1.

Explain the concepts of strategic intent, stretch, leverage, and fit

Strategic Intent is defined as readily grasped declaration of the course that the
management of a business plans on taking the company in over some future time
frame. The strategic intent of a business needs to be easily understood by every
member of the firm so that all staff can be working toward a consistent overall goal.

Strategic intent is an obsession with an organization: an obsession by having

ambitions that may even be out of proportion to their resources and capabilities.
This obsession is to win at all levels of the organization while sustaining that
obsession in the quest for global leadership.
Stretch is "a misfit between resources and aspirations"
Leverage refers to concentrating, accumulating, complementing, conserving, and
recovering resources in such a manner that inadequate resource base is
stretched to meet the aspirations that an organization dares to have.
Fit means positioning the firm by matching its organizational resources to its
environment.

To achieve Strategic Intent you need to Stretch. As of today there is a misfit between
resources and aspirations. So instead of looking at resources, you will look at
resourcefulness. To achieve you will stretch and make innovative use of your
resources.
This leads to leveraging your resources. Leverage refers to concentrating your
resources to your strategic intent, accumulating learning, experiences and
competencies, in a manner that a scarce resource base can be stretched to meet the
aspirations that an organizational resources to its environment.
The strategic fit is the traditional way of looking at strategy. Using techniques such as
SWOT analysis, which are used to assess organizational capabilities and environmental
opportunities, Strategy is taken as a compromise between what the environment has
got to offer in terms of opportunities and the counteroffer that the organization makes in
the form of its capabilities.
Under fit, the strategic intent is conservative and seems to be more realistic, but you
may not be aware of the potential; under stretch and leverage it could be improbable,
even idealistic, but then you look at something far beyond present possibilities and look
at the potential possibilities.

2.Describe and exemplify the concept of vision

A Strategic vision is a road map of a companys future providing specifics about
technology and customer focus, the geographic and product markets to be pursued, the
capabilities it plans to develop, and the kind of company that management is trying to
create.
A strategic vision delineates managements aspirations for the business, providing a
panoramic view of the where we are going and a convincing rationale for why this
makes good business sense for the company. A strategic vision thus points an
organization in a particular direction, charts a strategic path for it to follow in preparing
for the future, and molds organizational identity. A clearly articulated strategic vision
communicates managements aspirations to stakeholders and helps steer the energies
of company personnel in a common direction.

An example of this is Henry Fords vision of a car in every garage had power because it
captured the imagination of others, aided internal efforts to mobilize the Ford Motor
Companys resources, and served as a reference point for gauging the merits of the
companys strategic actions.

3.Describe and exemplify the concept of mission

Mission helps the company in specifying organizational purposes and the translation of
these purposes into goals in such a way that cost, time, and performance parameters
can be assessed and controlled. A companys Mission statement is typically focused on
its present business scope who we are and what we do; mission statements broadly
describe an organizations present capabilities, customer focus, activities, and business
makeup.

Examples:
"To bring inspiration and innovation to every athlete in the world." from Nike
"Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and
decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference." From the Coca-Cola corporation

Our mission: to inspire and nurture the human spirit one person, one cup and one
neighborhood at a time." From Starbucks

4. Explain the three dimensions of business definition

The Three Dimensional Business Definition framework from Harvard Professor Derek F.
Abell is a model that can be used for defining the business of a company.
According to Abell the strategic planning process is the starting principle for any given
organization, and this process is defined in the mission statement.
A mission statement gives direction to the organization and provides the basis for
further elaboration of strategies. Three questions play an important part in the
formulation of the mission statement:
Who are the customers of the organization?
How can the organization meet its customer needs?
What techniques does the organization use to meet the customer needs?
Derek Abell summarized the three questions in three axes: a horizontal axis on which
he positioned the customers/ user groups, a vertical axis with buying needs and an
inclined axis with the applied technologies. Therefore, an overall summary of
the business model is created in the Abell model.

Customer needs
In the Abell model all customer
identified and listed. These
determined on the basis of the
link is made to customer
benefits.

needs that are relevant to the company are

customer needs are
product as a result of which a

Example: A software
manufacturer responds to
the needs of the
customer by only
delivering packages that can be installed by
laypeople very
easily. In addition, they offer virus free software and the
possibility to
clean up the software on a monthly basis. They also provide
clear
manuals and a telephone helpline.
Technologies
The term technologies should be interpreted
broadly. In addition to technologies that are used to create a product, there are also
technologies that are used to put a product on the market. Which marketing campaign
must be used and in which way is the market research on a product carried out?

Example: A software manufacturer uses the latest technologies in his software products.
In addition, the manufacturer offers support to customers by means of a 24-hour
helpdesk and he guarantees the best possible information provision.
Customer groups / Buyers
Marketing is all about buyers. Without buyers there would not be a market. Each
organization wants to get down to the core of the buyers and therefore customer
segmentation is very important. By having a thorough knowledge of the various target
groups, an organization can make targeted product offers.
Example: A software manufacturer delivers products to B2B and B2C customers. The
manufacturer reaches these groups by deploying their own Account Managers,
distributive trade, retail trade and trade associations.

5. Evaluate quality of vision, mission statements, and business definitions

Vision is as a mental perception of the kind of environment an individual, or an

organization, aspires to create within a broad time horizon and the underlying conditions
for the actualization of this perception"

Mission is the essential purpose of the organization, concerning particularly why it is in

existence, the nature of the business it is in, and the customers it seeks to serve and
satisfy
Mission should contain elements of long-term strategy as well as desired outcomes they
often basic values and the philosophy of the organizations that is perceived by the
senior managers at the senior level who write them. A good mission statement should

be of precise, clear, feasible, distinctive and motivating. It should indicate major

components of strategy.

Business definition is defined by what needs it is trying to satisfy, by which customer

groups it is targeting and by the technologies and competencies it uses and activities it
performs

6. Describe business model and their relationship with strategy

The term "business strategy" describes the methods a business uses achieve its
mission and objectives. A business' mission encompasses its overall purpose, core
values and long-term goals. A grocery store might have the mission of making profit
while providing the best food to customers, minimizing its impact on the environment
and promoting strength in the local economy. The company's strategy might involve
buying products from local food producers, encouraging customers to bring their own
grocery bags, advertising in local newspapers and buying recycled product packaging
materials. A business strategy includes how it deals with the opportunities and threats it
faces.
A company's business model describes the basic means by which it creates
value, delivers value to consumers and collects revenue from customers to make a
profit. Business models can vary greatly from one company to another. A local grocery
store's business model might involve buying food at wholesale prices and selling it to
end consumers at a higher price to make profit. A website might have a business model
based on providing video content to customers and generating revenue through
advertisements placed on the site.
A company's business model is a part of its business' overall strategy: It is the
nuts and bolts behind how the company plans to achieve its goals, such as making a
profit. A company can change its business model over time as a part of its profit-making
strategy. For example, if website does not make enough revenue from advertisements
to make profit, managers might decide implement a new business model, such as
selling T-shirts and other goods though an online store, as a strategy to boost profit.

7. Describe the role and characteristics of objectives

Objectives are important to strategic planning because they turn the mission and vision
into specific measurable targets. Goals and objectives are concrete and help translate
the mission and vision into reality.
Goals are the ends toward which a program or problem solution is directed.
Goals are outcome statements to guide implementation of the strategy (i.e., the tactics
of what is planned to be done). While goals tend to be general or broad and ambitious,
they also must be clear and realistic in order to clarify the team's direction and gain
support of other stakeholders.
Objectives are more detailed than goals and explain how goals will be
accomplished. Objectives detail the activities that must be completed to achieve the
goal.
ROLE OF OBJECTIVES:

Objectives define the organizations relationship with its environment

Objectives help an organization pursue its vision and mission
Objectives provide the basis for strategic decision-making
Objectives provide the standards for performance appraisal

CHARACTERISTICS OF OBJECTIVES

Objectives should be understandable

Objectives should be concrete and specific
Objectives should be related to a time frame
Objectives should be measurable and controllable
Objectives should be challenging
Different objectives should correlate with each other
Objectives should be set within constraints

The acronym, SMART, is often used to remember how to develop good goals and
objectives.
S - Specific
M - Measurable
A - Attainable
R Relevant to Mission and Vision
T Time-oriented

Also, Mark Graham Brown lists several important characteristics of objectives:

1. Fewer are better. Concentrate on measuring the vital few key variables rather
than the trivial many.
2. Measures should be linked to the factors needed for successkey business
drivers.
3. Measures should be a mix of past, present, and future to ensure the organization
is concerned with all three perspectives.
4. Measures should be based around the needs of customers, shareholders, and
other key stakeholders.
5. Measures should start at the top and flow down to all levels of employees in the
organization.
6. Multiple indices can be combined into a single index to give a better overall
assessment of performance.
7. Measures should be changed or at least adjusted as the environment and your
strategy changes.
8. Measures need to have targets or objectives established that are based on
research rather than arbitrary numbers (Brown, 1996).

8. Explain the process of objective setting

The objective setting process facilitates the implementation of an enterprises

strategy.
A continual objective setting process integrates the breaking down of overall
enterprise objectives to departmental level with the planning of tasks to be agreed with
individual employees, checking these tasks are fulfilled in a review and the final
appraisal, and the resulting feedback cycles.

An objective setting cycle encompasses the following phases:

Planning
In a planning consultation, the necessary qualifications and competencies are
first identified for an employee and then concrete objectives and required performance
levels are agreed. For example, sales targets could be defined and the employee could
agree to take on specific tasks in a project, and so on. These aspects can be defined by
the manager, by the employee or both. The employees personal training and
development requirements are discussed and entered in the objective setting
agreement.
Review
During the review, the objectives agreed with the employee during the planning
phase are checked and adjusted to reflect the current situation. The manager and
employee discuss the possible need for support, establish whether the objectives
defined in the planning phase are still relevant, and add further objectives or decide to

delete obsolete ones. Furthermore, the manager can make comparisons between the
objectives set previously and the employees current performance.

Appraisal
During the appraisal, the manager and employee discuss the extent to which the
employee has fulfilled the set objectives. They check and assess the employees overall
performance and the implementation of concrete set objectives. Any further training
requirements or an overfulfillment of the objectives are identified in the different areas.
The appraisal document is completed when the manager and employee agree on an
valuation. As soon as the appraisal document is saved in the system
as Completed or Approved, the employees compensation can be adjusted
automatically and the employees qualifications profile can be updated.

9. Distinguish between well-formulated and badly-stated objectives

The very first step in all projects: business, home, or education, is to define goals
and objectives. This step defines the projects outcome and the steps required to
achieve that outcome. People, including project managers, do not spend sufficient time
on this step or complete it incorrectly thereby ensuring an unsuccessful project
completion.
Poorly defined goals and objectives, or goals without objectives, pushes a project
into overruns, territory battles, personality clashes, missed milestones, and unhappy
clients.
Goals and objectives must be clear statements of purpose. Each with its own
purpose that drives the end result of the project. Goals and objectives MUST be
measurable.

10. Discuss the role of critical success factors in setting objectives

Critical Success Factors, also known as Key Results Areas, are the areas of your
business or project that are absolutely essential to its success. By identifying and
communicating these CSFs, you can help ensure your business or project is wellfocused and avoid wasting effort and resources on less important areas. By making
CSFs explicit and communicating them with everyone involved, you can help keep the
business and project on track towards common aims and goals.