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8/8/2019 102. Strategic Intent
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StrategicManagement
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Hierarchy of Strategic Intent Hierarchy of Strategic Intent
V ision
Mission
V alues & Objectives
Goals
Plans
Most Integrative
Most Specific
Fewest in Number
Greatest in Number
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A Company·s Vision«A Company·s Vision«
A Strategic vision is a road map showing the route a
company intends to take in developing and strengthening its
business. It paints a picture of a company·s destination and
provides a rationale for going there«
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Vision Statements«Vision Statements«
We will become number one or number two in every market we serve, and
revolutionize this company to have the speed and agility of a small
enterprise.
To bring innovation and inspiration to every athlete in the world.
The vision of Ford is ´to become the world·s leading consumer company
for automotive products and services.µ
Nokia's vision is a world where everyone can be connected.
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A Company·s Mission«A Company·s Mission«
An enduring statement of purpose that distinguishes one
business from other similar firms. It defines scope of
operations, implies the image the firms seek to project and reflects the values and priorities of the firm. It provides a
public announcement to insiders and outsiders about what
the firm stands for, what makes firm different and more
effective competitor«
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Mission Statement«Mission Statement«
Why is this firm in Business?
What are our economic goals?
What is our Philosophy?
What are our Competencies?
What customers can we serve? What are our responsibilities to Stakeholders?
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Components of a Mission Statement«Components of a Mission Statement«
Customers
Product or Services
Markets
Technology
Concern for Survival, Growth, Profits«
Philosophy
Self ² Concept
Concern for public image
Concern for Employees
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Mission Statements«Mission Statements«
To stimulate, continue and accelerate efforts to develop and maximize the
contribution of the energy sector to the economy of the country.
To carry on the legacy of innovative thinking, whether to develop products that help
athletes of every level of ability reach their potential, or to create business
opportunities that set Nike apart from the competition and provide value for our
shareholders.
To build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services.
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Business Definition«Business Definition«
A Business Definition is a clear statement of the business
the firm is engaged in or is planning to enter.
We are in Beauty ² Enriching Business
- Helen & Curtis
We are in transportation Business
- TELCO
We are in business of Computing Technology - Intel
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Values
In high-performance organizations, values respect the interests of key stakeholders.
The values of a company should state:
How managers and employees should conduct themselves
How they should do business
What kind of organization they need to build to help achieve the company·s
mission
Organizational culture
The set of values, norms, and standards that control how employees work to
achieve an organization·s mission and goals
Often seen as an important source of competitive advantage
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Values at Nucor
´Management is obligated to manage Nucor in such a way that employees
will have the opportunity to earn according to their productivity.µ
´Employees should be able to feel confident that if they do their jobs
properly, they will have a job tomorrow.µ
´Employees have the right to be treated fairly and must believe that they
will be.µ
´Employees must have an avenue of appeal when they believe they are being
treated unfairly.µ
At Nucor, values emphasizing pay for performance, job security, and fair treatment for employees help to create an atmosphere that leads to high
employee productivity.
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Objectives & Goals Objectives & Goals
Objectives are an organization·s performance targets ²
the results and outcomes it wants to achieve. They function as yardsticks for tracking an organization·s
performance and progress«
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Roles of Objectives Roles of Objectives
Legitimacy
Direction
Coordination
B
enchmark for success Motivation
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Characteristics of Objectives Characteristics of Objectives
Objectives form a hierarchy
Objectives form a network
Multiplicity of Objectives
Long and Short ² range Objectives
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Strategic & Financial Objectives Strategic & Financial Objectives
Grow annual revenues by 5 ² 6% annually, increase
operating profit margins from 11 ² 16% percent within 5
years; trim the company·s 1200 food, household, and
personal care products down to 400 core brands; focus sales and marketing efforts on those brands with potential
to become respected, market-leading global brands; and
streamline the company·s supply chain«- Unilever
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