Strategic Intent ` Strategic intent is related to the ends as well as the objective/purpose of the organization.

Strategic intent aims to turn the vision into action Practical Aspects : Factors influencing strategic intent
The Board Top leadership Context

(Culture, values at corporate level, structure of ownership)

Expectation of stakeholders

Strategic intent

Process of strategy formulation (Assessment and choice)

Goals Vision (related to the organization) Economic growth /survival Value addition for shareholders

Highly inspired expectation

`Strategic

Assessment Assessment of strategy is about how and where the organization stands today. The purpose of this assessment is to see the current condition/position of the organization vis-avis the external environment.
Intent of the strategy Outcome Assessment of Strategy

Analysis of external factor

Choice of strategy

(business ambience, industry competition, opportunities: WTO; threats)

Leveraging

Results of operations

Analysis of internal resources

(Competencies weaknesses, strengths, resources)

In strategic assessment, a series of analytical tools, approaches, techniques or framework are used. These are: Total Quality management  Value chain analysis  Plan the scenario  Benchmarking  Shareholders linked value analysis  Business process re-engineering/design  Analyzing core competency  Time frame-oriented competition


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PEST (Political, Economic, Social, and Technologyrelated Changes) analysis Competitive advantage (a) Define strategic degree of freedom (b) Critically challenge existing practices/wisdom (c) Benchmark the product (d) Identify the key success factors (KSFs) (e) Analyzing the competitive advantage (f) Michael de Kare Silver Strategy in Crisis: Why Business Urgently Needs a Completely New Approach, London, MacMillan,1997). De Kare-Silver gave the market commitment model. The model is a composite of the various threads of competitive strategy. This model is practice-oriented. It was also field-tested in a number of industries.

Model on commitment
Pricing
1 Design Innovation Politics-oriented Efforts Recognize Emotions/feelings 2

Share low Value premium 4 Services

COMMITMENT

Personal comprehensive availability

Performance orientation 3

Mutually beneficial

Functional Reliable Convenience Speed

Plan the Scenario Scenario planning commences with taking up two to four total pictures/ scenarios of the future.

Uniqueness of Core Competencies: The following are the unique features of core competencies: ` Inevitable for growth and survival of the organization and unique to the outfit [2] ` Outcome of mix of variety of skills, processes, resources, technologies etc. ` Not visible to competitors ` Core competencies are viable commercially and marketable ` They are only a few in number ` Inevitable for strategic choice to be made ` Inevitable for developing products and end products ` They are sustainable ` Core competencies are not easily imitable.

Distinctive Competencies/Capabilities of Business Units (a) Strategic assets (b) Reputation (c) Architecture (d) Innovation  Value chain analysis Value chain analysis involves dissecting the company into the chain of operations/activities as given in the Table
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Activities /operations: Human resource management Development of technology Purchase management Materials management Production /operations Commercial operations Works engineering/services group Logistics

Significance of Value Chain In simple terms, we call value chain as the value added at each stage, for instance, a motor car production. The finished product, that is, a car which comes out of the assembly line undergoes very many processes of products.
1 2 Panel makers on heavy presses 7 To buyers 3 Car assembly stage various parts filled 6 To retail outlets 4 Car comes out as finished product

Raw materials supply from steel foundry

5 To distributors

Operating Ambience Operating Environment of company

`

Buyers (threat of substitute) Suppliers (bargain power) TThe Environment New potential competitors Rivalry among competitors
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The Organization

Threat of Other Factors Threat of potential new entrants Distribution channel Legal constraints

Strategic Choice Strategic choice being the basic to the process of strategy for the business is linked to action. So, it pertains to the significant point as to which alternate options, the manager has to select/choose in order to get to a given position where it is today to where it aims to reach in course of time.
S/I
S/A

S/I = Strategic Intent S/A = Strategic Assessment S/C = Strategic Choice

S/C

Strategy formulation process; (a) Stakeholders stake (b) Ownership of the CEO/top team: (c) Tailor-made process design (d) Contribution of external consultants (e) Install a two-way communication system (f) Customer awareness (g) Technological innovations/changes (h) Technological innovations/changes (i) Understand organizational competencies (j) Supplier relationship (k) Earmark a moderator
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