102. Strategic Intent

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StrategicManagement



Hierarchy of Strategic Intent Hierarchy of Strategic Intent

V ision

Mission

V alues & Objectives

Goals

Plans

Most Integrative

Most Specific

Fewest in Number

Greatest in Number



A Company·s Vision«A Company·s Vision«

A Strategic vision is a road map showing the route a

company intends to take in developing and strengthening its

business. It paints a picture of a company·s destination and

provides a rationale for going there«



Vision Statements«Vision Statements«

We will become number one or number two in every market we serve, and

revolutionize this company to have the speed and agility of a small

enterprise.

To bring innovation and inspiration to every athlete in the world.

The vision of Ford is ´to become the world·s leading consumer company

for automotive products and services.µ

Nokia's vision is a world where everyone can be connected.



A Company·s Mission«A Company·s Mission«

An enduring statement of purpose that distinguishes one

business from other similar firms. It defines scope of

operations, implies the image the firms seek to project and reflects the values and priorities of the firm. It provides a

public announcement to insiders and outsiders about what

the firm stands for, what makes firm different and more

effective competitor«



Mission Statement«Mission Statement«

Why is this firm in Business?

What are our economic goals?

What is our Philosophy?

What are our Competencies?

What customers can we serve? What are our responsibilities to Stakeholders?



Components of a Mission Statement«Components of a Mission Statement«

Customers

Product or Services

Markets

Technology

Concern for Survival, Growth, Profits«

Philosophy

Self ² Concept

Concern for public image

Concern for Employees



Mission Statements«Mission Statements«

To stimulate, continue and accelerate efforts to develop and maximize the

contribution of the energy sector to the economy of the country.

To carry on the legacy of innovative thinking, whether to develop products that help

athletes of every level of ability reach their potential, or to create business

opportunities that set Nike apart from the competition and provide value for our

shareholders.

To build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services.



Business Definition«Business Definition«

A Business Definition is a clear statement of the business

the firm is engaged in or is planning to enter.

We are in Beauty ² Enriching Business

- Helen & Curtis

We are in transportation Business

- TELCO

We are in business of Computing Technology - Intel



Values

In high-performance organizations, values respect the interests of key stakeholders.

The values of a company should state:

How managers and employees should conduct themselves

How they should do business

What kind of organization they need to build to help achieve the company·s

mission

Organizational culture

The set of values, norms, and standards that control how employees work to

achieve an organization·s mission and goals

Often seen as an important source of competitive advantage



Values at Nucor

´Management is obligated to manage Nucor in such a way that employees

will have the opportunity to earn according to their productivity.µ

Émployees should be able to feel confident that if they do their jobs

properly, they will have a job tomorrow.µ

Émployees have the right to be treated fairly and must believe that they

will be.µ

Émployees must have an avenue of appeal when they believe they are being

treated unfairly.µ

At Nucor, values emphasizing pay for performance, job security, and fair treatment for employees help to create an atmosphere that leads to high

employee productivity.



Objectives & Goals Objectives & Goals

Objectives are an organization·s performance targets ²

the results and outcomes it wants to achieve. They function as yardsticks for tracking an organization·s

performance and progress«



Roles of Objectives Roles of Objectives

Legitimacy

Direction

Coordination

B

enchmark for success Motivation



Characteristics of Objectives Characteristics of Objectives

Objectives form a hierarchy

Objectives form a network

Multiplicity of Objectives

Long and Short ² range Objectives



Strategic & Financial Objectives Strategic & Financial Objectives

Grow annual revenues by 5 ² 6% annually, increase

operating profit margins from 11 ² 16% percent within 5

years; trim the company·s 1200 food, household, and

personal care products down to 400 core brands; focus sales and marketing efforts on those brands with potential

to become respected, market-leading global brands; and

streamline the company·s supply chain«- Unilever

102. Strategic Intent

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