Strategic intent refers to the long-term goals and vision of an organization. It includes defining the organization's vision, mission, goals and objectives in a hierarchy. The vision provides motivation and direction, while the mission conveys the organization's fundamental purpose and scope of operations. An effective mission statement embodies the business philosophy, implies the desired image, and indicates the primary customer needs and product/service areas. Together, the vision, mission and values statements form the strategic focus and context that guide an organization and lead to its objectives.

1. Strategic Management
Unit I : Strategic Intent

2. Strategic Intent
• strategic intent is defined as a compelling statement about where an
organization is going and conveys a sense of what that organization
wants to achieve in the long term.
• Strategic Intent has a hierarchy: Vision, Mission, Goals and Objectives
• It refers to purpose for what organization strives for.
• Organization must define “what they want to do” , “why they want to
do”, “why they want to do” and underlines the end result and in
management terms it is known as strategic intent
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3. What is a company ‘s Mission?
•The fundamental purpose that sets a firm apart
from other firms of its type and identifies the
scope of its operations in product and market
terms
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4. Characteristics of a Mission Statement
•Embodies the business philosophy of the firm’s
strategic decision makers
• Implies image firm seeks to project
• Reflects firm’s self-concept
• Indicates
• firm’s principal product or service areas
• primary customer needs the firm will attempt to
satisfy
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5. Questions Addressed By a Mission Statement
• Why is this firm in business?
• What are our economic goals?
• What is our operating philosophy in terms of quality, company image,
and self-concept?
• What are our core competencies and competitive advantages?
• What customers do and can we serve?
• How do we view our responsibilities to stockholders, employees,
communities, environment, social issues, and competitors?
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6. Components of a Mission Statement
• Specifies basic type of product or service to be offered
• Identifies primary market or customer groups to be served
• Specifies the technology to be used in production or delivery
• Reflects the firm’s fundamental concern for survival through growth
and profitability
• Reflects the firm’s managerial philosophy
• Identifies the public image the firm seeks
• Specifies the self-concept those affiliated with the firm should have
of it
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7. Practical Examples of Mission Statement
Components
• Customer-market
• To anticipate and meet market needs of farmers, ranchers, and rural
communities within North America (CENEX)
• Product-service
• AMAX’s principal products are molybdenum, coal, iron ore, copper, lead, zinc,
petroleum and natural gas,. potash phosphates, nickel, tungsten, silver, gold,
and magnesium
• Geographic domain
• We are dedicated to total success of Corning Glass Works as a worldwide
competitor
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8. Practical Examples of Mission Statement
Components
• Technology
• The common technology in these areas relates to discrete particle coatings
(NASHUA)
• Concern for Survival
• In this respect, the company will conduct its operations prudently, and will
provide the profits and growth which will assure Hoover’s ultimate success
(Hoover Universal)
• Philosophy
• We are committed to improve health care throughout the world (Baxter
Travenol)
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9. Practical Examples of Mission Statement
Components
• Self-concept
• Hoover Universal is a diversified, multi-industry
corporation with strong manufacturing capabilities,
entrepreneurial policies, and individual business unit
autonomy
• Concern for Public Image
• We are responsible to the communities in which we live
and work and to the world community as well (Johnson &
Johnson)
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10. Newest Trends in Mission Components
• Sensitivity to customer wants
• “The customer is our top priority!”
• Emphasis on extensive product safety programs
• Concern for quality
• “Quality is job one!”
• Emphasis on quality in manufacturing
• New philosophy – quality is the norm
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11. Newest Trends in Mission Components
• Statements of company vision
• Developed to express the aspirations of the executive
leadership
• Presents the firm’s strategic intent
• “A computer on every desk, and in every home, running on
Microsoft software”
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12. Responsibilities of the Board of Directors
• To establish and update the company mission
• To elect the company’s top officers, the foremost of whom is the CEO
• To establish the compensation levels of the top officers, including their salaries and
bonuses
• To determine the amount and timing of the dividends paid to stockholders
• To set broad company policy on such matters as labor-management relations, product
or service lines of business, and employee benefit packages
• To set company objectives and to authorize managers to implement the long-term
strategies that the top officers and the board have found agreeable
• To mandate company compliance with legal and ethical dictates
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13. Inputs to Development of
Mission Statement
Inside Stakeholders
Executive officers
Board of directors
Stockholders
Employees
Outside Stakeholders
Customers
Suppliers
Creditors
Governments
Unions
Competitors
General
public
Company
Mission
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14. Strategic Management
Unit I: Vision, Mission and Values

15. Vision, Mission and Values
• The first task of Strategic Management is formulating the
organization’s vision, mission, and value statement.
• These statements are primarily based on internal processes within
the organization.
• They have the greatest impact on the identity and the future of the
organization and reflect the strategic intent of the organization.
• VISION is what keeps the organization moving forward.
• Vision is the motivator in an organization.
• It needs to be meaningful with a long term perspective so that it can
motivate people even when the organization is facing discouraging
odds.
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16. Vision, Mission and Values
• MISSION is the founders intentions at the outset of the organization – what
they wanted to achieve.
• In the dynamic environment of today, it must be re-examined and
refreshed periodically.
• VALUES manifest in what the organization does as a group and how it
operates.
• An explicit depiction of values is a guide to ways of choosing among
competing priorities and about how it work together.
• Vision, values and mission are the three components of focus and context
of the organization. They form a hierarchy.
• The vision of the organization leads to its Mission and its values.
• The Mission in turn leads to the objectives of the firm.
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17. Vision Statement – what is a vision statement
about?
• The process of strategic planning, visioning comes first.
• A vision is a guide to implementing strategy.
• Vision are about feelings, beliefs, emotions, and pictures.
• vision must be encompassed by your beliefs.
• beliefs must meet your organizational goals as well as community goals.
• beliefs are a statement of your values.
• beliefs are a public/visible declaration of your expected outcomes.
• beliefs must be precise and practical.
• beliefs will guide the actions of all involved.
• beliefs reflect the knowledge, philosophy, and actions of all.
• beliefs are a key component of strategic planning.
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18. What does a Vision do?
• The long term benefits are substantial, because visioning:
• Breaks you out of boundary thinking.
• Identifies direction and purpose.
• Alerts stakeholders to needed change.
• Promotes interest and commitment.
• Promotes laser-like focus.
• Encourage openness to unique and creative solutions.
• Encourages and builds confidence.
• Builds loyalty through involvement (ownership).
• Results in efficiency and productivity.
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19. Vision Statement
• The vision statement identifies activities the organization intends to
pursue, sets forth long term direction and provides a big perspective
of:
• Who are we?
• What are we trying to do?
• How do we want to go about it?
• Where are we headed?
• A clear vision of the desired future is an essential component for the
high performance of the organization.
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20. Examples
• When he was the CEO of Britannia, he decided to come up with a one-line
vision for the company. He came up with the following vision statement:
• ‘Every third Indian must be a Britannia consumer by 2004’
• It is this vision of the organization that has made Britannia a leading
manufacturer of bakery and dairy products.
• Jack Welch redefined GE’s approach to its business when he announced to
all GE managers, “To me, quality and excellence means being better than
the best…. If we aren’t better than the best, we should ask ourselves ‘What
will it take?’, then quantify the energy and resources to get there.”
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