1. Strategic Intent and Mission.
October 10, 2007

2. Strategic Intent and Mission
Intent: How firm would like to use
Resources
Capabilities
Core competencies
Mission: Determine the firm’s external focus on
Products
Markets

3. Strategic Intent and Mission
The primary guides to strategic management are formal statements of strategic intent and mission.
Strategic intent is internally focused, defining how the firm uses its resources, capabilities, and core competencies.
Strategic mission is externally focused, defining what will be to produced and marketed, utilizing its internal core competencies.

4. Strategy Formulation
The design of an approach to achieve the firm’s mission.
Takes place at:
Corporate-Level
Business-Level

5. Corporate-Level Strategy
The corporation’s overall plan concerning the:
Number of businesses the corporation holds.
Variety of markets or industries it serves.
Distribution of resources among those businesses.
This diversification strategy may be analyzed in terms of:
Portfolio mix
Type of diversification
Process of diversification

6. Portfolio Analysis
The basic idea is to classify the businesses of a diversified company within a single framework.
Two of the most widely applied include:
The McKinsey-General Electric Portfolio Analysis Matrix
The Boston Consulting Group’s Growth Share Matrix

7. The McKinsey-General Electric Portfolio Analysis Matrix
Business-Unit Position
Low
Medium
High 1)
Harvest 2) 3) 4) 5)
Hold 6) 7) 8) 9)
Build
Low
Industry
Attractiveness
Medium
High

8. The Boston Consulting Group’s Growth Share Matrix
Relative Market Share
Earnings: high stable, growing
Cash Flow: neutral
Strategy: invest for growth
STAR
Earnings: low, unstable, growing
Cash Flow: negative
Strategy: analyze to determine whether business can be grown into a star, or will degenerate into a dog ?
Earnings: high, stable
Cash Flow: high stable Strategy: milk
COW
Earnings: low, unstable
Cash Flow: neutral or negative
Strategy: divest
DOG
Annual Real
Rate of Market
Growth

9. Diversification Strategy
Type of Diversification
Concentration strategy
Vertical integration strategy
Concentric diversification strategy
Conglomerate diversification
Process of Diversification
Acquisition and restructuring strategies
Acquisition
Merger
International strategy

10. Business-Level Strategy
Deals with how to compete in each business area or market segment.
Firms have two basic choices:
Cost leadership strategy
Differentiation strategy

11. Strategy Implementation
Organization Controls
Corporate Entrepreneurship and Innovation
Human Resource Strategies
Strategic Leadership
Cooperative Strategies 3

12. Strategic Outcomes
Company leaders should periodically assess whether the outcomes meet expectations.
A firm must first and foremost cater to the desires of its primary stakeholders.
The firm should also consider the desires of other stakeholders affected by its performance.
Some of the standard measures of strategic success includes:
Profits
Growth of sales/market share
Growth of corporate assets
Reduced competitive threats
Innovations