The Phases in Strategic Management

“If you don’t know where

you are going, any road will
take you there.”
The Koran

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“Management’s job is not to
see the company as it is
. . . but as it can become.”
John W. Teets

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 Strategic Intent

 Strategic Intent is” an ambitious and compelling

…..dream that energizes that provides the
emotional and intellectual energy for the journey….
to the future”
 If strategy is the mind ,strategic intent is the soul

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 Attributes of Strategic Intent
Following are the three attributes of strategic intent
1 Sense of Direction:-
Strategic intent implies a particular point of view about the long term market
or competitive position of firm hopes to build over the coming decade or
so .It should be a view of the future conveying a unifying and
personalizing sense of direction

2.Sense of Discovery:-
Strategic intent is differentiated ;it implies a competitively unique point of
view about the future .It holds out to employees the promise of exploring
new competitive territory

3. Sense of destiny:-
Strategic intent has an emotional edge to it.is a goal that
employee perceive as inherently worthwhile

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 Purpose of Strategic intent

Strategic intent helps the organization in following

way
1Focuses the organization’s attention on the essence
of winning
2 Motivates people by communicating the value of the
target
3. Leaves room for individual and team contribution
4. Sustains enthusiasm by providing new operational
definitions as circumstances change
5. Uses intent consistently to guide resource
allocation
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 Strategic intent Process

1 Set the Strategic Intent:-

Set the strategic intent with the above stated attributes
2 Set the Challenges:-
Challenges
a) Create a sense of urgency
b) Develop a competitor focus at every level through
widespread use of competitive intelligence
c) Provide employees with the skills they need to work
effectively
d) Establish clear milestones and review mechanism
3. Empowerment of the Strategic intent:-

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 Vision

“What do we want to become?”

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 What is a Vision

A strategic vision describes the

route a company intends to take in
developing and strengthening its
business. It lays out the company’s
strategic course in preparing for the
future.

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 Key Elements of a Strategic Vision
 Delineates management’s aspirations for the
business
 Provides a panoramic view of “where we are going”
 Charts a strategic path
 Isdistinctive and specific to
a particular organization
 Captures the emotions of employees
and steers them in a common
direction
 Ischallenging and a bit beyond a
company’s immediate reach
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Vision

Shared Vision –
 Creates commonality of interests
 Reduce daily monotony
 Provides opportunity & challenge

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 Vision Statement Examples
General Motors’ vision is to be the world leader in
transportation products and related services.

PepsiCo’s responsibility is to continually improve all

aspects of the world in which we operate –
environment, social, economic – creating a better
tomorrow than today.

Disney Land :- To be the happiest place on earth”

King fisher :- “To deliver a safe ,value based and

enjoyable travel experience to all our guest”

P&G :- “Be recognized as, the best consumer

products and service company in the world” 2-14
 How is Vision Created

Relies on intuition and dreaming

Top management may have brainstorming sessions
with the staff and the board
Questions to be asked in the brainstorming

 How do you want your community to be different ?

 What role do you and your organization play in
your community?
 What will success look like ?
Two major components of vision a) Core ideology
b)Envisioned future
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 How is Vision Created
Core Ideology
 Means the long lasting character of a firm as it
passes through the changing circumstances like
competition ,technology or management style
 Core ideology rests on core values and core
purposes
 Values are beliefs ,business principles and
practices that are incorporated into the way the
company operates and the behavior of the
organization personnel
 Value statements contain four and eight values
 Typical values ethics, trust ,customer focus, team
work
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 Example: Company Values

Kodak
Respect for the dignity of the individual

Uncompromising integrity

Unquestioned trust

Constant credibility

Continual
Continual improvement
improvement and
and personal
personal renewal
renewal

Open
Open celebration
celebration of
of individual
individual and
and team
team achievements
achievements
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 Example: Company Values

Home Depot
Entrepreneurial
Creating spirit Excellent
shareholder value customer service

Building strong Giving back to the

relationships community

Taking care of Respect for all

people people
Doing the right
thing
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 Example: Company Values

Du Pont

Safety Ethics

Respect for Environmenta

people l stewardship
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 Example: Company Values
Heinz
Passion . . . to be passionate about winning and about our brands, products
and people, thereby delivering superior value to our shareholders.

Risk Tolerance . . . to create a culture where entrepreneurship and prudent

risk taking are encouraged and rewarded.

Excellence . . . to be the best in quality and in everything we do.

Motivation . . . to celebrate success, recognizing and rewarding the

achievements of individuals and teams.

Innovation . . . to innovate in everything, from products to processes.

Empowerment
Empowerment .. .. .. to
to empower
empower our
our talented
talented people
people to
to take
take the
the initiative
initiative and
and to
to
do what’s right.
do what’s right.

Respect
Respect .. .. .. to
to act
act with
with integrity
integrity and
and respect
respect towards
towards all.
all.
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 How is Vision Created

Envisioned Future
 It is consistent long term goal and description of
what it will be like to achieve that goal

 Caution in writing Vision :-

 Do not write a vision statement with a group

 Bring back the vision to the group and revise it until
you have something that the members can agree
on and that the leaders share with enthusiasm
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 Communicating the Strategic Vision

 Winning support for the vision involves

 Putting “where we are going and why” in writing
 Distributing the statement organization-wide
 Having executives explain vision to the workforce
 An engaging, inspirational vision
 Challenges and motivates workforce
 Articulates a compelling case for where company is
headed
 Evokes positive support and excitement
 Arouses a committed organizational
effort to move in a common direction
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 Payoffs of a Clear Strategic Vision

 Crystallizes an organization’s long-term direction

 Reduces risk of rudderless decision-making
 Creates a committed enterprise
where organizational members
enthusiastically pursue efforts to
make the vision a reality
 Provides a beacon to keep strategy-related
actions of all managers on common path
 Helps an organization prepare for the future
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 Mission

 Mission follows vision

 A mission statement is a message designed to
be inclusive of the expectations of all stakeholders
for the company’s performance over the long run
 The executives and the board who prepare the
mission statement attempt to provide a unifying
purpose for an organization, that will lay emphasis
on business and thereby path for development

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Mission Statements

“What is our business?”

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Mission Statements

•Enduring statement of purpose

•Distinguishes one firm from another
•Declares the firm’s reason for being

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Mission Statements

Also referred to as:

•Creed statement
•Statement of purpose
•Statement of philosophy
•Statement of business principles

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 Strategic Vision vs. Mission
 A strategic vision  The mission statement of
concerns a firm’s future a firm focuses on its
business path - “where present business purpose
we are going” - “who we are and what
 Markets to be pursued we do”
 Future product/market/  Current product and
customer/technology service offerings
focus  Customer needs being
 Kind of company served
management is  Technological
trying to create and business
capabilities

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 Characteristics of a Mission Statement

 Identifiesthe boundaries of the current business

and highlights
 Present products and services
 Types of customers served
 Geographic coverage
 Conveys
 Who we are,
 What we do, and
 Why we are here

A well-conceived mission statement distinguishes a company’s

business makeup from that of other profit-seeking enterprises in
language specific enough to give the company its own identify!
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 Key Elements of a Mission Statement
 Three factors need to be identified
for completeness
 Customer needs being met
What is being satisfied
 Customer groups or markets being served
Who is being satisfied
 What the organization does (in terms of business
approaches, technologies used, and activities performed)
to satisfy the target needs of the target customer groups
How customer needs are satisfied

A company’s mission is not to make a profit! Its true

mission is its answer to “What will we do to make a profit?”
Making is profit is an objective or intended outcome!

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Mission Statement Examples

Ford Motors :-
“ To achieve our objectiveness in an environment of
fairness ,honesty and courtesy towards our clients
,employees ,vendors and society at large”

Infosys :- “ To achiever our objectiveness in an

environment of fairness ,honesty and courtesy towards
our clients ,employees ,vendors and society at large”

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Mission Statement Examples

PepsiCo
We aspire to make PepsiCo the world’s premier consumer products
company, focused on convenient foods and beverages. We seek
to produce healthy financial rewards for investors as we provide
opportunities for growth and enrichment to our employees, our
business partners and the communities in which we operate. And
in everything we do, we strive to act with honesty, openness,
fairness and integrity.

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Mission Statement Examples

Dell’s
Dell’s mission is to be the most successful computer company in the
world at delivering the best customer experience in markets we
serve. In doing so, Dell will meet consumer expectations of
highest quality; leading technology; competitive pricing; individual
and company accountability; best-in-class service and support;
flexible customization capability; superior corporate citizenship;
financial stability.

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Mission Statement Examples

Proctor & Gamble

Proctor & Gamble will provide branded products and services of superior
quality and value that improve the lives of the world’s consumers. As a
result, consumers will reward us with industry leadership in sales, profit,
and value creation, allowing our people, our shareholders, and the
communities in which we live and work to prosper.

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Importance of Mission

Benefits from a strong mission

Unanimity of Purpose

Resource Allocation
Mission
Organizational Climate

Focal Point for Work

Structure

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Effective Missions

Broad
Broadin
inscope
scope

Generate
Generatestrategic
strategic
alternatives
alternatives

Not
Notoverly
overlyspecific
specific

Reconciles
Reconcilesinterests
interestsamong
among
diverse
diversestakeholders
stakeholders

Finely
Finelybalanced
balancedbetween
between
specificity
specificity&&generality
generality

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Effective Missions

Arouse
Arousepositive
positivefeelings
feelings&&
emotions
emotions

Motivate
Motivatereaders
readersto
toaction
action

Generate
Generatefavorable
favorable
impression
impressionofofthe
thefirm
firm

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Effective Missions

Reflect
Reflectfuture
futuregrowth
growth

Provide
Providecriteria
criteriafor
forstrategy
strategy
selection
selection

Basis
Basisfor
forgenerating
generating&&
evaluating
evaluatingstrategic
strategicoptions
options

Are
Aredynamic
dynamicin
innature
nature

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 How is mission Statement Created

 Almost like the one followed for visonering

 Top executives take the initiative he or she
assisted by team of managers
 Together all brainstorm ,come out with a draft and
after series of revisions ,final statement is prepared
and that becomes the mission statement of the
organisation

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 Components of mission statment

 3 components
1. product or service
2. Specific customer
3. Principal technology for production of products or
delivery
 3 dimensions
1. Who is being satisfied
2. What is being satisfied
3. How they are being satisfied

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 Elements of Mission Statement
 A purpose:-

A strategy and strategic Scope:-

 A strategy may produce something, strategic purpose is
the boundary

 Standards and behaviors:- Translation of missions into

actions need to have policies and standards of behavior

 Values :- beliefs of managers and employees who work in

the company

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 Objectives

 Vision and mission statements need to be followed

by objectives
 Mission statements seek to make a vision more
specific and objectives are attempts to make
mission statements more concrete
 Objectives are used to operational the mission
statement
 Objectives act as a yardstick for measuring
company’s performance
 Objectives are futuristic that a company attempts
to realize
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 Characteristics of objectives

 Objectives should be understandable

 Objectives should be concrete and specific
 Objectives should be measurable and controllable
 Objectives should be challenging
 Different objectives should correlate with each
other
 Objectives should be set within constraints

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 Issues in objective setting

 Specificity
 Multiplicity
 Periodicity
 Verifiability
 Reality
 Quality

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 Kinds of objectives

 Economic and social objectives

 Primary and Secondary objectives
 Short term and long term objectives

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 Approaches to Determine Objectives

 Adoption of either top-down approach or bottom

up approach
 Top down approach is beneficial in the following
ways :-
i) cohesion:- It creates cohesion among the
strategies and objectives of different divisions of
the organization
ii) Unify internal efforts :- It helps to unify internal
efforts to move the organization along with the
strategic path

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 Areas of Setting Objectives
 Duckers says objectives need to be set in eight
prime areas they are
 market standing,
 innovation,
 productivity
 physical and financial resources
 Profitability
 Manager performance
 Worker performance
 Attitude
 Public responsibility
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 Factors Affecting Strategic Objective
Setting
 Enhancing shareholders value
 Organizational Availability
 Value system of Top Management
 Experience of Past Objectives

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