Strategic Intent :

Strategic Intent Like individuals, organizations must define what they want to do and why they want to do this. This why they want to do underlies the end result that is likely to be achieved through what they want to do. In management literature, this end result is referred to as strategic intent. Strategic Intent has a hierarchy vision, mission, and goals & objectives. Strategic intent is defined as Strategic intent envisions a desired leadership position and establishes the criterion the organization will use to chart its progress.

Attributes of Strategic Intent :

Attributes of Strategic Intent Sense of Direction : Strategic Intent implies a particular view about long-term market or competitive position that an organization hopes to build in future. It should be a view of the future conveying a sense of direction. Sense of Discovery : Strategic intent is differential as each organization differs from others; it implies a competitively unique point of view about the future. It holds out to employees of exploring new competitive territory. Sense of Destiny : Strategic intent has an emotional edge to it. It is an end result that employees perceive as inherently worthwhile.

Strategic Intent of Reliance Industries :

Strategic Intent of Reliance Industries Dhirubhai Ambani, promoter of RIL, started a business of exporting rayon, cashew nuts, and spices and importing nylon in 1959 with a meager capital of Rs. 15,000/-. This business grew and he established a synthetic fabric mill in 1966. This mill was upgraded continuously and by 1975, it was rated as one of the best mills in India by a team of World Bank. Afterward, it went for backward integration at successive levels and, today, it has become a petrochemical company and has occupied number one position in Indian Provate sector.

Strategic Intent of Reliance Industries :

Strategic Intent of Reliance Industries In 1970s, Dhirubhai Ambani told one of his close colleagues, do you know who these Tatas and Birlas are? We have to get past them one day. I have inherent desire to become number one industrialist of the country. This intent of Dhirubhai became the strategic intent of RIL. RIL pursued its growth strategy relentlessly. RIL always believed, If you want to become world-class company, you must have worldclass technology and world-class people. For world-class technology, RIL acquired best-inclass technology. For people mobilization, RIL adopted the approach, If you are a big fish, small pond will not suit you. Come and join the best-in-class company. The result is: RIL has a very high percentage of Indian repatriate employees. For mobilizing financial resources, RIL relied on public participation.

Hierarchy of strategic Intent :

Hierarchy of strategic Intent

Strategic Intent of Indian Oil Corporation :

Strategic Intent of Indian Oil Corporation IOC is the largest Indian company engaged in the business of crude oil refining and offers a variety of products related to oil sector. IOCs strategic intent consists of the following elements in the order given below: Vision : IOC aims to achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through quality products and services. Mission : Maintaining national leadership in oil refining, marketing, and pipeline transportation. Objectives : Focusing on cost, quality, customer care, value addition, and risk management.

Vision :
Vision Burt Nanus, a well-known expert of organizational vision, has defined vision as a realistic, credible, and attractive future for an organization. Realistic : A vision must be based on reality to be meaningful for an organization; it should not be merely day-dreaming but a dream to be converted into reality. Credible. A vision must be believable to be relevant to members of the organization concerned. One of the purposes of a vision is to aspire those in the organization to achieve a level of excellence, and to provide direction for their actions. Attractive. A vision must be attractive so as to inspire and motivate organizational members. People must want to be a part of the future that is envisioned for the organization. Future. A vision is not for the present; it is for the future. Simply, a vision is not where an organization is now but where it will be in future.

Slide 8:
Oren Harari, another expert on organizational vision, defines vision as A vision describes a set of ideals and priorities, a picture of the future, a sense of what makes the company special and unique, a core set of principles that the company stands for, and a broad set of compelling criteria that will help define organization success. Features of a Good Vision: A good vision is idealistic (vision should be realistic so that people believe that it is achievable, but idealistic enough so that it can not be achieved without stretching. A good vision clarifies direction of the organization concerned (where the organization go in future?) A good vision inspires organizational members and encourages commitment from them. A good vision reflects the uniqueness of the organization, its distinct competence, what it stands for, and what it is able to achieve. A good vision is appropriate for the organization and for the times. It implies that the vision should be consistent with organizations values and culture and its place in its environment. A good vision is well articulated and easily understood by those who are responsible to convert it into reality.

Examples of Vision :
Examples of Vision RIL To achieve global leadership in polymers, fibres and resin businesses through innovative research and technology development in materials, products, and applications through efficient, disciplined, target-oriented, and cost-effective research

and development activities. Infosys To be a globally respected company that provides best of breed software solutions by best-in-class people. Tata Tea to be Indias foremost teabased beverage company. Dihe - to provide dynamic learning environment by imparting holistic education to develop outstanding professionals and entrepreneurs who exemplify humanistic values, are socially responsible stewards and create and dissemination practitioner - oriented knowledge that will uplift society.

Role of Vision in Strategy Formulation :

Role of Vision in Strategy Formulation Vision provides clue about where the organization is heading for in future. Since various strategies try to ensure that the organization reaches its destination, these should be in accordance with the vision. Vision of an organization tries to place it in a unique position which requires unique actions. These actions are defined by various strategies. Since vision is a source of inspiration to organizational members and encourages them for commitment, they tend to give their full contributions in strategy formulation and implementation.

Developing a vision :
Developing a vision Developing a vision is like having a dream to be converted into reality in future. Following steps are relevant for development of a vision: Conducting a vision audit to assess the current direction and momentum of the organization. Targeting the vision What are the boundaries and constraints to the vision? What must be the vision accomplish? What critical issues must be addressed in the vision? Setting the vision context identifying what the organizations future environment might look like. Developing the future scenarios Generating the alternative visions Choosing the Final Vision

Mission :
Mission The company mission is defined as the fundamental unique purpose that sets a business apart from other firms of its type and identifies its scope of its operations in product and market terms. Difference between Vision and Mission The essence of vision is forwardlooking view of what an organization is to become in future, mission states what the organization is and why it exists. While vision places emphasis on visionary long-term concept of the organization with very high level of achievement, mission deals mostly with how the organization will interact with various stakeholders, products/services it offers, and the way these are offered.

Mission Statement :
Mission Statement Mission statement is the description of organizational mission. Explicit mission statement is desirable as it serves the purpose of communicating to the organizations members about the corporate philosophy, character, and image of the organization which govern their behavior in the organization. Following points should be considered while preparing the mission statement: Mission should be clear, both in terms of intentions and

words used. It should be feasible, neither too high to be unachievable, nor too low to demotivate the people for work It should be precise but explanatory, neither too narrow so as to restrict the organization's activities, nor too broad to make itself meaningless. It should be distinctive, both in terms of the organizations contributions to the society and how these contributions can be made.

Examples: Mission Statements of :

Examples: Mission Statements of Infosys: To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large." Tata Tea: Achieve market and thought leadership for branded tea in India Be recognized as the foremost innovator in tea and tea based beverage solutions Drive long-term profitable growth Co-create enhanced value for all stakeholders Make Tata Tea a great place to work DIHE : To provide world-class professional education in the field of management by providing high quality instructions, excellent academic and research environment which will help our young scholars to develop competencies in dealing with global complexity, emerging technologies and changes and social and cultural diversity.

Example : Tata International :

Example : Tata International Vision : To be the Leading International Business Company of the country and International Arm of the Tata Group, with a significant overseas reach, presence and linkages, and with focus on facilitating globalization of Tata Groups core business. Mission: Promote the Tata Brand Equity internationally. Promote internationally, products and services from the Tata Group, as also from other utility conscious Indian and overseas companies. Source world-class products and services for marketing in India. Promote businesses with strong comparative advantages for the company, and upgrade the companys strengths in the areas of technology, marketing, and finance. Identify global sources of technology, marketing, and finance and other services to facilitate strategicalliances, joint ventures, and collaborations of Tata-group, in India and overseas. Be a market driven company and continually strive to stakeholder value and satisfaction through consistent quality in all areas of our operations. Nurture and develop human resources, to enable us to undertake the challenges of leadership and innovation, in our areas of activity.

Role of Mission in Strategy Formulation :

Role of Mission in Strategy Formulation Organizational Mission, when clearly defined, helps strategists in formulating their strategies in the following ways: It helps in deciding the direction in which the organization proceeds. The strategic actions needs to be aligned to these. It helps the organization to clarify its aspirations and those of various stakeholders. It serves as a reference point in dealing with its various stakeholders within and outside the organization. It helps in integrating the organization with its relevant environment by taking suitable actions the way these have been specified in the mission. It helps in integrating the various subsystems of the organization as these subsystems look at their objectives and operations in the light of organizational mission. It conveys clear message about the organization to those outsiders who come in contact with it. They develop positive attitudes towards organization if they are well aware about its mission.

Components of Mission :
Components of Mission Organizations Self-concept (Identity) Its role in the industry, change agent or follower Organizations Philosophy (Creed or ethos) Assumptions, beliefs, values, aspirations etc. Organizational Image External manifestation on the basis of which society and its people create a positive or negative view about the organization Long-term Objectives Survival, growth, profitability, shareholder value Nature of Business Product/service, market segment and technology

Business Definition :
Business Definition A business definition is a clear-cut statement of the business or a set of businesses, the organization engages in presently or wishes to pursue in future. Then it prescribes the arena in which the organization will play and compete. Business can be defined along three dimensions-product, customer, and technology. However, whatever dimension is chosen for defining business, it must reflect two features: focus and differentiation. Focus of business may be defined in terms of the kind of functions the business performs rather than the broad spectrum of industry in which the organization operates. Differentiation in business is how an organization differentiates itself from others so that the business concentrates on achieving superior performance in the market.

Focus in Business Definition :

Focus in Business Definition

Examples of Business Definition :

Examples of Business Definition

The context of defining business :

The context of defining business An organization has to define its business in three contexts: Customer Segment : what is our business is not determined by the producer but by the consumer.by the want the customer satisfies when he buys a product or service Who is the customer? (location, behavior, how to reach) Product : Every organization defines the business it participates in and the product it offers. What does the customer buy? Technology : Technology consists of equipment, machines, tools and other physical aspects , and sets of activities , methods, and processes used for the production and delivery of product. What does the customer consider value?

Example: Hero Honda :

Example: Hero Honda Business Definition: World-class quality auto products that provide the highest level of customer satisfaction. Customer segment: Individuals who enjoy riding motorcycles with perfection, like speed, styles, and fuel economy, located across the country. Product : It emphasizes world-class quality auto products- presently motorcycles, leaving the scope for adding similar other products in future. Initially, it concentrated on fuel-economy and introduced CD-100 with the slogan fill it, shut it, forget it. Later additional features have been added. Technology: The JV with Honda of Japan with core competency in automobile engines provided the needed technological edge. Product-delivery and after-sales activities have been ensure through a network of dealers armed with service centers backed up by qualified technicians trained by the company.

Goals and Objectives :

Goals and Objectives Goals and objectives are the end results which an organization strives for. There may be different ways in expressing end results like market leadership, a certain percentage increase in sales in a particular year etc. These terms are used interchangeably meaning one and the same thing.

Features of Goals and Objectives :

Features of Goals and Objectives SMART S Specific M Measurable A Attainable R Relevant T Time-bound DUMB D Doable U Understandable M Manageable & B Beneficial

Role of Objectives :
Role of Objectives Directions for Decision Making Clear definition of objectives encourages unified planning Objectives work as a motivating force Voluntary coordination is achieved easily if the objectives are clearly specified and mutually agreed upon Performance Standards Objectives provide standard against which performance of the organization can be measured. Basis for Decentralization Integrating Organization, Group and Individual

Factors affecting Objective Setting :

Factors affecting Objective Setting Forces of environment (external stakeholders) Organizations Resources (both human and non-human) and Internal Power Relationships Value System of Top Executives (Ex. - money-oriented vs. philanthropic) Awareness by Management of the past objectives

Issues in Objective Setting :

Issues in Objective Setting Specificity ranges from generalized organizational objectives to specific individual objectives Multiplicity Multiple objectives aimed simultaneously numbers should match KRAs Periodicity Set for different time periods long-term, medium-

term and short-term) Reality should be based on reality of those factors which affect objective setting Quality good-which provide specific direction for action and tangible basis for performance evaluation vs. bad-which fail to do so)

Areas of Objective Setting :

Areas of Objective Setting Growth Volume, turnover, assets Profit RoI, profit margin, shareholder value Marketing Market share, new products, new markets, customer value Employees Attracting and retaining talent, benefits, HRD, IR Social Community Services, Rural Development, Family welfare, Development of ancillary industries

Change in Objectives :
Change in Objectives Change in Aspiration level of Top Management Demand for change by Stakeholders Change in Environment Change in Life-cycle of Organization