ESTABLISHING STRATEGIC INTENT

VISION,MISSION,OBJECTIVES AND GOAL

LEVELS OF STRATEGIC INTENT

VISION

MISSION

OBJECTIVES

PLANS

POLICIES

GOALS

STRATEGIES AND TACTICS

“A strategist’s job is to see the company not as it is …but as it can become “

John W Teets

“A business is not defined by its name, status, or incorporation.

It is defined by the business mission. Only a clear definition of the mission

and purpose of the organization makes possible clear and realistic business

Objectives”

Peter Drucker

VISION

VISION IS A DREAM

VISION IS A DREAM WITH A DEADLINE

IT IS A PICTURE OF FUTURE THAT PULLS US INTO THE FUTURE

A VISION STATEMENT IS AN ATTEMPT TO CAPTURE THAT DREAM IN WORDS

WHEN ASKED, WHAT WOULD BE WORSE THAN BEING BLIND, HELEN KELLER REPLIED :

“IT WOULD BE DEFINITELY WORSE TO HAVE 20/20 EYESIGHT AND NO VISION, THAN TO BE BLIND, BUT HAVE THAT VISION.”

VISION

A VISION STATEMENT TELLS US WHERE WE ARE GOING.

VISION STATEMENT, TO BE WORTH ANYTHING, HAVE TO DIFFERENTIATE OUR COMPANY FROM THE COMPETITION.

OUR VISION MUST CONNECT WITH THE HEARTS AND DREAMS OF OUR PEOPLE.

VISION

FROM AN ORGANIZATIONAL PERSPECTIVE, VISION HAS TO HAVE FIVE COMPONENTS :

A SENSE OF WORTHINESS.

AN ABILITY TO INSPIRE.

AN INVITATION TO SHARE.

CLEAR AND UNDERSTANDABLE DETAIL.

ACHIEVABILITY.

CORE IDEOLOGIES IN THE VISIONARY COMPANIES

IBM

Cont ...

GIVE FULL CONSIDERATION TO THE INDIVIDUAL EMPLOYEE.

SPEND A LOT OF TIME MAKING CUSTOMERS HAPPY.

GO THE LAST MILE TO DO THINGS RIGHT, SEEK SUPERIORITY IN ALL WE UNDERTAKE.

CORE IDEOLOGIES IN THE VISIONARY COMPANIES

JOHNSON & JOHNSON

Cont ...

THE COMPANY EXISTS “TO ALLEVIATE PAIN AND DECEASE.”

“WE HAVE A HIERARCHY OF RESPONSIBILITIES; CUSTOMERS FIRST, EMPLOYEES SECOND, SOCIETY AT LARGE, THIRD AND SHAREHOLDERS FOURTH.” INDIVIDUAL OPPORTUNITY AND

REWARD BASED ON MERIT.

DECENTRALIZATION = CREATIVITY + PRODUCTIVITY.

CORE IDEOLOGIES IN THE VISIONARY COMPANIES

BOEING

Cont ...

BEING ON THE LEADING EDGE OF AERONAUTICS; BEING PIONEERS.

TAKING HUGE CHALLENGES AND RISKS.

PRODUCT SAFETY AND QUALITY.

INTEGRITY AND ETHICAL BUSINESS.

TO “EAT, BREATHE AND SLEEP THE WORLD OF AERONAUTICS.”

Vision & mission

Vision is what the firm wants to be in future. such a view is often made explicit in a VISION statement of the company. a vision statement gives aspiration and motivation besides guiding the formulation of strategy.

Hamel and Prahalad , term it as strategic intent. Examples:

• To put a man on the moon by the end of the decade– Apollo program.

• Our vision is to dominate the global food service industry– McDonald.

• Project infinity – Coca Cola

Mission

• Mission statement contains the ultimate purpose of the firm. It also is the vision of the founders.

• The corporate mission is an expression of the growth ambition of the firm.

• It is the firms future visualized.

MISSION

A CLEAR AND COMPELLING STATEMENT THAT SERVES TO UNIFY EFFORTS OF AN ORGANISATION.

IT MUST STRETCH AND CHALLENGE THE ORGANIZATION AND YET BE ACHIEVABLE.

IT MUST TRANSLATE ABSTRACTNESS OF PHILOSOPHY INTO TANGIBLE, ENERGISING AND FOCUSED GOAL THAT DRAWS THE ORGANISATION FORWARD.

MISSION

MISSION STATEMENT MUST ANSWER FOLLOWING QUESTIONS

WHAT IS OUR REASON FOR BEING?

WHAT IS OUR BASIS PURPOSE?

WHAT BUSINESS ARE WE IN?

WHAT IS UNIQUE OR DISTINCTIVE ABOUTOUR ORGANISATION?

WHAT DO WE STAND FOR?

MISSION ELEMENTS

TRUSTWORTHY.

QUALITY.

FAIR DEALINGS.

CONTRIBUTION TO THE SOCIETY.

Components of mission

Customers

Product &service

Market

Technology

Concern for survival, growth, profit

Philosophy

Self concept

Contd..

Concern for public image

Concern for employees

Mission statement

Pepsi Co’s mission is to increase the value of our share holders investment. we do this through sales growth, cost controls and wisest investment resources. we believe our commercial success depends upon offering quality and value to our consumers &customers ;providing product that are safe, wholesome economically efficient ,adhering to the highest standards of integrity

Mission statement

Dell computer’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 customer expectations of highest quality; leading technology;comptt pricing; individual and company accountability, best in class service and support; flexible customization capability; superior corporate citizenship; financial stability

Role of mission in strategy formulation

Helps in deciding strategic actions

Helps in clarifying aspirations

Integrating with environment

Conveys clear message to outside world

J.R.D. TATA’S MISSION STATEMENT

STRIVE FOR PERFECTION AND YOU WILL REACH EXCELLENCE.

NO SUCCESS OR ACHIEVEMENT IN MATERIAL TERMS IS WORTHWHILE, UNLESS IT SERVES THE NEEDS OR INTEREST OF THE COUNTRY AND ITS PEOPLE AND IS ACHIEVED BY FAIR AND HONEST MEANS.

GOOD HUMAN RELATIONS NOT ONLY BRING GREAT PERSONAL REWARDS, BUT ARE ESSENTIAL TO THE SUCCESS OF ANY ORGANISATION.

How does mission helps the firm

Lends directionGives focusObjectives , targets and programs are formulated based on mission.Helps people at various levels in the corporation understand in what direction they should move.Guiding the action at all levels.Helps prevent people falling into an activity trap.

A few mission statements

• The mission of our company, is to make cleanliness commonplace, to lesson work for women, to foster health, and to contribute to personal attractiveness that life may be more enjoyable for the people who use our products.--- Unilever

• To preserve and improve human life---Merck• To help business corporations and governments to

more successful.—McKinsey & Co.• To become a major player in the global chemical

business and simultaneously grow in other growth industries like infrastructure ---RIL

• To become a $ 1 billion research based global pharmaceutical company --- Ranbaxy

Mission change only

In change in core business

Crisis situation

Change in demand from coalition group

Change in normal life cycle of the enterprise

Values & beliefs

• Organizational values are a major constituent of mission. It is values that hold the mission in tact. It is the shared values that holds a firm together. Values proclaim the qualities it will cherish and what it will give to and expect from its people and society.

• The firms beliefs can also be found in the mission statement.

Establish organizational direction

Establishing an organizational direction for the company involves determining two indicators:• Organizational mission – the reason why the

organization exists

• Objectives – measurable targets to track the growth of the business

OBJECTIVES

There are 2 types of objectives long run and the short run

Long run objectives specify the results that are desired in pursuing the organization's mission and normally extend beyond the current financial year of the organization

Guidelines in formulating the Objectives

Involvement of all the employees responsible for carrying out

Reachable

Realistic

Contemporary & innovative

Not too many objectives

Ranked according to the priority

Contd..

balanced

Importance of the objectives

Define the organization

Co-ordinates decision making

Formulating strategies

Standards to assessing org. performance

Tangibles the mission

Reflect the change in the env.

Key objective areas

Market standingInnovationProductivityResource levelsProfitabilityManager performance and developmentWorker performance and attitudeSocial responsibility

Types of objectives

Profitability

Growth

Market share

Social responsibility

Employee welfare

Product Quality

Service

R&D

Diversification

Efficiency

Financial stability

Resource conservation

Mgt & labor development

How long term objectives are formulated

Environment analysisDeveloping and formulating vision and missionDeveloping organisational objectives a) formulating general obj.

• B) obj in written form• Formulating specific obj• Ranking the specific obj

Formulation of objectives (W.F.Glueck)

ForcesIn environment

Values of top mgmt

Past History of firm

InternalResources and

power

Set of future obj

To quote Akio Marita, Sony's visionary leader "our plans is to lead the public with new products, rather than ask them what kind of products they want; hence we create a products and then create a market by educating and communicating to the public about the product".

The "Walkman", music system is the best example of the mission of Sony, as seen of reality in action.

Stated below are the Vision statements of some highly focused and successful organisations-

SIEMENS: Where technology touches livesDU PONT: Better things for better living through ChemistryHYUNDAI: Building a better world through innovative technologyNOKIA: Connecting peopleXEROX: The document companyIBM: Solutions for a small planetPHILIPS: Let's make things betterBPL: Believe in the best

BUSINESS DEFINITION

A business definition is a clear cut statement of the business ,the firm is engaged in or is planning to pursue. It is an elaboration of the business arena it will play in . It prescribes the boundaries of the firm’s business

WHAT PURPOSE DOES A BUSINESS DEFINATION SERVE

CLARIFIES WHERE TO LOOK FOR OPPORTUNITIES

PROVIDES THE BLUE PRINT FOR PRODUCT MARKET STRATEGY

SOME BUSINESS DEFINATION

INTEL- “ We are in the business of computing technology and to consistently develop the artifice/ building blocks of computing technology for the entire computer industry of the world is our business”

Contd..

FORD- “we are in the business of automotive and auto related products and services”

ATTRIBUTES OF GOOD BUSINESS DEFINATION

Related to basic human need

Functions performed by the product

Basic benefits

Go beyond immediate product

Wide enough to embrace new opportunities

Give vision of latent comptt