The article entitled “Strategic intent” discusses the way to ensure a company’s competitiveness and effectiveness through reconsideration of its strategy. The article claims that while modern competitive analysis focuses on the existing resources, there is no indication in the resource base as to the strategy of the company and its vision which are the key elements for success. To become a leader in its industry, a company must elaborate strategic intent which is seen as focus on winning that ensures stability over time. The article hypothesizes that strategic intent is the key element of successful management, which, together with corporate challenges and competitive innovation, ensures the competitive advantage of the company.
Unlike many companies that consider shareholder wealth a measure of success, the advocates of strategic intent strategy set targets that presuppose personal effort and commitment in terms of global market leadership. Indeed, practice shows that the degree of personal involvement in the business largely determines its success. While strategic intent lies outside of planning, companies should embrace it to stay competitive as it provides a large motivational leverage to stay afloat and succeed. Strategic intent is clear about aims but leaves room for improvisation as far as means are concerned, placing emphasis on creativity which becomes an important element of a company’s strategy. Indeed, in businesses that run along once established lines, the potential for innovation is small which significantly reduces their competitive advantages. The first learning outcome points to the necessity of personal commitment and vision in the long run, and room for improvisation in means and ways to achieve the companies’ far-reaching goals.
Since strategic intent creates misfit between resources and ambitions, to mend the bridges new competitive advantages should be continuously adopted through corporate challenges. Effective challenges assume the understanding of implications for employees’ jobs and motivation that lies behind each employee’s work. The companies, where employees are highly motivated tend to show better results in terms of competitiveness than those companies where there in no personal involvement in the business. Managers and workers should be ready to embrace competitiveness through reciprocal responsibility. To enhance employees’ motivation, a focus on acquisition of new skills can be made enhancing employees’ interest in the process. Thus, the second learning outcome points to the necessity of boosting employee motivation through setting corporate challenges.
The third element of success is the competitive advantage which does not focus on the current state of affairs but considers the company’s ability to innovate relying on its human potential. That is why, equal stakes for managers and employees in the success of the business are important. Creating new skills and improving existing ones, companies create future advantages instrumental for ultimate success of the company. To contain risks, numerous layers of advantages should be created. These layers may include reduced costs, recognizable brands and superior quality of goods or a combination of these elements to enhance a company’s competitiveness. Competitive innovation presupposes strategy hierarchy within which competitive advantages are ranged according to the current needs of the company. Innovation allows managers to find ‘loose bricks’ to enter the market migrating across industries. Thus, the third learning outcome points to the necessity of creating competitive advantages in many areas to provide easy access to the market.
The article is helpful for the future manager as it outlines the key elements of business instrumental for effective management of the company throughout a company’s life. Thus, strategic intent is responsible for resource allocation in the long term; corporate challenges focus the company’s attempts in the medium term, and competitive innovation helps to ensure competitiveness in the short term. Embracing all three elements, future managers may ensure the company’s sustainable growth and competitiveness in years to come.
References
Hamel, G., & Prahalad, C. K. (2010). Strategic intent. Harvard Business Press.