Strategic intent
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The document discusses various strategic planning concepts including strategic intent, vision, mission, business definition, goals, objectives, and critical success factors. Strategic intent refers to the long-term purpose of an organization. Vision describes what the organization would ultimately like to become. Mission answers questions about the organization's purpose and reason for existence. Business definition outlines the customer groups, functions, and technologies that define a company. Goals and objectives help operationalize the vision and mission, with objectives being more specific and measurable. Critical success factors are the key elements necessary for success in a given industry.
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Strategic intent
- 2. 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
- 3. 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
- 4. 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.”
- 5. 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
- 7. 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
- 8. 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
- 9. Characteristics of Mission statement Shikha Sota Feasible Precise Clear Motivating Distinctive Indicate objectives to be accomplished
- 10. Business Definition Shikha Sota Three dimensions of business (Derek Abell) Customer functions Alternative technologies Customer groups
- 12. Goals Shikha Sota What an oaganisation hopes to achieve Consists of various financial & non- financial issues Generalised qualitative
- 13. Objectives Shikha Sota Ends that state specifically how goals should be achieved Objectives makes goals operational Concrete Generally quantitative Sometimes used interchangeably with goals
- 14. 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
- 15. 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
- 16. 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
- 17. Issues in objective setting Shikha Sota Specificity Multiplicity Periodicity Verifiability Reality Quality
- 18. 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
- 19. 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
- 20. 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
Editor's Notes
- 1.Time Frame Objectives are timeless, enduring, and unending; goals are tempo-ral, time-phased, and intended to be superceded by subsequent goals. Because objec-tives relate to the ongoing activities of an organization, their achievement tends to be open-ended in the sense of not being bounded by time. For example, the survival objective of a business organization is never completely attained since failure is always a future possibility. 2. Specificity Objectives are stated in broad, general terms, dealing with matters of image, style and self-perception. These are aspirations to be worked in the future. Goals are much more specific, stated in terms of a particular result that will be accomplished by a specific date. In the above example, survival as an objective is not very specific because it leads to different interpretation of the state of survival. On the other hand, goals can be expressed in terms of say achievement of 10 per cent growth in the net sales in the next year. This is more specific and time bound. 3. Focus Objectives are usually stated in terms of some relevant environment which is external to the organization; goals are more internally focused and carry important implications about how resources of the organization are utilized or will be utilized in future. Therefore, objectives are more generalized statements like main-taining market leadership, striving continuously for technological superiority, etc. A goal may imply a resource commitment requiring the organization to use those resources in order to achieve the desired outcomes. 4. Measurement Both objectives and goals can be stated in terms, which are quanti-tatively measured, but the character of measurement is different. Generally quantita-tive objectives are set in relative terms. For example, Reliance Industries has put its objectives like this: to acquire top position among the Indian companies. This objec-tive may not be achieved in anyone year, but it is timeless and externally focused, providing a continuing challenge for the company. Quantitative goals are expressed in absolute terms. For example, a company has stated its goal to achieve 10 per cent growth in its sales in the next year. The achievement of this goal can be measured irrespective of environmental conditions and competitors’ actions.