Prepared by Altaf Surya Almas Syed Arafat Thote Faizan Khan

By

strategy intent we refer to the purposes the organisation strives for. Here we take the position that strategic intent lays down the framework within which firms would operate, adopt a pre determine direction, and attempt to achieve their goals. But the term strategic intent has a definite meaning in strategic management.

CK Prahald and Hamel coined the term strategic intent to indicate an obsession of an organization, some times having ambitions that may even be out of proportion to their resources and capabilities. They explain the term strategic intent like this. On the one hand, strategic intent envisions a desired leadership position and establishes the criterion the organization will use to chart its progress. At the same time, strategic intent is more than simply unfettered ambition.

 The

concept also encompasses an active management process that includes focusing the organisation attention on the essence of winning, motivating people by communicating the value of the target, leaving room for individual and team contribution, sustaining enthusiasm by providing new operational definition as circumtances change and using intent consistently to guide resource allocation.

Indian business groups and companies ranking high on strategic intent

VISION 2007 To seize the opportunities of tomorrow and create a future that will make it an economic value added positive company To continue to improve the quality of life of our employees and the communities we serve Revitalize the core business for a sustainable future Venture into new businesses that will own a share of our future Uphold the spirit and values of Tatas towards nation building.

MISSION STATEMENT Consistent with the vision and values of the founder Jamshetji Tata, Tata Steel strives to strengthen Indias industrial base through the effective utilization of staff and materials. The means envisaged to achieve this are high technology and productivity, consistent with modern management practices. Tata Steel recognizes that while honesty and integrity are the essential ingredients of a strong and stable enterprise, profitability provides the main spark for economic activity. Overall, the Company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear and thereby reaffirms its faith in democratic values.

STRATEGIC GOALS Move from commodities to brands EVA positive core business Continue to be lowest cost producer of steel Value creating partnerships with customers and suppliers Enthused and happy employees Sustainable growth

STRATEGY Manage knowledge Outsource strategically Encourage innovation and allow the freedom to fail Excel at TBEM: The Tata Business Excellence Model Unleash peoples potential and create leaders who will build the future Invest in attractive new businesses Ensure safety and environmental sustainability Divest, merge and acquire

Stretch is a misfit between resources and aspiration. Leverages refers to concentrating, accumulating, complementing, conserving, and recovering resources in such a manner that a meagre resource base can be stretched to meet the aspirations that an organisation dares to have. The idea of stretch is diametrically opposite to the idea of fit that means positioning the firm by matching its organisational resources to its environment. Under fit, the strategic intent would seem to be more realistic; under stretch and leverage it could be idealistic.

Strategic intent of Indian Oil

 UNDERSTANDING

VISION A vision is more dreamt of than it is articulated. This is the reason why it is difficult to say what vision an orgaisation has. DEFINING VISION Kotter defines it as a description of something (an organisation, corporate culture, a business, a technology, an activity) In the future.

Parikh and Neubauer says: Good visions are inspiring and exhilarating Visions represent a discontinuity , a step function and a jump ahead so that the company knows what it is to be Good visions help in the creation of a common identity and a shared sense of purpose. Good visions are competitive , original and unique. They make sense in the in the marketplace as they are practical. Good visions foster risk taking and experimentation Good vision foster long term thinking Good visions represent integrity , they are truly genuine and can be used for the benefit of people

 According

to Collings and Porras, a wellconceived vision consistes of two major components: 1. Core Ideology & 2. Envisioned Future

 Kumaramangalam

Birla said This is the first step in achieving the groups vision for the next millennium. We hope to grow each company in revenues and earnings through a focus leadership in the areas they operate in.

 UNDERSTANDING

MISSION Mission is a statement which defines the role that an organisations plays in a society.
DEFINING

MISSION Thompson (1997) defines as essential purpose of the organisation, concerning particularly why it is in existence, the nature of the business(es) it is in, and the customers it seeks to serve and satisfy.

 Most

organisations derive their mission statements from a particular set of tasks they are called upon to perform in the light of their individual, national or global priorities. Mission statement could be formulated on the basis of the vision that an entrepreneur decides on in the initial stages of an organisations growth.

Eicher
HCL Marico

Consutancy

Industries Ranbaxy Laboratories Unit Trust of India

A Mission Statement define the basic reason for the existence of that organization Features 1.It Should be Feasible A mission should always aim at high but it should not be an impossible statement. 2.It Should be precise A mission Statement Should not be narrow as to restrict the organization's activities & nor it be too broad to make itself meaning less. 3. It should be clear A mission should be clear enough to lead action. 4.It should be motivating A mission statement should be motivating for members of the organization and of society

5.It Should be distinctive A mission statement which is indiscriminate is likely to have little impact 6.It should indicate major Component of Strategy t be adopted 7.It should indicate how objectives are to be accomplished

Eicher
HCL Marico

Consutancy

Industries Ranbaxy Laboratories Unit Trust of India

 Understanding

business vital to defining it and answering the question What is our business? What will it be? What should it be?

Understanding the Business of Timekeeping

Society

Business organization

Other organization

Society
Product Service

Consumer goods

Industrial goods

Consumer durable

Consumer non-durable

Non-specialty

Specialty goods

Chronometers

Other products

Wristwatches

Other types of watches

Customer Functions

Customer Groups

Alternative Technologies

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2.

3.

Customer groups are individual customer and industrial users. Customer functions are of finding time, recording time, using watches as a fashionable accessory and as a gift item. Alternative technologies are of the mechanical, quartz digital and quartz analog types.

Goals and objectives setting at canara bank.

A single business firm is active in one area so its business definition simple a large conglomerate, operating in several businesses, would have a separate definition for each of its business at corporate level the business definition will concern its self with the wider meaning of customer groups, customer function & alternative technique.

Defining business at Modi Xerox

 Objectives

define the organization relationship with its environment: Objectives help an organization purse its vision and mission: Objectives provide the basis for strategic decision making: Objectives provide the standard for performance appraisal:-

 Objectives

should be understandable: Objective a should be concrete and specific: Objectives should be related to time frame: Objectives should be measurable and controllable; objectives should be challenging: Different objectives should correlate with each other Objectives should be set within constraints

Specificity
Multiplicity Periodicity Verifiability Reality Quality

Profits (return on investment , return on share holders capital, net profits as a percentage of sales) Marketing (increase in sales volume, market development for existing product, new product development, reduction in marketing cost , improving customer service) Growth (output, sales turnover, welfare and development) Employees ( industrial relation, welfare and development) Social responsibility(community service, rural development, auxilary industry development, family welfare).

Emerging measure for objectives setting and performance measurement

The objectives are formulated on the basis of two factor that are as follows. 1. The forces in the environment 2. Realities of enterprises resources and internal power relationships 3. The value system of the top executive 4. Awareness by management

Objectives setting at Cadbury India

Critical success factors at ELGI

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2.

3.

4.

A set of CSFs results from asking the question : what do we need to do in order to be successful in particular context? CSFs are based on particular logic, heuristic , or a rule of thumb rather than an elaborate procedure or an esoteric theoretical model. CSFs are the results of long years of managerial experience , which leads to the development of intuition , judgment and hunch that can be used in strategic decision making. An analysis of what relevant CSFs operate in a particular context could be based on the managers statement , expert opinions and organization success stories.

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2.

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CSFs could also be generated internally through creative techniques such as brain storming. The use of CSFs in objectives setting and strategic choice distinguishes the successful organization from the unsuccessful organization ones. CSFs are used to pinpoint the key result areas , determining objectives in those areas , and devising measures of performance for judging the objectives achieves capability of any organization.

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