CHAPTER TWO
Strategy formulation
The Business Mission
Strategic intent:
St rat e gic in t e n t is a high- leve l
statement of the means by which
your organization will achieve its
vision. It is a statement of design for
creating a desirable future (stated in
present terms).
CONT…
Simply put, a strategic intent is
your company's vision of what
it wants to achieve in the long
term. S trategy should be a
s t r e t c h e x e r c i s e , n o t a f it
exercise. Strategic intent is about
clarity, focus and inspiration.
VISION
Corporate vision is a shor t and
inspiring statement of what the
organization intends to become and
to achieve at some point in the
future, often stated in competitive
terms. Vision refers to the category
of intentions that are broad, all-
inclusive and forward-thinking.
CONT…
It is the image that a business
must have of its goals before it
sets out to reach them. It
describes aspirations for the
future, without specifying the
m eans that will be used to
achieve those desired ends .
CONT…
Strategic vision is concerned with “where we
a r e g o i n g a n d w h y,” i . e . i t p o r t r a y s a
company’s future business scope.
MISSION
Mission Statement describes what
business you’re in and who your
customer is. As such, it captures
the very essence of your enterprise -
its relationship with its customer.
Developing mission statement is
the step which moves your strategic
planning process from the present
to the future.
CONT…
It depicts the mission statement
connects “today” with the “future
.” Your mission statement must
“work” not only today but for the
intended life of your strategic
plan of which your mission
statement is a part.
CONT…
A company’s mission statement usually
deals with the company’s present business
scope and purpose-“where we are now, what
we do, and why we are here.” Mission has a
societal orientation and is a statement which
reveals what an organization intends to do
for a society.
NATURE OF BUSINESS MISSION
It gives social reasoning. It specifies the role
which the organization plays society. It is
the basic reason for existence
It is philosophical and visionary and relates
to top management values. It has long term
perspective.
It legitimizes societal existence
It reflects corporate philosophy, identity,
character and image of organization.
VALUES
For any statement, whether mission or vision, to be
embraced and acted upon, it must reflect the values
of your organization.
Values describe what your management team really
cares about. What it holds dear. What “makes ‘em
tick.” How would your managers respond to a trade-
off between product quality and prof it? That’s really
a question of value.
CORPORATE GOALS & OBJECTIVES
Objectives are statements of
desired outcomes or
expectations
“Managing Without
Objectives Is Like Taking A
Trip Without Knowing The
Destination”
MANAGEMENT BY OBJECTIVES (MBO)
COMPANY
PLANS
DEPARTMENTAL
& INDIVIDUAL
IMPROVEMENT
PLANS
PLAN together MANAGERS’
PLANS
Implement together
Review together
REVIEW CONTROL OF
MEETINGS INFORMATION
SETTING OBJECTIVES
What is to be
accomplished
How will it be Who is
accomplished The
responsible
OBJECTIVE
When is it to be
accomplished
CONT…
Role of Objectives:
1. Legitimacy
2. Direction
3. Coordination
4. Benchmarks for success
5. motivation
CHARACTERISTICS OF OBJECTIVE
Objective form a Hierarchy
Network
Multiplicity of Objective
Long and short-range objective
GOALS AND OBJECTIVES
OBJECTIVES
GOALS
Specific
Broad Statements
Precise
General Intentions
Tangible
Intangible
Concrete
Abstract
Measurable
Generally hard to
measure
Thank You