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TEN WONDERFUL STRATEGIC INTENT OR BREAK THROUGH

STRATEGIC INTENT

NITESH V NAIR

S4 MBA, A-Batch

Reg:No: 1005321

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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.

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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.”

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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.

Attributes of Strategic Intent

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Sense of Destiny : Strategic intent has an emotional edge to it. It is an end result that employees perceive as inherently worthwhile.

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.

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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.

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10 WONDERFUL STRATEGIC INTENT

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NEC (Nippon Electric Company) a much smaller Japanese company overtook and repulsed a much

larger American company GTE (now Verizon). NEC set their strategic intent as ‘computers and communication’ or ‘C&C’. They forecasted that five to eight years ahead these two disparate technologies will merge and innovative products would flow out from this fusion such as mobile communication devices that have captured the markets. They developed the appropriate strategic architecture (road map) that guided their strategic moves to acquire appropriate companies and technologies to fill their own gaps

NEC versus GTE

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Komatsu vision was to be among the top in the world and it declared a bold strategic intent. The story of

Komatsu versus the world leader the American Caterpillar Tractor Company reveals how a smaller company can take-on a much larger adversary successfully.Caterpillar a world leader wanted to monopolize the Japan market.The main competitors they faced within the Japanese market were Komatsu and Mitsubishi. Komatsu was especially dangerous to Caterpillar as they were the second largest company worldwide.Due to this danger Caterpillar decided to penetrate the Japanese market through a joint venture with Mitsubishi.

Komatsu versus Caterpillar

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The leadership at Tata’s set a strategic intent to manufacture the world’s cheapest car a ‘people’s car’ within a time-bound schedule – despite all odds.

Tata’s Nano

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Canon rallied its organization with the war cry ‘Beat Xerox’. It set an objective to manufacture a small home-copier priced reasonably as against Xerox large expensive machines.

Canon

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Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.

Hero Honda

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• Cadbury India has defined its Vision as "Life Full Of Cadbury and Cadbury Full of Life".

• Therefore at Cadbury India, it's all about work hard, play harder!. We bring moments of delight to our consumers everyday and every time. 

• To approach the middle level and rural market cadbury had launched chocolates a Rs 2 version of its flagship brand Cadbury Dairy Milk, called CDM Shots, as well as bournvita with Rs 10 pack

Cadbury India

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Coca-Cola’s strategic intent was for there to be a Coke within the reach of every human being on the planet. This seemed like a crazy idea at the time, but think about how prevalent Coke products are these days. By setting a developing a vision of the future and developing long-term goals, Coca-Cola made enormous strides in developing their brand. 

Coca-Cola

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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.

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RIL always believed, “If you want to become world-class company, you must have world-class technology and world-class people. For world-class technology, RIL acquired best-in-class 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.

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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. IOC’s 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.

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Mission : Maintaining national leadership in oil refining, marketing, and pipeline transportation.

Objectives : Focusing on cost, quality, customer care, value addition, and risk management.

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In the 1990s Chairman Lee Kun Hee emphasized Samsung’s long-term interest in China as one inextricably entwined with its own survival. When Samsung and other Korean companies started moving into China the aim was to access low cost manufacturing centers. The companies in China began catching up with their Korean counterparts much faster than predicted.

Samsung’s China strategy

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In response Samsung altered its strategy by viewing China as a strategic market rather than manufacturing and differentiated itself by focusing on products and services and targeting the premium niche. Samsung aggressively advances to capture the top five percent of the market.

CONT…

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Conclusion –

an organization can use different ways to pursue its Vision – leadership, communication, empowerment, culture and values. Strategic intent is yet another way especially when the situation is adverse. All these great organizations and their leaderships had faith in themselves.

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THANK YOU !