The purpose of existence for a company is called strategic intent. It refers to what a company intends to do and why it intends to do so. These what and why questions must necessarily be defined by the organization.
Keeping the reason for its intention (answer to why) as focus, strategic intent comprises of the following:
- Goals and Objectives
Vision refers to where the company sees itself as being in the future.
- The markets that need to be followed.
- The kind of customer focus and future technology the company is interested in.
- The type of culture, structure, etc. in the company the management intends to build.
It is a description of something (an organization, corporate culture, business, technology, and act) in the future.
Good vision must
- Aim for perfection.
- Shed light on the company’s direction.
- Motivate the company’s members to be committed and inspire them.
- Depict how unique a company is and highlight its distinctive capabilities.
- Be relevant to the organization and suit the times.
- Be well written and easy to understand for people who accomplish it.
Example – LinkedIn Vision
To create economic opportunity for every member of the global workforce.
Example – Tesla’s 2030 Vision
- Elon Musk, the CEO of Tesla, says that it aims to produce 20 million electric vehicles annually before 2030.
- This is 50 times greater than what Tesla manufactured in 2019.
- According to Musk, by 2027, the electric vehicle market will produce more than 30 million vehicles every year.
- The ongoing business activities of a company are its mission.
- It refers to who the company is and what its business is.
The mission consists of the following ongoing factors:
- The services and products it offers.
- The needs it caters to.
- It’s the business and technological competency.
For a mission statement to be clear, it must describe a company’s preferences and values. It is the purpose or reason for an organization’s existence.
A mission statement must be:
Mission – Examples
Goals and Objectives
Converting a company’s mission and strategic vision into particular performance targets is referred to as goals and objectives.
- Track performance by creating standards.
- Motivate firms to be result-centric.
- Prevent organizations from self-approving themselves.
- The results an organization focuses on achieving in the future, are symbolized by goals.
- The ways of accomplishing goals are explained by objectives.
- Objectives are detailed and exact, whereas goals are generic.
1. EFFECTIVE GOALS
- Are precise.
- Describe the variety, the time available, and the quantity of work to be finished.
- Are practical but challenging at the same time.
- Are easily accepted by people
- Determine the priority of a company’s actions.
- Identify the important attributes of the jobs that have to be performed.
- Particular and definite
- Connected to a particular time frame
- Quantifiable and manageable.
- Set within limitations
Example – Apple’s “Strategic Intent” for Chip Independence
In 2019, Apple bought a huge portion of the modem business by Intel Corp. for $1billion. This was a major step taken by Apple in order to supply its own smartphone chips. Devices like iPhones are connected to wireless data networks with the help of modem chips. External suppliers were relied on by Apple for the same.
This deal will help Apple attain its goal of manufacturing its own modem chip. Modem chips are already self-supplied by Apple’s biggest rivals Huawei and Samsung Electronics Co Ltd. Intel will still be able to generate modems for non-smartphone applications like industrial equipment, self-driving cars, and PCs after the deal.
Apple Chief Executive Tim Cook has also long said the company wants to control its own technological fate, what analysts have called the “Cook Doctrine.”We believe that we need to own and control the primary technologies behind the products that we make,” Tim Cook told investors back in 2009.
Example – Nike 2030 and 2050 Intent
“Issues as big and complex as climate change call for us to collaborate across our industry and beyond,” Nike’s chief sustainability officer Noel Kinder said.
“That’s why we’re committed to doing just that in partnership with UN Climate Change – teaming up with peers and partners across sectors to do what’s right for our planet and for the future of the sport.”
The UN climate change and global retailers, suppliers, and brands were joined by Nike with the aim of speeding up the industry’s most assertive climate target. The target aims to decrease the aggregate greenhouse gas emissions by 30% by 2030. The target also envisions that the emissions will be net-zero by 2050.
RE100 initiative was also joined by Nike to source 100% renewable energy. By 2018, In North America, Nike was powered by 100% renewables. It was already halfway through fulfilling its undertaking to source 100% renewable energy throughout all its global facilities. They aim to fulfill their commitment by 2025.
Example – Amazon’s “Shipment Zero” Vision
Amazon aims to make 50% of its shipments by 2030, net-zero carbon, with the help of its Shipment Zero vision. They intend to focus on recycled materials, renewable energy initiatives, investments in electrification, and sustainable process improvements to attain net-zero shipments.
It is also on its way to use 100% renewable energy to power its operations by 2025 so that by 2040, it can reach net-zero carbon. 42% of renewable energy was already reached in 2019 by Amazon, across its global business lines.