Strategic Intent can be understood as the philosophical base of the strategic management process. It implies the purpose, that an organization endeavours to achieve. It is a statement that provides a perspective of the means, which will lead the organization, to reach its vision in the long run.
Strategic intent gives an idea of what the organization desires to attain in future. It indicates the long-term market position, that the organization desires to create or occupy and the opportunity for exploring new possibilities.
Strategic Intent Hierarchy
Vision – Vision implies the blueprint of the company’s future position. It describes where the organization wants to land. It is the dream of the business and an inspiration, base for the planning process. It depicts the company’s aspirations for the business and provides a peep of what the organization would like to become in future. Every single component of the organization is required to follow its vision.
Mission – Mission delineates the firm’s business, its goals and ways to reach the goals. It explains the reason for the existence of the business. It is designed to help potential shareholders and investors understand the purpose of the company. A mission statement helps to identify, ‘what business the company undertakes.’ It defines the present capabilities, activities, customer focus and business makeup.
Business Definition – It seeks to explain the business undertaken by the firm, concerning the customer needs, target audience, and alternative technologies. With the help of business definition, one can ascertain strategic business choices. Corporate restructuring also depends upon the business definition.
Business Model – The business model, as the name implies, is a strategy for the effective operation of the business, ascertaining sources of income, desired customer base, and financing details. Rival firms, operating in the same industry, rely on a different business model due to their strategic choice.
Goals and Objectives – These are the base of measurement. Goals are the end results that the organization attempts to achieve. On the other hand, objectives are time-based measurable actions, which help in the accomplishment of goals. These are the end results which are to be attained with the help of an overall plan, over a particular period.
The vision, mission, business definition, and business model explain the philosophy of business but the goals and objectives are established to achieve them.
Strategic Intent is extremely important for the future growth and success of the enterprise, irrespective of its size and nature.
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