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Communications Strategy 111

and team contributions; sustaining enthusiasm by providing new operational definitions as
circumstances change; and using intent consistently to guide resource allocations. 22

Thus on account of the outcomes of the strategic analysis phase, i.e. the current posi-
tion of the organization within its environment,strategic intent sets a general direction
for the organization and the change or consolidation of that position which it aims for.
This aspect of strategic management can be conceived of in the following ways.

1. Identifying bases of strategic choice. There are a number of fundamental issues,
which need to be addressed in generating and considering strategic options open to
an organization. Some of these bases of strategic choice arise from an understanding
of stakeholder expectations and influence, which may already be reflected in mission
and vision statements that provide overall guidance about the nature or aspirations of
the organization; for example, in terms of product, market or geographical scope or
matters as fundamental as ownership of the organization. There are also bases of
strategic choice in terms of how the organization seeks to compete at the business
unit level.This requires an identification of bases of competitive advantage arising from
an understanding of both markets and customers, and special competencies that the
organization has to offer which contribute to its generic competitive strategy: low cost
or differentiation. A low cost strategy is a market strategy in which products are
produced and sold at the lowest cost, allowing high returns even when competition
is intense. Differentiation involves organizations developing a product or service that
is unique or superior in some way. Products with this quality, whether in terms of
features, image or design, often have higher than average prices, and the organization
using this strategy thus seeks to penetrate the market on the basis of differential
features rather than price alone. Another important basis of strategic choice is the
identity of the organization that runs through its culture and operations. Identity, as
Chapter 3 suggested, sets boundaries to the strategic options open to the organization
in terms of how people within the organization see themselves and the company
they work for, and also predetermines how the company should be profiled and
positioned with stakeholders and the markets in its environment.

2. Generation of strategic options. There may be several possible courses of action
that an organization could follow.These courses of action emanate from the bases of
strategic choice as identified above, and include options concerning which stake-
holders and markets to address and target, and what the organization wants to
achieve with them.In the 1970s and 1980s,Shell,for example,was a respected multi-
national in the petroleum industry steeped in a technological and engineering ethos.
By the 1990s changing market conditions and public scepticism posed the organiza-
tion other choices of strategic direction.The company had to ask itself what the basis
of its business and success was: profitability or public legitimacy, or both? And
whether the existing culture and competencies of Shell staff would offer sufficient
latitude for introducing and supporting a new corporate identity and a new way of
running and promoting the business? Often such questions need to be asked in order
to identify the strategic options open to an organization. Besides identifying strate-
gic options at the corporate and business unit level, in terms of carrying out their
missions and implementing new market strategies,organizations also need to consider