Strategy Formulation

MBA program
Lecture 02
ž  Company Mission: Unique purpose that sets a company apart and
identifies its organizational scope.
ž  Internal Analysis: Analysis of company’s resources and weaknesses.
ž  External Analysis: Factors and forces that affect strategic options.
ž  Strategic Analysis and Choice: Identifying a range of attractive
opportunities.
ž  Long term objectives: The results that an organization seeks to achieve
over a multiyear period.
ž  Generic Strategies: Fundamental philosophical options for the design
of strategies.
ž  Grand Strategies: The means of which objectives are achieved.
ž  Short term objectives
ž  Functional Tactics: Short term narrow scoped plans.
ž  Policies
ž  Leadership and Culture
ž  Strategic Control and Improvement
ž Vision vs Mission
ž  Mission tries to identify the purpose, philosophy and goals of an
organization where vision is to identify the long term destination of
an organization.
ž  Mission statement answers the question “What is our business”?
On the other hand vision statement answers “What do we want to
become”.
Vision statements:
‘To be the most admired and responsible integrated Power company
with international footprint, delivering sustainable value to all
stakeholder’

-TATA Power
‘Starbucks strives to ethically find highest quality coffee: a very
welcoming atmosphere and unequaled quality’
Starbucks Vision statement analysis:
§  The existing vision statement does not state what the company
wants to become nor it acknowledges the firms movement into
specialty tea offerings.
Starbucks ‘Improved’ Vision statement:
‘Starbucks vision is to be the most well known, specialty coffee and
pastry restaurant in the world, offering sincere customer service
and a welcoming atmosphere’.

The improved statement reveals the company’s aspirations for the

future and acknowledges that upscale tea and pastries complement
their premium coffee offerings.
u  Customers- Who are?
u  Products or Service- What are the major products?
u  Markets-Geographically, where it compete?
u  Technology-What are they?
u  Growth-commitment towards growth?
u  Philosophy-beliefs, values and aspiration
u  Concern for public image-responsive for social, community and
environmental concern?
u  Concern for employees
We will become the most admired and responsible Power Company
delivering sustainable value by:
ž  Operating our assets at benchmark levels
ž  Executing projects safely, with predictable benchmark quality, cost
and time
ž  Driving organizational transformation and creating a culture that
will help us to deliver on our strategic plans
ž  Achieving our sustainability intent of ‘Leadership with care’
ž  Care for environment, care for community and care for
stakeholders.

- The mission statement of TATA

power.