Definitions:

1. “Strategic management is a stream of decisions and actions which lead to the development of
aneffective strategy or strategies to help achieve corporate objectives”. – Glueck and Jauch, 1984

2. “Strategic management is a process of formulating, implementing and evaluating cross-

functionaldecisions that enable an organisation to achieve its objective”. – Fed R David, 1997

3. “Strategic management is the set of decisions and actions resulting in the formulation and
implementation of plans designed to achieve a company’s objectives.” – Pearce and Robinson, 1988

4. “Strategic management includes understanding the strategic position of an organisation,

makingstrategic choices for the future and turning strategy into action.” – Johnson and Sholes, 2002

5. “Strategic management consists of the analysis, decisions, and actions an organisation undertakes
inorder to create and sustain competitive advantages.” – Dess, Lumpkin & Taylor, 2005

Definitions
In management, the concept of strategy is taken in broader terms.

Igor Ansoff (Father of Strategic Management) viewed that in developing strategy,

it was essential to systematically anticipate future environmental challenges to an
organization, and draw up appropriate strategic plans for responding to these
challenges.

“Strategy is organisation‘s pattern of response to its environment over a period of

time to achieve its goals and mission.”

In 1960‘s, Chandler defines strategy as “the determination of basic long-term

goals and objectives of an enterprise and the adoption of the course of action and
the allocation of resources necessary for carrying out these goals.”

According to Glueck, "Strategy is the unified, comprehensive and integrated plan

that relates the strategic advantage of the firm to the challenges of the
environment and is designed to ensure that basic objectives of the enterprise are
achieved through proper implementation process."
The analysis of the above definition describes the following:
 Unified comprehensive and integrated plan.
 Strategic advantage related to challenges of environment.
 Proper implementation ensuring achievement of basic objectives.
 Michael porter defines strategy as ―creation of a unique and valued position involving a different
activity from rivals or performs similar activities in different ways.
This definition consists of three basic elements:
1. Determination of long-term goals
2. Adoption of courses of action
3. Allocation of resources to achieve those goals

Nature of Strategic Management

Strategic Management can be defined as the art & science of formulating, implementing, and evaluating,
cross-functional decisions that enable an organisation to achieve its objectives. Strategic management is
different in nature from other aspects of management. An individual manager is most often required to deal
with problems of operational nature. He generally focuses on day-today problems such as the efficient
production of goods, the management of a sales force, the monitoring of financial performance or the design
of some new system that will improve the level of customer service.!

Need for Strategic Management

1. It helps the firm to be more proactive than reactive in shaping its own future.
2. It provides the roadmap for the firm. It helps the firm utilize its resources in the best possible
manner.
3. It allows the firm to anticipate change and be prepared to manage it.
4. It helps the firm to respond to environmental changes in a better way.
5. It minimizes the chances of mistakes and unpleasant surprises.
6. It provides clear objectives and direction for employees.

What is the Strategic decision-making process?

The strategic decision-making process is a structured approach to making the tough, long-term decisions that
will shape the direction of an organization. It is designed to incorporate objective analysis and subjective
judgment and generate buy-in and commitment among those involved in executing the strategies.

Here is a basic overview of the strategic decision-making process:

 Identify the Strategic Issue: Strategic issues are big, overarching questions about the organization’s
direction. Identifying these issues is the first step in the strategic decision-making process.
 Environmental and Organizational Analysis: This involves performing a detailed analysis of the
internal and external environment. The goal is to identify strengths, weaknesses, opportunities, and
threats (SWOT analysis) that the organization faces. This could also include analysis of competition,
market trends, social and economic trends, technological advances, and political and regulatory
changes.
 Generation of Alternatives: Several alternative strategies are generated based on the strategic issue
and the analysis. These alternatives should be diverse and explore different approaches to
addressing the strategic issue.
 Evaluation of Alternatives: Each alternative is evaluated against a set of criteria. These criteria could
include the potential for profit, alignment with the organization’s mission and values, feasibility,
acceptance among stakeholders, etc. The goal is to objectively assess the pros and cons of each
alternative.
 Choice of Strategy: Based on the evaluation, a strategy is chosen. The top executives in the
organization usually make this decision and reflect their judgment about the best course of action.
  Implementation of Strategy: The chosen strategy is translated into actionable steps, and resources
are allocated for execution. The details of the strategy are communicated throughout the
organization.
 Evaluation and Control: The implementation of the strategy is monitored, and its effectiveness is
assessed. Adjustments are made as necessary to stay on track toward the strategic objectives.

This process is iterative and often requires revisiting previous steps based on new information or
changing circumstances. It requires a balance between analysis and intuition, patience for long-term
results, and agility to adapt to change.

Strategic Intent: Meaning | Advantages | Examples

Strategic intent refers to a company’s long-term vision for its future. It is a compelling statement that paints a
picture of the company’s targeted future position in the market. This intent should be ambitious, guiding the
organization’s strategic initiatives and providing a sense of purpose to its activities.

Strategic intent is more than a simple business goal; it involves a broad declaration of the overall outcomes
the organization wants to achieve. It sets a challenging and inspiring vision that can empower and motivate
the team to reach beyond their immediate capabilities.

How to develop the strategic intent for the organization?

Developing a strategic intent for an organization involves careful consideration of the organization’s
capabilities, aspirations, market position, and external environment. Here are some steps you could follow:

 Clarify Vision and Mission: Understand the existing vision and mission of the organization. These
elements provide a sense of direction and purpose. The vision is a broader concept that represents
what the organization wants to achieve in the long term, while the mission reflects the organization’s
core purpose and focus.
 Assess Current State: Analyze the organization’s current situation, capabilities, strengths, and
weaknesses. This could be done through tools such as SWOT (Strengths, Weaknesses, Opportunities,
and Threats) analysis or PESTEL (Political, Economic, Sociocultural, Technological, Environmental,
Legal) analysis to consider both internal and external factors.
 Understand the Market: Understand the market trends, competition, customer needs, and potential
opportunities or threats. This understanding can help you identify potential aspirational areas
grounded in market realities.
 Define Objectives: Based on the previous steps, define clear, measurable, and achievable objectives.
These objectives should guide the organization toward its vision.
 Develop: With a clear understanding of the vision, current situation, and objectives, you can now
craft the strategic intent. It should be a concise, compelling statement that provides a long-term
direction for the organization and motivates employees to strive to achieve it.
 Communicate and Implement: Once developed, the organization must communicate effectively to
ensure understanding and alignment. It should be embedded in all strategic initiatives, decision-
making processes, and day-to-day operations.
 Review and Adapt: Regularly review the strategic intent in light of changing market conditions,
organizational capabilities, and other factors. Adapt or revise to keep it relevant and achievable if
necessary.

Advantages of having a strategic intent for the organization

 Strategic intent serves as a guiding light for an organization, aligning all aspects of operations and
decision-making toward a clear, long-term objective. Here are several advantages:

 Direction and Focus: Strategic intent provides a clear direction and focus for the organization,
helping everyone understand what the organization aims to achieve in the long term. This can help
guide decision-making at all levels of the organization and ensure that efforts are not wasted on
activities that do not align.
 Motivation and Engagement: An inspiring strategic intent can motivate and engage employees. It
gives them a sense of purpose and shows them how their work contributes to the bigger picture,
which can increase job satisfaction and productivity.
 Competitive Advantage: By clearly defining where it wants to go, an organization can differentiate
itself from competitors and carve out a unique position in the market. This can be a significant
competitive advantage.
 Resource Allocation: A clear strategic intent helps decide to allocate resources effectively. By
knowing where the organization wants to go, it can prioritize investments in the areas most likely to
contribute.
 Cohesion and Alignment: A well-communicated intent helps ensure that all parts of the organization
work towards the same goal, creating a sense of cohesion and alignment.
 Proactive Approach: Having a clear strategic intent encourages an organization to be proactive rather
than reactive. It enables the organization to anticipate changes in the market or environment and
adjust its strategies accordingly rather than just reacting to changes as they occur.
 Performance Measurement: Strategic intent sets a benchmark for performance. It gives the
organization a clear metric to assess progress and determine if the strategies implemented are
effective or need adjustment.

Examples of strategic intent

Strategic intent is a declaration of the course that an organization intends to take in the long run.
They are usually bold, somewhat broad, and aspirational. Here are some examples:

 Google: “To organize the world’s information and make it universally accessible and useful.” This
strategic intent from Google is not about dominating search engines or ad revenues; instead, it
focuses on the larger goal of information organization and accessibility. How does Google make
money? What is Google’s Business Model?
 Tesla: “To accelerate the advent of sustainable transport by bringing compelling mass-market
electric cars to market as soon as possible.” Tesla’s strategic intent goes beyond just producing
electric cars—promoting sustainable transportation and changing how the world thinks about and
uses energy. How does Tesla make money: Business Model & Supply Chain Analysis
 Microsoft: “To empower every person and every organization on the planet to achieve more.” This
statement emphasizes Microsoft’s dedication to creating technologies that help people and
organizations realize their potential.
 Amazon: “To be Earth’s most customer-centric company, where customers can find and discover
anything they might want to buy online.” This intent sets a broad, aspirational goal that guides
Amazon’s efforts to expand its product range and improve the customer experience continuously.
 Starbucks: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at
a time.” Starbucks’ strategic intent speaks to its community-building goals and individual care
beyond simply selling coffee. Starbucks business model & supply chain analysis.
Core Competencies in Business
A business can choose to be operationally excellent in a number of different ways. Below are common core
competencies found in business:

 Greatest Quality Products. This core competency means the company's products are most durable,
long-lasting, and most reliable. The company will likely have invested in the strongest quality control
measures, technically proficient workers, and high-quality raw materials.
 Most Innovative Technology. This core competency means the company is an industry leader in its
sector. The company will likely have invested heavy amounts of capital into research & development,
holds many patents, and hires experts in respective fields.
 Best Customer Service. This core competency means customers have the greatest experience during
(and after) their purchase. The company will likely have invested in training for staff, large numbers
of customer service representatives, and processes to manage exceptions or issues as they arise.
 Largest Buying Power. This core competency leverages a company's economy of scale. This company
will likely have invested in mergers or acquisitions and have built up strong relationships with
vendors to gain favorable pricing or service.
 Strongest Company Culture. This core competency promotes the internal atmosphere of the
business. The company aims to attract the best talent by investing heavily in employee recognition,
development, or collaborative, fun events.
 Fastest Production or Delivery. This core competency means the company is able to make or ship
items the fastest. The company will likely have invested in connected software systems as well as
production processes and distribution relationships.
 Lowest Cost Provider. This core competency means the company charges the lowest price among
comparable goods. The company will likely have invested in the most efficient processes the reduce
labor or material input.
 Highest Degree of Flexibility. This core competency allows the company to quickly pivot in response
to business opportunities or challenges. The company will likely have invested in cross-training
across employees or nimble software solutions.

Innovative Product Development

Strong Branding and Marketing
Operational Excellence
Technological Leadership
Talent Management and Organizational Culture
Customer Focus
Strategic Partnerships and Alliances
Flexibility and Adaptability
Sustainable Practices
Global Reach and International Expansion