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.
2. Strategic Intent
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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
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What a firm would ultimately like to
become
Future aspirations that lead to an
inspiration
It is more dreamt of than articulated
4. Example
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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
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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
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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
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• 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
12. Goals
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What an oaganisation hopes to achieve
Consists of various financial & non-
financial issues
Generalised
qualitative
13. Objectives
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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
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Goals Objectives
15. Role of objectives
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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
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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
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Specificity
Multiplicity
Periodicity
Verifiability
Reality
Quality
18. What objectives are set?
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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?
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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
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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
Hinweis der Redaktion
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.