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AMITY GLOBAL BUSINESS SCHOOL
Strategy Intent ,Business visions and missions
WHAT IS STRATEGY?• Where is the business trying to get to in the long-term? Direction
• Which markets should a business compete in and what kind of activities are involved in such markets?
Markets and Scope
• How can the business perform better than the competition?Advantage
• What resources are required in order to be able to compete? Resources
• What external, environmental factors affect the businesses' ability to compete?Environment
• What are the values and expectations of those who have power in and around the business?Stakeholders
STRATEGIC INTENT
Ambitious and
Compelling Dream
Emotional and
Intellectual Energy
Journey to the Future
STRATEGIC FIT MODEL
Strategic Mindsets
STRATEGIC INTENT MODEL
Strategic thinking is driven by the match between current capabilities and existing opportunities
Searching for sustainable advantages
Finding protected niches
Strategic thinking is driven by bridging gap between today’s reality and tomorrow’s vision
Finding ways to leverage resources
Outpacing competitors in building new advantages
Making new industry rules
APPROACHES TO COMPETITIVE INNOVATION
Building layers of advantage Wider a company’s portfolio of advantages, the less risk it faces
in competitive battles Aim for differentiation + cost reduction Sources of competitive advantage are mutually desirable layers,
not mutually exclusive choices
APPROACHES TO COMPETITIVE INNOVATION
Searching for loose breaks Required to break into a market or challenge a
competitor
• Attack outside existing market
• Remain unnoticed
APPROACHES TO COMPETITIVE INNOVATION
Changing the terms of engagement Barriers to Entry v/s Barriers to Imitation
• Standardized machine components reduced cost• Distribution through office product dealers
• Create a national service network
APPROACHES TO COMPETITIVE INNOVATION
Competing through collaboration Win without fighting “Enemy’s enemy is your friend”
• Calibrate competitor’s strength• Assessed the progress US
rivals had made in cost reduction, quality and technology
ExternalAudit
InternalAudit
Long-TermObjectives
Generate,Evaluate,
SelectStrategies
ImplementStrategies:
Mgmt Issues
ImplementStrategies:Marketing,Fin/Acct,R&D, CIS
Measure &Evaluate
Performance
Vision &
Mission
COMPREHENSIVE STRATEGIC MANAGEMENT MODEL
Vision and Mission
Vision versus M
issionW
hat Do
We
Wan
t to
Beco
me?
Wh
at
Is O
ur
Bu
sin
ess?
Input into developing
Important for managers and
executives
Should be
short
Prefe
rably
one
sente
nce
VISION
1. What Do We Want to Become?
Long Te
rm
Work assignm
ents
Plans
Form
ulatin
g
stra
tegie
sEstablishing
objectives
Design of managerial jobs
Foun
dation
for
prio
rities Reaso
n f
or
bein
g
1. What Is Our Business?
Mission
Procter & Gamble
will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with industry leadership in sales, profit, and value creation, allowing our people our shareholders, and the communities in which we live and work.
2. The Process of Developing Vision and Mission Statements
3. Prepare a vision and mission statement
2. Background information.
1. Alternative strategies
4 .Merge into single document
5. Final documents
1. Clear vision and mission statements are needed before alternative strategies can be implemented.
2. Select several articles about these statements and ask all managers to read these as background information.
3. Ask managers themselves to prepare a vision and mission statement for the organization.
4. Merge these statements into a single document and distribute the draft statements to all managers.
5. Extent that all managers have input into and support the final documents, organizations can more easily obtain managers
3. Mission Statement Components
Customers - Who are the firm’s customers?
Products or services - What are the firm’s major products or services?
Markets - Geographically, where does the firm compete?
Technology - Is the firm technologically current?
Concern for survival, growth, and profitability - Is the firm committed to growth and financial soundness?
Philosophy - What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
Self-concept - What is the firm’s distinctive competence or major competitive advantage?
Concern for public image - Is the firm responsive to social, community, and environmental concerns?
Concern for employees - Are employees a valuable asset of the firm?
4. Benefits of Having a Clear Mission and Vision
1. Achieve clarity of purpose among all managers and employees.
2. Provide a basis for all other strategic planning activities.
3. Provide direction.
4. Provide a focal point for all stakeholders of the firm.
5. Resolve conflict views between managers.
6. Promote a sense of shared expectations among all managers and employees.7. Project a sense of worth and intent to all stakeholders.
8. Project an organized, motivated organization worthy of support.
9. Achieve higher organizational performance.
10. Achieve synergy among all managers and employees
5. Evaluate mission statements of different organizations
Procter & Gamble will provide branded products and services of superior quality and value (7) that improve the lives of the world’s (3) consumers. As a result, consumers (1) will reward us with industry leadership in sales, profit (5), and value creation, allowing ourpeople (9), our shareholders, and the communities (8) in which we live and work to prosper.
(Author comment: Statement lacks three components: Products/Services, Technology, and Philosophy)
We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient foods and beverages (2). We seek to produce healthy financial rewards for investors (5) as we provide opportunities for growth and enrichment to our employees(9), our business partners and the communities (8) in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity (6).
(Author comment: Statement lacks three components: Customers, Technology, and Self-Concept)
Broad in scope
Generate strategic alternatives
Not overly specific
Reconciles interests among diverse stakeholders
Finely balanced between specificity & generality
Broad in scope
Generate strategic alternatives
Not overly specific
Reconciles interests among diverse stakeholders
Finely balanced between specificity & generality
Effective Missions
Arouse positive feelings & emotions
Motivate readers to action
Generate favorable impression of the firm
Arouse positive feelings & emotions
Motivate readers to action
Generate favorable impression of the firm
Effective Missions
Reflect future growth
Provide criteria for strategy selection
Basis for generating & evaluating strategic options
Are dynamic in nature
Reflect future growth
Provide criteria for strategy selection
Basis for generating & evaluating strategic options
Are dynamic in nature
Effective Missions
Mission Elements
CustomersMarkets
Employees
PublicImage
Self-Concept Philosophy
SurvivalGrowthProfit
ProductsServices
Technology
PEPSICO MISSIONPepsiCo’s mission is to increase the value of our
shareholders’ investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.
THANK YOU