STRATEGY & TACTIC Learning

objectives
• Explain the concepts of strategic intent, stretch, leverage, and fit
• Describe and differentiate between STRATEGY & TACTIC

© Azhar Kazmi & Adela Kazmi, 2015 1

 You
are
here

Establishment of
Formulation of Implementation of Strategic
strategic
strategies strategies evaluation
intent

Strategic control

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 Strategic Intent

• Strategic intent is the purpose for which an organisation strives for.

These could be in the form of vision and mission statements for the
organisation as a corporate whole.
• At the business level of firms these could be expressed as the
business definition and business model.
• In precise terms, as an expression of aims to be achieved
operationally, these may be the goals and objectives.
• Strategic intent lays down the framework within which firms would
operate, adopt a predetermined direction and attempt to achieve
their goal.

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 Tactic Vs. Strategy
• The terms tactic and strategy are often confused: tactics are the
actual means used to gain an objective.
• while strategy is the overall campaign plan, which may involve
complex operational patterns, activity, and decision-making that
govern tactical execution.
• Tactic is a skillful way of doing something or making something
happen. It is more short term.
• Strategy is a plan of action designed to achieve a long-term or
overall aim. It is long term in perspective.

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 Understanding Strategic Intent

• The term strategic intent has been understood as an obsession with an

organisation: an obsession by having ambitions that may even be out of
proportion to their resources and capabilities. This obsession is to win at all
levels of the organisation while sustaining that obsession in the quest for
global leadership.
• The concept also encompasses an active management process that
includes: focusing the organization's attention on the essence of winning,
motivating people by communicating the value of the target, leaving room
for individual and team contributions, sustaining enthusiasm by providing
new operational definitions as circumstances change and using intent
consistently to guide resource allocations

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 Concept of Stretch, Leverage
and Fit
• Stretch is a misfit between resources and aspirations
• Leverage refers to concentrating, accumulating, complementing,
conserving, and recovering resources in such a manner that
meagre resource base is stretched to meet the aspirations that an
organisation dares to have.
• Fit means positioning the firm by matching its organisational
resources to its environment.

G. Hamel and C. K. Prahalad: "Strategy as Stretch and Leverage" Harvard Business Review, Mar - April 1993, pp. 75 - 84.

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 Concept of Stretch, Leverage
and Fit
• The strategic fit is central to the strategy school of positioning where
techniques such as SWOT analysis are used to assess
organisational capabilities and environmental opportunities.

• The ideas of stretch and leverage belong appropriately to the

learning school of strategy where the capabilities are not seen as
constraints to achieving and the environment is perceived not as
something which is considered as given but as something which can
be created and moulded

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 PepsiCo
• Company Revenue: 70.37 Billion USD
• Number of employees worldwide:291,000
• Share of the food and beverage industry:
24.1%
• Number of brands that PepsiCo owns: 23

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Kazmi, 2015
 Strategic Intent of PepsiCo
• Performance with purpose
• Purpose has three elements. The first is human sustainability.
How do we make sure that we provide products that range
from treats to health foods and allow customers to make
balanced, sensible choices?
• The second element is environmental sustainability. How do
we make sure that, as a company, we replenish the planet and
leave the world a better place than it was when we began
playing around with it?
• The third element is talent. How do we make sure that people
who work for PepsiCo are able not just to make a living but
also to have a life?
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 PEP+ at PepsiCo (People and
Planet)
• Strategic end-to-end transformation to drive sustainable long-term value and competitive
advantage. Three pillars of pep+ drive action and industry-leading 2030 goals, including:
1. Positive Agriculture: spreading regenerative practices to restore the Earth across the
company’s entire agricultural footprint, approximately 7 million acres
2. Positive Value Chain:
1. Achieving Net-Zero emissions by 2040;
2. Becoming Net Water Positive; and
3. New goals to improve packaging sustainability, including reducing virgin plastic per serving by 50%
and bold new goals from Pepsi and Frito-Lay brands
3. Positive Choices:
1. Leveraging the scale and reach of its global brands to drive positive impact at scale;
2. Evolving its portfolio into spaces that are better for the planet and people, including plant-based
proteins, nuts & seeds and whole grains; and
3. Expanding its SodaStream business, now expected to avoid more than 200 billion plastic bottles by
2030

Source: https://www.pepsico.com/news/press-release/pepsico-announces-strategic-end- 10
to-end-transformation-pep-pepsico-positive09152021
Create a Strategic intent for a
firm that manufactures
automobiles.
• A firm that sells tea in national and
international markets.
• A firm that makes FMCG goods.

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Kazmi, 2015
 Strategic Fit
• Using Design Thinking and making it a
strategy
• Source:
https://hbr.org/2015/09/how-indra-nooyi-tur
ned-design-thinking-into-strategy

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Kazmi, 2015