Strategic Intent

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STRATEGIC INTENT The foundation for the strategic management is laid by the hierarchy of strategic intent. The concept of strategic intent makes clear WHAT AN ORGANISATION STANDS FOR, Harvard Business Review, 1989 described the concept in its infancy. Hamed and Prahalad coined the term strategic intent. A few aspects about strategic intent are as follows:




Vision serves the purpose of stating what an organization wishes to achieve in the long run. Mission relates an organization to society. Objectives state what is to be achieved in a given time period.

The strategic intent concept also encompasses as active management process that includes focusing the organizations attention on the essence of winning.

VISION Kotter description of something (an organization, corporate culture, a business, a technology, an activity) in the future. The definition itself its comprehensive and states clearly the futurisitic position. Miller and Dess defined vision as the category of intentions that are broad, all inclusive and forward thinking The definition lays stress on the following : broad and all inclusive intentions; Vision is forward thinking process.


BHEL : A world class innovative , competitive and profitable engineering enterprise providing total business solutions Colgate Palmolive : To be the company of first choice in oral and personal hygiene by continuously caring for consumers and partners

CREATING A SHARED VISION A shared vision, meaning that individuals from across the organisation have a common mental image and a mutually supported set of aspirations that serve to unite their efforts. A common inspirational image injected into the veins of the organisation

CUTTING A STONE OR BUILDING A CATHERDAL The importance of having a shared vision is best illustrated by the story of a traveller passing a stone quarry who came across these people cutting stones. He asked the first; what are you doing? And he replied irritably, cant you see . I am cutting a stone.

When he went further, he saw the second man cutting a similar stone and he again asked, what are you doing? and the man replied, I am earning a living. A little further he came across a third man cutting another stone. When he asked, what are you doing the man thrust his chest out proudly and said, I am building a cathedral!

Mission Organizations are founded for a purpose, the reason for the organization's existence, that is, the organization's mission. Describes the organization's values, aspirations and reason for being. According to Thompson, The mission reflects the essential purpose of the organization, concerning particularly why it is in existence, the nature of the businesses it is in, and the customers it seeks to serve and satisfy

DEFINITION The mission is an enduring statement of purpose that distinguishes one business from other similar firms. It identifies the scope of its operation in product and market terms. It implies the image the firm seeks to project and reflects the values and priorities of the firms strategic decision makers. A public announcement to insider and outsiders the mission statement should support this position.

Examples of Mission Statementsa) Bharat Heavy Electricals Ltd. (BHEL) :- To achieve and maintain a leading position as suppliers of quality equipment, system and service to serve the national and international market in the field of energy. The areas of interest would be the conversion, transmission, utilisation and conservation of energy for applications in the power, industrial and transportation fields, to strive for technological excellence and market leadership in these areas.

b) Oil and Natural Gas Commission (ONGC) : To stimulate, continue and accelerate efforts to develop and maximise the contribution of the energy sector to the economy of the country. c) Cadbury India : To attain leadership position in the confectionery market and achieve a strong national presence in the food drinks sector d) Ranbaxy Laboratories : To become a research-based international pharmaceutical company

A vision statement what the company wishes to become in the (long term) future. the vision statement answers the question what do we want to become

Mission is what an organisation is and why it exists. The mission statement answers the question What is our business?

What objectives should be set ? According to Peter Druker, objectives should be set in the area of market standing, innovation productivity, physical and financial resources, profitability, manager performance and development, worker performance and attitude and public responsibility. Profit Objective : set multiple objectives, such as market share, new product development, quality of service etc. Ackoff call them performance objectives.

Marketing Objectives :- To increase market share to 20 percent within five years or To increase total sales by 10 percent annually. Productivity Objective : In terms of ratio of input to output. Social Objective : Financial Objective : Cash flow, debt equity ratio, working capital, new issues.