Name of Institution

Strategic Direction
VISION, MISSION & BUSINESS DEFINITION
Module I

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 The Background Name of Institution

• Strategy Management is defined as a

dynamic process of formulation,
implementation, evaluation, and control of
strategies to realise the organization’s
strategic intent

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 Strategic Intent Name of Institution

In 1989, Gary Hamel and

C.K. Prahalad created the
concept of Strategic Intent

It was published in
Harvard Business Review

They argued that in order to

achieve success, a company
must reconciles purpose
(end) with its means through
Strategic Intent

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 What is Strategic Intent ?Name of Institution

• Strategic Intent is an ambitious &

compelling dream that energizes, which
provides the emotional and intellectual
energy for the journey to the future

• They say if strategic architecture is the

brain, Strategic Intent is the heart.

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 Name of Institution

• Vision serves the purpose of stating what an

organization wishes to achieve in the long run.
• Mission relates an organization to society.
• Business explains the business of an
organization in terms of customer needs,
customer groups and alternative technologies.
• Objectives state what is to be achieved in a
given time period.
 
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 Name of Institution

Mission & Vision Statements

• Companies summarize their goals and
objectives in statements. Both these things
serve different purposes for the company.
• The statements are
- Mission
- Vision

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 What is mission statement? Name of Institution

• A mission statement is a role, or purpose, by which

an organization intends to serve its stakeholders.
• It describes what the organization does (current
capabilities), who it to serve (stakeholders), and
what makes the organization unique (justification
for existence).
• Mission statements always exist at the top level of
an organization, but may also be set for different
organizational levels or components.
• A mission statement is simply an organizations
reason for existing.

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 Mission Statement Name of Institution

• Gives organization its own special identity,

business emphasis, and direction
- sets it apart from similar companies
- not “ to make money”
• It always answer the question – who we
are? & what we do ?

A company’s mission is not to make profit. The real mission is always – What
Will we do to make a profit

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 Components of Mission Name of Institution

• Customers
• Product or service
• Markets
• Technology
• Distinctive competence or major competitive
advantage
• Corporate philosophy
• Concern for survival, growth and profitabilty
• Concern for society
• Concern for employees
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 Vision Statement Name of Institution

• A Vision statement outlines WHERE a company

wants to be.
• Communicates both the purpose and values of
the business of organization.
• A vision statement talks about future of
organization.
• It answers the question, “Where do we aim to
be?”

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 Examples of Vision Name of Institution

• Infosys- To be globally respected

company that provides best of breed
software solutions by best-in-class people

• Tata tea- To be India’s foremost tea

based beverage company

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 Name of Institution

Examples of Mission Statement

• Infosys: To achieve our objectives in a environment
of fairness, honesty and courtesy towards our
clients, employees, vendors and society at large
• Tata Tea:
- Achieve market and thought leadership for branded
tea in India
- Drive long term profitable growth
- Co create enhanced value for stakeholders
- Make Tata Tea a great place for work

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 Name of Institution
Goals and Objectives
• Goals denote what an organization hopes to accomplish
in a future period of time. They represent the future state
or outcome of effort put in now.
• Objectives are the ends that state specifically how the
goals shall be achieved. They are concrete and specific
in contrast to goals that are generalized • Goals and
objectives are the end results which an organization
strives for
• There may be different ways in expressing end result like
market leadership , a certain percentage increase in
sales in particular year

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 Name of Institution
Features of Goals & Objectives
SMART DUMB
S – Specific D – Doable
M – Measurable U – Understandable
A – Attainable M – Manageable
R – Relevant B - Beneficial
T – Time bound

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 Role of Objectives Name of Institution

• Directions for decision making

• Objectives work as motivating force
• Performance standards
• Defines relationship with environment

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 Business Definition Name of Institution

- Is clear cut statement of the business or a

set of business, the org. engages in
presently or wishes to pursue in future.
-Business explains the business of an
organization in terms of customer needs,
customer groups and alternative
technologies.

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 Name of Institution
Abell Three Dimensional Business
Definition Model
• The Three Dimensional Business Definition framework from Harvard
Professor Derek F. Abell is a model that can be used
for defining the business of a company

• According to this model a business can be defined in terms of three

dimensions
- Customer needs ( WHAT is being satisfied)
- Customer groups ( WHO is being satisfied)
- Alternative technologies ( HOW are customer needs satisfied)

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 Name of Institution

Three Dimensions of Defining Business

e.g. ‘ designing waterproof digital sports watches’

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 Name of Institution

Example of Business Definition

HUL business definition: “To meet everyday

needs of people everywhere with branded
products”

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 The significance Name of Institution

• A clear business definition is helpful in identifying

several strategic choices.
• The choices regarding various customer groups,
various customer functions and alternative
technologies give the strategists various strategic
alternatives.
• The diversification, mergers and turnaround
depend upon the business definition.
• Customer oriented approach of business makes
the organization competitive
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