1. STRATEGIC MANGEMENT

2. What is Strategic Intent?
Vision + Intent
Where we want How we intend
to get to to get there
2

3. Strategic Intent
• Strategic Intent: A long-term goal that is
ambitious, builds upon and stretches firm’s core
competencies, and draws from all levels of the
organization.

4. The Pyramid of Purpose
The language of Strategic Intent
Strategic Intent
Vision Mission
Priorities Aims Objectives
Decision Criteria Strategic Initiatives Strategies
4

5. Influences on Strategic Intent
Stakeholder Groups Inspired guesses Context
of the future History & Culture
Ownership Structure
Corporate Values
Strategic Intent
Goals Vision
Survival
Profit Unique for this
Growth enterprise
Shareholder Value
The Strategy Formulation Process
Leadership Strategic Assessment
Strategic Choice
(c) Macmillan & Tampoe 2001 5

6. Strategic Intent of Reliance Industries :
Strategic Intent of Reliance Industries Dhirubhai Ambani,
promoter of RIL, started a business of exporting rayon, cashew
nuts, and spices and importing nylon in 1959 with a meager
capital of Rs. 15,000/-.
 This business grew and he established a synthetic fabric mill
in 1966. This mill was upgraded continuously and by 1975, it
was rated as one of the best mills in India by a team of World
Bank.
Afterward, it went for backward integration at successive
levels and, today, it has become a petrochemical company and
has occupied number one position in Indian Provate sector.

7. Strategic Intent of Reliance Industries :
Strategic Intent of Reliance Industries In 1970s, Dhirubhai Ambani told one of
his close colleagues, “do you know who these Tatas and Birlas are? We have
to get past them one day. I have inherent desire to become number one
industrialist of the country.
This intent of Dhirubhai became the strategic intent of RIL.
RIL pursued its growth strategy relentlessly. RIL always believed, “If you want
to become world-class company, you must have world-class technology and
world-class people”.
For world-class technology, RIL acquired best-in-class technology. For people
mobilization, RIL adopted the approach, “If you are a big fish, small pond will
not suit you. Come and join the best-in-class company”. The result is: RIL has
a very high percentage of Indian repatriate employees. For mobilizing
financial resources, RIL relied on public participation.

8. Major Components of the
Strategic Plan / Down to Action
Strategic Plan
Action Plans
Mission Why we exist
Evaluate Progress
Vision What we want to be
Goals What we must achieve to be successful
Objectives O1 Specific outcomes expressed in
O2
measurable terms (NOT activities)
Initiatives Planned Actions to
AI1 AI2 AI3 Achieve Objectives
Measures Indicators and
M1 M2 M3 Monitors of success
Targets T1 T1 T1 Desired level of performance
and timelines
Matt H. Evans,
matt@exinfm.com

9. Strategic Intent of Indian Oil Corporation :
Strategic Intent of Indian Oil Corporation IOC is the largest
Indian company engaged in the business of crude oil refining
and offers a variety of products related to oil sector.
IOC’s strategic intent consists of the following elements in the
order given below:
Vision : IOC aims to achieve international standards of
excellence in all aspects of energy and diversified business with
focus on customer delight through quality products and service.
Mission : Maintaining national leadership in oil refining,
marketing, and pipeline transportation.
Objectives : Focusing on cost, quality, customer care, value
addition, and risk management.

10. Vision
• How the organization wants to be perceived in the
future – what success looks like
• An expression of the desired end state
• Challenges everyone to reach for something
significant – inspires a compelling future
• Provides a long-term focus for the entire
organization

11. Vision :
Burt Nanus, a well-known expert of organizational vision, has
defined vision as “a realistic, credible, and attractive future for an
organization.”
Oren Harari, another expert on organizational vision, defines vision
as “A vision describes a set of ideals and priorities, a picture of the
future, a sense of what makes the company special and unique, a
core set of principles that the company stands for, and a broad set
of compelling criteria that will help define organization success.”

12. Examples of Vision Descriptors
• Adept • Equal • Informative • Solid
• Aggressive • Disciplined • Innovative • Solvent
• Agile • Effective • Leading • Stable
• Aligned • Efficient • Logical • State of the Art
• Assertive
• Enduring • Major • Strong
• Available
• Expanding • Nimble • Streamlined
• Best-in-class
• Expert • Pioneering • Sufficient
• Challenging
• Fast • Protected • Strategic
• Clear
• Fast-paced • Organized • Sustainable
• Competent
• Complex • Financially-sound • Over-Arching • Timely
• Compliant • Focused • Quick • Value-added
• Conservative • Growth • Ready • Vigilant
• Coordinated • Healthy • Responsive • Visionary
• Critical • Improving • Savvy • World-class
• Direct • Incentivized • Simple
• Increasing

13. Examples of Vision :
Examples of Vision RIL – To achieve global leadership in
polymers, fibres and resin businesses through innovative
research and technology development in materials,
products, and applications through efficient, disciplined,
target-oriented, and cost-effective research and
development activities. Infosys – To be a globally
respected company that provides best of breed software
solutions by best-in-class people. Tata Tea – to be India’s
foremost tea-based beverage company. Dihe - to provide
dynamic learning environment by imparting holistic
education to develop outstanding professionals and
entrepreneurs who exemplify humanistic values, are
socially responsible stewards and create and
dissemination practitioner - oriented knowledge that will
uplift society.

14. Role of Vision in Strategy Formulation :
Role of Vision in Strategy Formulation Vision provides clue
about where the organization is heading for in future.
Since various strategies try to ensure that the organization
reaches its destination, these should be in accordance
with the vision. Vision of an organization tries to place it in
a unique position which requires unique actions. These
actions are defined by various strategies. Since vision is a
source of inspiration to organizational members and
encourages them for commitment, they tend to give their
full contributions in strategy formulation and
implementation.

15. Developing a vision :
Developing a vision Developing a vision is like having a dream
to be converted into reality in future. Following steps are
relevant for development of a vision: Conducting a vision audit
– to assess the current direction and momentum of the
organization. Targeting the vision – What are the boundaries
and constraints to the vision? What must be the vision
accomplish? What critical issues must be addressed in the
vision? Setting the vision context – identifying what the
organization’s future environment might look like. Developing
the future scenarios Generating the alternative visions
Choosing the Final Vision

16. Mission Statement
•Captures the essence of why the organization
exists – Who we are, what we do
• Explains the basic needs that you fulfill
• Expresses the core values of the organization
• Should be brief and to the point
• Easy to understand
• If possible, try to convey the unique nature of your
organization and the role it plays that differentiates
it from others

17. Examples: Mission Statements of :
Examples: Mission Statements of
Infosys: To achieve our objectives in an environment of
fairness, honesty, and courtesy towards our clients,
employees, vendors and society at large."
Tata Tea: Achieve market and thought leadership for
branded tea in India Be recognized as the foremost
innovator in tea and tea based beverage solutions Drive
long-term profitable growth Co-create enhanced value for
all stakeholders Make Tata Tea a great place to work

18. Examples: Mission Statements of :
DIHE : To provide world-class professional education in the
field of management by providing high quality instructions,
excellent academic and research environment which will
help our young scholars to develop competencies in dealing
with global complexity, emerging technologies and changes
and social and cultural diversity.

19. Examples – Good and Bad
Mission Statements
NASA
To Explore the
Universe and Does a good job of expressing the core values
Search for Life and of the organization. Also conveys unique
to Inspire the Next qualities about the organization.
Generation of
Explorers
Walt Disney
Too vague and and unclear. Need more
To Make People Happy
descriptive information about what makes the
organization special.

20. Example : Tata International :
Example : Tata International
Vision : To be the “ Leading International Business Company” of the
country and “International Arm” of the Tata Group, with a significant
overseas reach, presence and linkages, and with focus on facilitating
globalization of Tata Group’s core business.
Mission: Promote the Tata Brand Equity internationally. Promote
internationally, products and services from the Tata Group, as also from
other utility conscious Indian and overseas companies. Source world-class
products and services for marketing in India. Promote businesses with strong
comparative advantages for the company, and upgrade the company’s
strengths in the areas of technology, marketing, and finance. Identify global
sources of technology, marketing, and finance and other services to facilitate
strategic-alliances, joint ventures, and collaborations of Tata-group, in India
and overseas. Be a market driven company and continually strive to
stakeholder value and satisfaction through consistent quality in all areas of
our operations. Nurture and develop human resources, to enable us to
undertake the challenges of leadership and innovation, in our areas of
activity.

21. Components of Mission :
Components of Mission Organization’s Self-concept
(Identity) It’s role in the industry, change agent or
follower Organization’s Philosophy (Creed or ethos)
Assumptions, beliefs, values, aspirations etc.
Organizational Image External manifestation on the
basis of which society and its people create a
positive or negative view about the organization
Long-term Objectives Survival, growth, profitability,
shareholder value Nature of Business
Product/service, market segment and technology

22. Goals
• Describes a future end-state – desired outcome
that is supportive of the mission and vision.
• Shapes the way ahead in actionable terms.
• Best applied where there are clear choices about
the future.
• Puts strategic focus into the organization – specific
ownership of the goal should be assigned to
someone within the organization.
• May not work well where things are changing fast
– goals tend to be long-term for environments that
have limited choices about the future.

23. Developing Goals
• Cascade from the top of the Strategic Plan –
Mission, Vision, Guiding Principles.
• Look at your strategic analysis – SWOT,
Environmental Scan, Past Performance, Gaps . .
• Limit to a critical few – such as five to eight goals.
• Broad participation in the development of goals:
Consensus from above – buy-in at the execution
level.
• Should drive higher levels of performance and
close a critical performance gap.

24. Examples of Goals
Reorganize the entire organization for better responsiveness to customers
We will partner with other businesses, industry leaders, and government agencies in order to better
meet the needs of stakeholders across the entire value stream.
Manage our resources with fiscal responsibility and efficiency through a single comprehensive process
that is aligned to our strategic plan.
Improve the quality and accuracy of service support information provided to our internal customers.
Establish a means by which our decision making process is market and customer focus.

25. Features of Goals and
SMART DUMB
S – Specific D – Do able
M – Measurable U - Understandable
A – Attainable M – Manageable
R – Relevant B – Beneficial
T – Time-bound

26. Objectives
• Relevant - directly supports the goal
• Compels the organization into action
• Specific enough so we can quantify and measure the
results
• Simple and easy to understand
• Realistic and attainable
• Conveys responsibility and ownership
• Acceptable to those who must execute
• May need several objectives to meet a goal

27. Role of Objectives :
 Directions for Decision Making .
Clear definition of objectives encourages unified
planning Objectives work as a motivating force
Voluntary coordination is achieved easily if the
objectives are clearly specified and mutually agreed
upon Performance Standards.
 Objectives provide standard against which
performance of the organization can be measured.
Basis for Decentralization Integrating Organization,
Group and Individual

28. Examples of Objectives
Develop a customer intelligence database system to capture and analyze patterns in purchasing
behavior across our product line.
Launch at least three value stream pilot projects to kick-off our transformation to a leaner
organization.
Centralize the procurement process for improvements in enterprise-wide purchasing power.
Consolidate payable processing through a P-Card System over the next two years.
Monitor and address employee morale issues through an annual employee satisfaction survey across
all business functions.

29. Factors affecting Objective Setting :
Forces of environment (external
stakeholders)
Organization’s Resources (both human
and non-human)
 Internal Power Relationships Value
System of Top Executives (Ex. - money-
oriented vs. philanthropic) Awareness by
Management of the past objectives

30. Issues in Objective Setting :
Issues in Objective Setting Specificity ranges from generalized
organizational objectives to specific individual objectives Multiplicity
Multiple objectives aimed simultaneously – numbers should match
KRAs Periodicity Set for different time periods– long-term,
medium-term and short-term) Reality should be based on reality of
those factors which affect objective setting Quality good-which provide
specific direction for action and tangible basis for performance
evaluation vs. bad-which fail to do so)

31. Areas of Objective Setting :
Growth Volume IR Social Community Services
turnover Rural Development
Assets Family welfare
Profit Development of ancillary industries
profit margin
shareholder value Marketing Market share
new products
new markets
customer value Employees Attracting and retaining talent benefits
HRD

32. Change in Objectives :
Change in Aspiration level of Top Management
Demand for change by Stakeholders
Change in Environment
Change in Life-cycle of Organization

33. Goals vs. Objectives
GOALS OBJECTIVES
Very short statement, few Longer statement, more
words descriptive
Broad in scope Narrow in scope
Directly relates to the Mission Indirectly relates to the Mission
Statement Statement
Covers long time period Covers short time period (such 1
(such as 10 years) year budget cycle)

34. Business Defination

35. Business Definition :
A business definition is a clear-cut statement of the
business or a set of businesses, the organization engages in
presently or wishes to pursue in future. Then it prescribes
the arena in which the organization will play and compete.
 Business can be defined along three dimensions-product,
customer, and technology. However, whatever dimension is
chosen for defining business, it must reflect two features:
focus and differentiation.
• Focus of business may be defined in terms of the kind of
functions the business performs rather than the broad
spectrum of industry in which the organization operates.
Differentiation in business is how an organization
differentiates itself from others so that the business
concentrates on achieving superior performance in the
market.

36. The context of defining business :
The context of defining business An organization has to define its business
in three contexts:
Customer Segment : what is our business is not determined by the
producer but by the consumer….by the want the customer satisfies when
he buys a product or service Who is the customer? (location, behavior,
how to reach)
Product : Every organization defines the business it participates in and the
product it offers. What does the customer buy?
Technology : Technology consists of equipment, machines, tools and
other physical aspects , and sets of activities , methods, and processes
used for the production and delivery of product. What does the customer
consider value?

37. EXAMPLES OF BUSINESS DEFINATION
COMPANY PRODUCTS Business Definition
HUL FMGC To meet everyday needs of people
everywhere with branded products.
Kodak India Cameras and A quality oriented Photographic
Photographic films System ,appealing to customers who
desires instant Photography.
Modern Foods Bakery Nutritional food for public who
desires instant food
Hero Cycles Bicycles Functionally valuable bicycles that
common people can afford to buy.
Indian Oil Petro Products To provide various type of safe and
cost energy.

39. Bharti Airtel
• Largest Private Integrated Telecom Company in
India
• 3rd Largest Wireless Operator in the World
• Largest & Fastest Growing Wireless Operator in
India
• Largest Telecom Company listed on Indian Stock
Exchange

40. Vision 2020
• To build India's finest business conglomerate
by 2020
• Supporting education of underprivileged
children through Bharti Foundation
• Strategic Intent:
– To create a conglomerate of the future by bringing
about “Big Transformations through Brave
Actions.”

41. Mission
• “ We at Airtel always think in fresh and
innovative ways about the needs of our
customers and how we want them to feel. We
deliver what we promise and go out of our
way to delight the customer with a little bit
more”

42. Core Values
• Empowering People - to do their best
• Being Flexible - to adapt to the changing
environment and evolving customer needs
• Making it Happen - by striving to change the
status quo, innovate and energize new ideas with
a strong passion and entrepreneurial spirit
• Openness and transparency - with an innate
desire to do good
• Creating Positive Impact – with a desire to create
a meaningful difference in society.

43. Objectives/Goals
• To undertake transformational projects that
have a positive impact on the society and
contribute to the nation building process.
• To Diversify into new businesses in
agriculture, financial services and retail
business with world-class partners
• To lay the foundation for building a
“conglomerate” of future

44. Airtel – Strategy
MANTRA : Focus on Core Competencies and
Outsource the rest!
Product
Innovation
Core
Pricing VAS
Competencies
Marketing
and
Branding

45. Thank you!