
The Business Mission
 Strategic intent:

Strategic intent is a high-level statement

of the means by which your organization
will achieve its vision. It is a statement
of design for creating a desirable future
(stated in present terms).
 CONT…
 Simply put, a strategic intent is
your company's vision of what it
wants to achieve in the long term.
Strategy should be a stretch
exercise, not a fit exercise.
Strategic intent is about clarity,
focus and inspiration.
 VISION

 Corporate vision is a short and

inspiring statement of what the
organization intends to become and to
achieve at some point in the future,
often stated in competitive terms.
Vision refers to the category of
intentions that are broad, all-inclusive
and forward-thinking. 
 CONT…
 It is the image that a business must
have of its goals before it sets out to
reach them. It describes aspirations
for the future, without specifying
the means that will be used to
achieve those desired ends .
CONT…

 Strategic vision is concerned with “where we

are going and why,” i.e. it portrays a
company’s future business scope.
 MISSION

 Mission Statement describes what

business you’re in and who your
customer is. As such, it captures the
very essence of your enterprise - its
relationship with its customer.
 Developing mission statement is the
step which moves your strategic
planning process from the present to the
future.
 CONT…
 It depicts the mission statement
connects “today” with the “future.”
Your mission statement must
“work” not only today but for the
intended life of your strategic plan
of which your mission statement is
a part.
CONT…

 A company’s mission statement usually deals

with the company’s present business scope and
purpose-“where we are now, what we do, and
why we are here.” Mission has a societal
orientation and is a statement which reveals
what an organization intends to do for a society.
 NATURE OF BUSINESS MISSION

 It gives social reasoning. It specifies the role

which the organization plays society. It is the
basic reason for existence
 It is philosophical and visionary and relates to
top management values. It has long term
perspective.
 It legitimizes societal existence
 It reflects corporate philosophy, identity,
character and image of organization.
 VALUES
 For any statement, whether mission or vision, to be
embraced and acted upon, it must reflect the values of
your organization.
 Values describe what your management team really cares
about. What it holds dear. What “makes ‘em tick.” How
would your managers respond to a trade-off between
product quality and profit? That’s really a question of
value.
CORPORATE GOALS & OBJECTIVES
Objectives are statements of
desired outcomes or
expectations

“Managing Without
Objectives Is Like Taking A
Trip Without Knowing The
Destination”
 MANAGEMENT BY OBJECTIVES (MBO)
 COMPANY
 PLANS

DEPARTMENTAL
& INDIVIDUAL
IMPROVEMENT
PLANS
PLAN together MANAGERS’
PLANS
Implement together
Review together

REVIEW CONTROL OF
MEETINGS INFORMATION
 SETTING OBJECTIVES

What is to be
accomplished

How will it be Who is

accomplished The
responsible
OBJECTIVE

When is it to be
accomplished
 CONT…

Role of Objectives:
1. Legitimacy
2. Direction

3. Coordination
4. Benchmarks for success

5. motivation
CHARACTERISTICS OF OBJECTIVE

 Objective form a Hierarchy

 Network
 Multiplicity of Objective
 Long and short-range objective
 GOALS AND OBJECTIVES

GOALS OBJECTIVES
 Specific
 Broad Statements
 Precise
 General Intentions
 Tangible
 Intangible
 Concrete
 Abstract
 Measurable
 Generally hard to
measure
Thank You