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CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning

A firm's annual plan says it will 'become the most trusted brand in its sector'. Management then states that it will raise market share from 12% to 18% within three years. Which statement is correct?

The first statement is a vision-type statement because it is aspirational and unquantified, while the second is a measurable strategic objective because it has a specific target and a time frame. Objectives translate the broad direction into results that can be monitored.

  1. AThe first is a vision-type statement and the second is a measurable strategic objectiveCorrect
  2. BBoth are tactical budgets
  3. CThe first is a measurable objective and the second is a vision
  4. DBoth are operating policies

Explanation

A vision is an aspirational, broad statement of the desired future position and is not quantified. Raising share from 12% to 18% in three years is specific, measurable and time bound, so it is an objective. Reversing them misreads the nature of each.

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