VISION, MISSION,

BUSINESS MODEL

MODULE 2
WHAT IS A STRATEGIC INTENT
 Strategic intent is the term used to describe the aspirational plans, overarching purpose or

intended direction of travel needed to reach an organisational vision.

 A vision for an organization's future. This is a far target that serves as an inspiration and

long term direction. For example, an energy company with a vision of serving global energy
needs with zero environmental impact
Strategic Intent
Definition: Strategic Intent can be understood as the philosophical base of the
strategic management process. It implies the purpose, which an organization
endeavor of achieving. It is a statement, that provides a perspective of the means,
which will lead the organization, reach the vision in the long run.

Strategic intent gives an idea of what the organization desires to attain in future. It
answers the question what the organization strives or stands for? It indicates the
long-term market position, which the organization desires to create or occupy and
the opportunity for exploring new possibilities.
STRATEGIC PROCESS
Strategic Intent Hierarchy
Vision: To create the most compelling car company of the 21st century by

driving the world’s transition to electric vehicles.

Mission: To accelerate the world’s transition to sustainable energy.

Vision: To be Earth’s most customer-centric
company, where customers can find and discover
anything they might want to buy online.

Mission: We strive to offer our customers the

lowest possible prices, the best available selection,
and the utmost convenience.
Vision: To create economic opportunity for every
member of the global workforce.

Mission: To connect the world’s professionals to

make them more productive and successful.
Vision: Belong everywhere.

Mission: To create a world where anyone can belong

anywhere and we are focused on creating an end-to-end travel
platform that will handle every part of your trip.
Vision: Smarter transportation with fewer cars and
greater access. Transportation that’s safer,
cheaper, and more reliable; transportation that
creates more job opportunities and higher
incomes for drivers.

Mission: We reimagine the way the world moves

for the better.
1.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 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.
2.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.
1.Business Definition: It seeks to explain the business undertaken by the firm, with respect to
customer needs, target audience, and alternative technologies. With the help of business
definition, one can ascertain the strategic business choices. The corporate restructuring also
depends upon the business definition.
2.Business Model: 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 relies on the different business model due to their
strategic choice.
3.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 the particular period.
IMPORTANCE OF VISION AND MISSION STATEMENT IN AN ORGANIZATION

Both the mission and vision statement play an important role in the organization:
 The vision and mission statements define the purpose of the organization and instill a sense of belonging and
identity to the employees. This motivates them to work harder in order to achieve success. It gives the
right mindset to grow business.
 The mission statement provides the direction that is to be followed by the organization while the vision
statement provides the goal (or the destination) to be reached by following the direction.
 It helps to properly align the resources of an organization towards achieving a successful future.
 The mission statement provides the organization with a clear and effective guide for making decisions, while
the vision statement ensures that all the decisions made are properly aligned with what the organization hopes
to achieve
 The vision and mission statements provide a focal point that helps to align everyone with the organization,
thus ensuring that everyone is working towards a single purpose. This helps to increase efficiency and
productivity in the organization.
A quality vision statement has the following characteristics:

•Clear

•Concise

•Forward-thinking

•Broad

•Abstract

•Aligned with the nonprofit’s mission, core values, and culture

1.Meta (Facebook) — To bring the metaverse to life and help people connect, find communities, and
grow businesses.
2.Goodwill — Our vision is to transform lives and communities through the power of work.
3.Ford — To become the world’s most trusted company, designing smart vehicles for a smart world.
4.IBM — To be the world’s most successful and important information technology company.
5.Google — To provide access to the world’s information in one click.
6.IKEA — To create a better everyday life for the many people.
7.LinkedIn — To create economic opportunity for every member of the global workforce.
8.Sony — Using our unlimited passion for technology, content, and services to deliver groundbreaking
new excitement and entertainment, as only Sony can.
9.Southwest Airlines — To be the world’s most loved, most efficient, and most profitable airline.
10.Coca-Cola — Our vision is to craft the brands and choice of drinks that people love, refresh them in
body & spirit. And done in ways that create a more sustainable business and better shared future that
makes a difference in people’s lives, communities, and our planet.
 WHAT IS A BUSINESS
 Business is an organization comprising people who strive together to achieve common objectives and goals.

It is important for a business organization to have a vision that implies what it intends to achieve in the future
and values that represent the organization’s integrity.

 Business is an organization comprising people who strive together to achieve common objectives and goals.

It is important for a business organization to have a vision that implies what it intends to achieve in the
future and values that represent the organization’s integrity.

 A business organization is a commercial, industrial, or mercantile enterprise, and comprises the people who

constitute it. Business is a legally-recognized organization which provides goods, services, or both to the
consumers.
TYPES OF BUSINESS
Types Of Business

Businesses can be classified into but are not limited to 4 types. These are –

Manufacturing

Manufacturing businesses are the producers who develop the product and sell it either directly to the customer or the

middlemen to conduct sales. Examples of manufacturing businesses are steel factories, plastic factories, etc.

Service

This type of business deals in selling intangible goods to the consumers. Unlike tangible goods, services cannot be stored

or separated from the provider.

Service firms offer professional services, expertise, commission-based promotions, etc. Examples include salons,

schools, consultancy etc.

Merchandising
Merchandising is a middlemen business strategy where the business buys products from a manufacturer,
wholesaler, or other partners, and sells the same at the retail price. It is usually known as a ‘buy and sell’
business as they make profits by selling the products at a price higher than their cost price.
Examples of a merchandising business are grocery stores, supermarkets, distributors etc.

Hybrid
Hybrid businesses have the characteristics of two or more types of businesses explained above. For example, a
restaurant develops its own dishes (manufacturing), sells the products like cold drinks which are manufactured
by other businesses (merchandising), and provide service to the customers (service).
WHAT IS A BUSINESS PLAN
 A business plan is a document that defines in detail a company's objectives

and how it plans to achieve its goals. A business plan lays out a written road
map for the firm from marketing, financial, and operational standpoints. Both
startups and established companies use business plans.
WHAT IS A BUSINESS MODEL?
 The term business model refers to a company's plan for making a profit. It identifies the
products or services the business plans to sell, its identified target market, and any anticipated
expenses.
 Business models are important for both new and established businesses. They help new,
developing companies attract investment, recruit talent, and motivate management and staff.
 Established businesses should regularly update their business model or they'll fail to anticipate
trends and challenges ahead.
 Business models also help investors evaluate companies that interest them and employees
understand the future of a company they may aspire to join.
 Every business or companies makes a plan for generating profit.
 They create a model for identifying products and services to sell, the market
they want to target and also take into account anticipated expenses. This is
known as business models.
 Even if the business is already established or even if it is a new business,
plan needs to be made.
 Businesses need to regularly update their plans and strategy as they need to
take into accounts the challenges and trends for the future models.
IMPORTANCE OF BUSINESS MODELS

 The business model helps to target the customer base for the company. It helps in making
marketing strategies, projection of revenues and expenses taking into account the type of
Business models and clienteles.
 Every investor needs to review the business model in order to get
knowledge about the company’s competitive edge. Understanding the business model helps
the investors to have a better sense of financial data.
 Evaluating the business model helps the investors to get the overall view about the company’s
products, its business strategies and future prospects.
EXAMPLE OF A BUSINESS MODEL
1. Business -To- Business Models (B2B):

When the dealings or the transactions take place between two companies or the business then this type of business

model is known as business to business models.

It has good market predictability and more market stability. Since under B2B sale is made in bulk amount this

model leads to lower cost for the businesses.

The best example of this type of business model in India is IndiaMart InterMesh which is a wholesale B2B

marketplace. It offers millions of products to its customers which includes consumer electronics, machinery,

apparel and many more.

2. Business -To-Consumer Models (B2C):
Business-2-consumer business model is a model that refers to businesses that sell their services or the products
directly to the consumer who are the end users of the products or services.
There is an ongoing demand for the products as it provides the essential items. This thus eliminates the risk of
fluctuation in demand and helps in maintaining consistency in the business. Since direct contact is there with the
customer’s so information is shared with them directly and easily.
Customers are given products at a low price compared to its competitors for the business to run smoothly.
Example of business to consumer model is Avenue Supermart which provides goods directly to its customers.
3. Subscription Based Models:
Any application based businesses or software companies have subscription based business models.They offer their
product as a onetime purchase, in return company earns monthly or annual revenues.
This type of business model allows the company to earn regular income by giving the client the opportunity to pay
for the cost of the purchase in 12 equal payments rather asking them to pay the wholesome amount at one go.
One of the leading examples is Infoedge for this type of business model.
4. On-DEMAND BUSINESS MODEL
It is the most recent form of model which is made out on the need by answering immediately. Under
this type of business model is prepared in such a way where all the questions will be answered by
just a click of a button in seconds.
It is very much convenient and easy for customers as even before customers have visited the
particular city they get their hotels or places booked.
One of the example is make my trip which allows the customers to plan the holidays and make the
bookings in advance.
Advantages of Business Models

•A good business models gives the company a competitive edge in the industry.

•A strong business model provides the company good reputation in the market place encouraging the investors to remain invested in the

company.

•Making the business model strong leads to an ongoing business profit leading to increase in cash reserve and new investments.

•Proven business model brings a financial stability in the organization.

Business models have disadvantages as well.

Disadvantages of Business Model:

•Once a business model is created, then it restricts to implement new ideas for the product.

•Creating a business model is time consuming as lot of factors needs to be considered.

•There might be a chance that business model may turn out to be inaccurate.

Apart from the disadvantages, business model is mandatory to be prepared before starting of a new project.
 A business model is a company's core strategy for profitably doing business.

 Models generally include information like products or services the business plans to sell, target markets,

and any anticipated expenses.

 There are dozens of types of business models including retailers, manufacturers, fee-for-service, or

freemium providers.

 The two levers of a business model are pricing and costs.

 When evaluating a business model as an investor, consider whether the product being offer matches a

true need in the market.

What are the key components of a business model?

In its simplest form, a business model can be broken down into three parts:

1.Everything it takes to make something:

Design, raw materials, manufacturing, labor, and so on.

2.Everything it takes to sell that thing:

Marketing, distribution, delivering a service, and processing the sale.

3.How and what the customer pays:

Pricing strategy, payment methods, payment timing, and so on.

 Pay royalties to some large organization for the right to sell
AFFINITY CLUB •MBNA
your product exclusively to their customers.

Bring together buyers and sellers, charging a fee per •Century 21

BROKERAGE
transaction to one or another party. •Orbitz

•Fast-food value meals

BUNDLING Package related goods and services together.
•iPod/iTunes

•Sprint
CELL PHONE Charge different rates for discrete levels of a service.
•Better Place

Get a large group of people to contribute content for free in •Wikipedia

CROWDSOURCING
exchange for access to other people’s content. •YouTube

•NetJets
FRACTIONALIZATION Sell partial use of something.
•Time-shares
FREEMIUM Offer basic services for free, charge for premium service. •LinkedIn

•Cars
LEASING Rent, rather than sell, high-margin, high-priced products.
•MachineryLink

NEGATIVE OPERATING CYCLE Lower prices by receiving payment before delivering the offering. •Amazon

PAY-AS-YOU-GO Charge for actual, metered usage. •Electric companies

Offer the high-margin razor below cost to increase volume sales of the low-
RAZOR/BLADES •Printers and ink
margin razor blades.

SUBSCRIPTION Charge a subscription fee to gain access to a service. •Netflix

Grant members access to a network, charging both membership fees and

USER COMMUNITIES •Angie’s List
advertising.
BUSINESS DEFINITIONS
 PESTLE ANALYSIS

 SCENARIO PLANNING

 FIVE FORCES MODEL

 MARKET SEGMENTATION

 DIRECTIONAL POLICY MATRIX

 COMPETITOR ANALYSIS

 CRITICAL SUCCESS FACTOR ANALYSIS

 SWOT ANALYSIS
REFERENCES
 https://resources.clearvoice.com/blog/difference-between-mission-vision-statement-examples/

 https://www.youtube.com/watch?v=x_QkqtgvNQM