Strategic Management - Concept Of Corporate Strategy
Strategic Intent - Mission and Objectives
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CK Prahald and Hamel coined the term ‘strategic intent’ to indicate an obsession of an organization, some times having ambitions that may even be out of proportion to their resources and capabilities.
Strategic Intent
CK Prahald and Hamel coined the term ‘strategic intent’ to indicate an obsession of an organization, some times having ambitions that may even be out of proportion to their resources and capabilities. They explain the term ‘strategic intent’ like this.
“On the one hand, strategic intent envisions a desired leadership position and establishes the criterion the organization will use to chart its progress…. At the same time, strategic intent is more than simply unfettered ambition.
The concept also encompasses an active management process that includes
1. focusing the organization’s attention on the essence of winning,
2. motivating people by communicating the value of the target,
3. leaving room for individual and team contributions,
4. sustaining enthusiasm by providing new operational definitions as circumstances change and
5. using intent consistently to guide resource allocations”.
Hamel and Prahlad quote several examples of global firms, almost all of American and Japanese origin, to support their view. In fact, the concept of strategic intent –as evident from their path breaking article, published in 1989 in the Harvard Business Review- seems to have been proposed by them to explain the lead taken by Japanese firms over their American and European counterparts.
Indian examples of companies with strategic internet are late Dhirubai Ambani’s Reliance group with the strategic intent of being a global leader of being the lowest cost producer of polyester products a status achieved with vertical integration and operational effectiveness. The Indian hardware giant, HCL’s aspiration to become global software and service company is working with the strategic intent of putting hardware, software and networking together and making it work At Procter & Gamble (P&G) employees participate in a program the CEO calls “combat training, “The program’s intent is to focus on ways P&G can beat the competition.
CK Prahald and Hamel coined the term ‘strategic intent’ to indicate an obsession of an organization, some times having ambitions that may even be out of proportion to their resources and capabilities. They explain the term ‘strategic intent’ like this.
“On the one hand, strategic intent envisions a desired leadership position and establishes the criterion the organization will use to chart its progress…. At the same time, strategic intent is more than simply unfettered ambition.
The concept also encompasses an active management process that includes
1. focusing the organization’s attention on the essence of winning,
2. motivating people by communicating the value of the target,
3. leaving room for individual and team contributions,
4. sustaining enthusiasm by providing new operational definitions as circumstances change and
5. using intent consistently to guide resource allocations”.
Hamel and Prahlad quote several examples of global firms, almost all of American and Japanese origin, to support their view. In fact, the concept of strategic intent –as evident from their path breaking article, published in 1989 in the Harvard Business Review- seems to have been proposed by them to explain the lead taken by Japanese firms over their American and European counterparts.
Indian examples of companies with strategic internet are late Dhirubai Ambani’s Reliance group with the strategic intent of being a global leader of being the lowest cost producer of polyester products a status achieved with vertical integration and operational effectiveness. The Indian hardware giant, HCL’s aspiration to become global software and service company is working with the strategic intent of putting hardware, software and networking together and making it work At Procter & Gamble (P&G) employees participate in a program the CEO calls “combat training, “The program’s intent is to focus on ways P&G can beat the competition.
Tags : Strategic Management - Concept Of Corporate Strategy
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