STRATEGIC INTENT

Shikha Sota

Strategic Intent

Shikha Sota

Refers to the purpose that organisation strive for

What a firm should set out to achieve

E.g. Reliance- being a global leader in its field of activity by being the lowest cost producer of Polyester products

Vision

Shikha Sota

What a firm would ultimately like to become

Future aspirations that lead to an inspiration

It is more dreamt of than articulated

Example

Shikha Sota

Indian Oil Corporation

“Indian Oil 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.”

Benefits of Having a Vision

Shikha Sota

Inspiring and exhilarating Helps in creation of common identity

and a shared sense of purpose Foster risk taking and

experimentation Foster long term thinking

Envisioning

Shikha Sota

Mission

Shikha Sota

Answers the following questions What an organisation is? Why it exists? What is should be?

Purpose or reason for the organization’s existance

Examples

Shikha Sota

• Indian Oil Corporation-Maintaining national leadership in Oil refining, marketing, and pipeline transportation

• HCL-To be a world class competitor

• Marico Industries-the Three P’s of Marico: People, Products and Profits

Characteristics of Mission statement

Shikha Sota

Feasible Precise Clear Motivating Distinctive Indicate objectives to be accomplished

Business Definition

Shikha Sota

Three dimensions of business (Derek Abell)Customer functions

Alternative technologiesCustomer

groups

Example (Watch)

Shikha Sota

Customer groups

Customer functions

Alternative technolog--ies

Goals

Shikha Sota

What an oaganisation hopes to achieve

Consists of various financial & non-financial issues

Generalised qualitative

Objectives

Shikha Sota

Ends that state specifically how goals should be achieved

Objectives makes goals operational Concrete Generally quantitative Sometimes used interchangeably

with goals

Goals Vs. Objectives Temporal, Time-phased

& superceded by subsequent goals

Stated in specific terms

Focused on internal environment

Measurement in absolute terms

Timeless, Enduring & Unending

Stated in general terms

Focused on external environment

Measurement in relative terms Shikha Sota

Goals Objectives

Role of objectives

Shikha Sota

Define organization’s relationship with its environment

Help an organization to pursue its vision & mission

Provide the basis for strategic decision making

Provide standards for performance appraisal

Characteristics of objectives

Shikha Sota

Understandable Concrete and specific Related to time frame Measurable and controllable Challenging Correlate with each other Set with in constraints

Issues in objective setting

Shikha Sota

Specificity Multiplicity Periodicity Verifiability Reality Quality

What objectives are set?

Shikha Sota

Market standing Innovation Productivity Physical and financial resources Profitability Manager performance and development Worker performance and attitude Public responsibility

Peter F. Drucker

How are objectives formulated?

Shikha Sota

The forces in the environment Realities of enterprise resources and

internal power relationships The value system of the top

executive Awareness by management

Critical Success Factors

Shikha Sota

Refers to key factors to success

CSF for Footwear industry High manufacturing quality Cost efficiency Sophisticated retailing

CSF for Courier services Speedy dispatch Reliability Price