2. Strategic Management
Strategic management is defined as a
dynamic process of formulation ,
implementation ,evaluation and control of
strategies to realize the organization’s
strategic intent.
3. STRATEGIC
Intent
It refers to purpose for what
organization strive for. Organization
must define “what they want to
do”and “why they want to do”.
*This “why they want to do”
underlines the end result and in
management terms it is known as
strategic intent .
_ professors Gery johnson and kavan scholes.
professors Gery johnson and kavan scholes.
Definition:-
“strategic intent is one that
encapsulates the desired
future state or aspiration of
an org. – the sense of
discovery and destiny –
that motivates managers
and employees alike
throughout the
organisation .”.
4. Hierarchy of strategic intent
Vision
Mission
Business definition
Goals
Objectives
5. VISION
A vision statement is a picture of what you want
to achieve.
Vision as a realistic ,credible ,and attactive for
an
Organisation.
Example:- Tata tea – to be india’s foremost tea
based beverage company.
6. Benefits of vision
Good visions are inspiring.
Good vision foster long term thinking.
Good vision foster risk-taking and experimentation.
Vision empowers people and helps focus their efforts.
Vision brings change and hope for the future.
Good vision clarifies the direction.
7. Mission
Is defined a fundamental unique purpose that sets a business
apart from other firms of its type and identifies its scope of its
operations in product and market terms.its is a statement which
defines the role that org.plays in society
Difference b/w vision and mission
* Vision is forward looking and mission stateswhat org.is and why it exists .
* Vision emphasis on long term conceptwith very high level of achievementand
mission deals with product ,services offers,way these are offered.
8. Mission
statement
Features of mission statement
It should be feasible.
It should be precise.
It should be clear.
It should be motivating.
It should be distinctive.
It should include major components of strategy.
It shoulf indicate how objectives are to bo accomplished.
Is the description of
org.mission .Explicit mission
statement is desirable as it
servesthe purpose of
communicating to the
organization’s members
about the corporate
philosophy ,character and
image of org.which
governtheir behavior in
org.
9. Examples of mission statement
Tata tea:
Achieve market and thought leadership for branded tea in india
Drive long term profitable growth
Co –create enhanced value for stakeholders
Make tata tea a great place for work
10. Business Definition
Is clear cut statement of the business or a set of business, the
org.engages in presently or wishes to pursue in future. Then it
prescribes the area in which the org will play compete
Business can defined along three dimensions —Product ,customer
and technology.
Business must reflect two features: Focus and Differentiation
Example: HUL business definition :” to meet everyday needs of
people everywhere with branded products” .
11. GOALS AND OBJECTIVES
Goals denote what an organisation hopes to accomplish in a future
period of time .They represent the future state or outcome of effort
put in now
Objectives are the ends that state specifically how the goals shall
be achieved . They are concrete and specific in contrast to goals
that are generalised.
Goals and objectives are the end results which an organization
strives for
There may be different ways in expressing end result like market
leadership , a Certain percentage increase in sales in particular
year.
12. Example of Goals and Objectives
For example ,if an organization has a goal to
“grow revenues”.An objective to achieve
the goal may be “introduce 2 new products
by 2020”.
Other example of common objectives
are,increase revenue by20 % 2020,reduce
overhead costs by 15% by 2020 …..etc.
13. Difference B/W Goals and Objectives
GOALS
1. Goals are final results or
outcome of an endeavor.
2. Goals define what you want
to achieve.
3. Goals are broader than
objectives
4. Goals may not be measurable
.
5. Goals have a longer time –
frame.
OBJECTIVES
1. Objectives are specific results
that help to achieve the final
goal.
2. Objectives defined how you
are going to achieve the goal.
3. Objectives are more specific
than goal
4. Objectives are measurable.
5. Objectives have a shorter time-
frame.
14. Features of goals and objectives
GOALS
They speak of both financial
and non – financial issues
They facilitate reasoned trade
–offs
They can be reached with a
stretch
They cut-across functional
area
Objectives
They are measurable
They incorporate the
dimension of time
They reduce the
conflict
15. Significance of OBJECTIVES
1. It serve the process of revival.
2. It ensure growth.
3. It acts as base for business decisions.
4. It set standards for performance.
5. They Decides the status of company in external envir.
6. They provide base for decentralisation.
7. They bind org. ,Group and induviduals.
16. Case study:- Apple’s corporate
Apple Inc.’s corporate vision is “to make the best products
on earth,and to Leave the world better than we found it .”
Apple’s corporate mission is “to bring the best personal
computing product and support to students
,educators,designers,scientists,engineers,businesspersons
and consumers in over 140 countries around the world”.
