BS L05 Strategic Intention

8/9/2019 BS L05 Strategic Intention

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STRATEGIC INTENTION

Prof.Dr.Dr.Dr.H.C. Cons tantin B ratianu

Facul ty of Bus iness Adm inist ration

Academy of Economic Stud ies

Buc harest , Romania


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Strategic

Intention

Strategic

Analysis

Strategies

Elaboration

Strategies

Implementation

Strategic management

process


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Strategic Intention

Vision Mission StrategicObjectives


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The Vision

The vision of an organization represents an ideal stateprojected in the future and which shapes a desirabledevelopment of that particular organization.

The vision implies a dynamic way of thinking capableto evaluate the real chances of development of theorganization on the long term.

Not anyone has this ability to see the development of the

organization in time.

The vision represents one of the most essentialqualities ofleaders.


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Simon Wootton & Terry Horne, Strategic thinking, Kogan

Page, London, 2010, p 67.

Without a great dream, nothing great will be achieved. But

great dreams are not sufficient. There must be the

means of delivery key resources, key skills and key

actors to deploy them.

An organization without a shared vision that is positive and

hopeful is more likely to have people with the thinking

skills needed to turn that vision into reality. Your best

hope must be realistic.


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GENERAL MOTORS (GM)

Vision:

General Motors vision is to be the world leader int ranspo rtant ion prod ucts and related services,

earning its customer enthusiasm throughcon t inuous improv ement dr iven by the integr i ty ,

teamwork and inno vat ion o f GM people GM has defined 6 co re values:

1.Custom er enthus iasm

2.Integri ty & accoun tabi l i ty

3.Teamwork4.Innovation

5.Cont inuous improv ement

6.Ind ividual respect and responsabi l i ty


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Timken Company

We are dedicated to improving our customers

performance by apply ing our k now ledge of f r ic t ion

management and power transm ission to del iver

unparal led value and inn ovation all around the

wor ld .

TIMKEN: Where you tu rn

Our fr ic t ion m anagement and power transm iss ion

products are found wherever machines turnfrom

industr ia l equipment and precis ion instrum entat ion

to househo ld appl iances and vehic les.


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Kings College of London

Kings will built on its numerous accomplishments and

formidable current advantages to become an

outstanding university institution comparable in all

respects with the best in the worlds

For Kings the overarching vision over the next decade is

one of quality and distinction. Already a momentum is

being created in the last 12 months the College has

climbed up the Times Higher Education SupplementWorld League Tables from 73rdto 46th. This is an

outstanding achievement.


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John P. Kotter, Leading change, Harvard Business School

Press, 1996, pp.67-84

Vision refers to a picture of the future with some implicit orexplicit commentary on why people should strive to

create that future.

A good vision has 3 main purposes:

- To show the direction of action

- To motivate people for change

- To align all forces and resources for change


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John P. Kotter, Leading change, Harvard Business School

Press, 1996, pp.67-84

Character ist ics of an effect ive v is ion:

Imaginable: Conveys a picture of what the future will look

like.

Desirable:Appeals to the long-term interests of employees,

customers, stockholders, and others who have a stake inthe enterprise.

Feasible: Comprise guidance in decision making.

Focused: Is clear enough to provide guidance in decision

making.

Flexible: Is general enough to allow individual initiatives.

Communicable: Is easy to communicate and explained.


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The Mission

The mission of an organization represents its reason of

being and creating value for consumers and society.

The mission integrates the fundamental law of theorganization and clarifies its vision.

The vision focuses on the internal image of the

organization, while the mission focuses on the externalimage of the organization.


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Mission statement (I)

A general statement of the vision.

A communication of the fundamental values that thetop management assumes

A clear presentation of the fundamental or strategicobjectives of the organization

A correlation with the social responsibility of theorganization.


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Peter Drucker, Management: Tasks, responsibilities,

practices, Harper Business, 1993 (p.17)

Management has to give direction to the

institution it manages. It has to think

through the institutions mission, has to set

its objectives, and has to organizeresources for the results the institution has

to contribute


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Peter Drucker, Management: Tasks, responsibilities,

practices, Harper Business, 1993 (pp. 60-61)

Another conclusion is that a business cannot be defined or

explained in terms of profit. Asked what a business is,

the typical businessman is likely to answer, An

organization to make a profit. The typical economist is

likely to give the same answer. This answer is not o nlyfalse, it is irrelevant.

To know what a business is we have to start with its

purpose. Its purpose must lie in society since business

enteprise is an organ od society. There is only one validdefinition of business purpose: to c reate a cus tomer


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Examples of missions

Mission for Maytag Company:

Improvement of quality of life of citizens households bydesigning, executing and sale of the best homeappliances in the world.

Mission for the Electricity Company of Seattle City inWashington state:

To be the private municipal company most focused oncustomers, the most competitive, efficient, innovative

and environmentally responsible, in the U.S.A.


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Coca-Cola Company (I)

Everything we do is inspired by our enduring mission:

To refresh the worldin body, mind, and spirit.

To inspire moments of optimismthrough our brandsand our actions.

To create value and make a differenceeverywhere

we engage.


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Coca-Cola Company (II)

Values: Leadership: The courage to shape a better future.

Passion: Committed in heart and mind.

Integrity: Be real. Accountability: If it is to be, its up to me.

Collaboration: Leverage collective genius.

Innovation: Seek, imagine, create, delight.

Quality: What we do, we do well.


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Strategic objectives

Strategic management is a major goals orientedprocess for which the achievement is projected in time.

The achievement of these strategic objectivesrepresents in the same time the achievement of the

organizations mission for a certain time scale. The strategic objectives must be:

- very clearly and realistically formulated

- accepted by all employees

- action oriented- joined by metrics/ assessment systems

Documents

BS L05 Strategic Intention